Books, Courses & Certifications
Driving cost-efficiency and speed in claims data processing with Amazon Nova Micro and Amazon Nova Lite
Amazon operations span the globe, touching the lives of millions of customers, employees, and vendors every day. From the vast logistics network to the cutting-edge technology infrastructure, this scale is a testament to the company’s ability to innovate and serve its customers. With this scale comes a responsibility to manage risks and address claims—whether they involve worker’s compensation, transportation incidents, or other insurance-related matters. Risk managers oversee claims against Amazon throughout their lifecycle. Claim documents from various sources grow as the claims mature, with a single claim consisting of 75 documents on average. Risk managers are required to strictly follow the relevant standard operating procedure (SOP) and review the evolution of dozens of claim aspects to assess severity and to take proper actions, reviewing and addressing each claim fairly and efficiently. But as Amazon continues to grow, how are risk managers empowered to keep up with the growing number of claims?
In December 2024, an internal technology team at Amazon built and implemented an AI-powered solution as applied to data related to claims against the company. This solution generates structured summaries of claims under 500 words across various categories, improving efficiency while maintaining accuracy of the claims review process. However, the team faced challenges with high inference costs and processing times (3–5 minutes per claim), particularly as new documents are added. Because the team plans to expand this technology to other business lines, they explored Amazon Nova Foundation Models as potential alternatives to address cost and latency concerns.
The following graphs show performance compared with latency and performance compared with cost for various foundation models on the claim dataset.
The evaluation of the claims summarization use case proved that Amazon Nova foundation models (FMs) are a strong alternative to other frontier large language models (LLMs), achieving comparable performance with significantly lower cost and higher overall speed. The Amazon Nova Lite model demonstrates strong summarization capabilities in the context of long, diverse, and messy documents.
Solution overview
The summarization pipeline begins by processing raw claim data using AWS Glue jobs. It stores data into intermediate Amazon Simple Storage Service (Amazon S3) buckets, and uses Amazon Simple Queue Service (Amazon SQS) to manage summarization jobs. Claim summaries are generated by AWS Lambda using foundation models hosted in Amazon Bedrock. We first filter the irrelevant claim data using an LLM-based classification model based on Nova Lite and summarize only the relevant claim data to reduce the context window. Considering relevance and summarization requires different levels of intelligence, we select the appropriate models to optimize cost while maintaining performance. Because claims are summarized upon arrival of new information, we also cache the intermediate results and summaries using Amazon DynamoDB to reduce duplicate inference and reduce cost. The following image shows a high-level architecture of the claim summarization use case solution.
Although the Amazon Nova team has published performance benchmarks across several different categories, claims summarization is a unique use case given its diversity of inputs and long context windows. This prompted the technology team owning the claims solution to investigate further with their own benchmarking study. To assess the performance, speed, and cost of Amazon Nova models for their specific use case, the team curated a benchmark dataset consisting of 95 pairs of claim documents and verified aspect summaries. Claim documents range from 1,000 to 60,000 words, with most being around 13,000 words (median 10,100). The verified summaries of these documents are usually brief, containing fewer than 100 words. Inputs to the models include diverse types of documents and summaries that cover a variety of aspects in production.
According to benchmark tests, the team observed that Amazon Nova Lite is twice as fast and costs 98% less than their current model. Amazon Nova Micro is even more efficient, running four times faster and costing 99% less. The substantial cost-effectiveness and latency improvements offer more flexibility for designing a sophisticated model and scaling up test compute to improve summary quality. Moreover, the team also observed that the latency gap between Amazon Nova models and the next best model widened for long context windows and long output, making Amazon Nova a stronger alternative in the case of long documents while optimizing for latency. Additionally, the team performed this benchmarking study using the same prompt as the current in-production solution with seamless prompt portability. Despite this, Amazon Nova models successfully followed instructions and generated the desired format for post-processing. Based on the benchmarking and evaluation results, the team used Amazon Nova Lite for classification and summarization use cases.
Conclusion
In this post, we shared how an internal technology team at Amazon evaluated Amazon Nova models, resulting in notable improvements in inference speed and cost-efficiency. Looking back on the initiative, the team identified several critical factors that offer key advantages:
- Access to a diverse model portfolio – The availability of a wide array of models, including compact yet powerful options such as Amazon Nova Micro and Amazon Nova Lite, enabled the team to quickly experiment with and integrate the most suitable models for their needs.
- Scalability and flexibility – The cost and latency improvements of the Amazon Nova models allow for more flexibility in designing sophisticated models and scaling up test compute to improve summary quality. This scalability is particularly valuable for organizations handling large volumes of data or complex workflows.
- Ease of integration and migration – The models’ ability to follow instructions and generate outputs in the desired format simplifies post-processing and integration into existing systems.
If your organization has a similar use case of large document processing that is costly and time-consuming, the above evaluation exercise shows that Amazon Nova Lite and Amazon Nova Micro can be game-changing. These models excel at handling large volumes of diverse documents and long context windows—perfect for complex data processing environments. What makes this particularly compelling is the models’ ability to maintain high performance while significantly reducing operational costs. It’s important to iterate over new models for all three pillars—quality, cost, and speed. Benchmark these models with your own use case and datasets.
You can get started with Amazon Nova on the Amazon Bedrock console. Learn more at the Amazon Nova product page.
About the authors
Aitzaz Ahmad is an Applied Science Manager at Amazon, where he leads a team of scientists building various applications of machine learning and generative AI in finance. His research interests are in natural language processing (NLP), generative AI, and LLM agents. He received his PhD in electrical engineering from Texas A&M University.
Stephen Lau is a Senior Manager of Software Development at Amazon, leads teams of scientists and engineers. His team develops powerful fraud detection and prevention applications, saving Amazon billions annually. They also build Treasury applications that optimize Amazon global liquidity while managing risks, significantly impacting the financial security and efficiency of Amazon.
Yong Xie is an applied scientist in Amazon FinTech. He focuses on developing large language models and generative AI applications for finance.
Kristen Henkels is a Sr. Product Manager – Technical in Amazon FinTech, where she focuses on helping internal teams improve their productivity by leveraging ML and AI solutions. She holds an MBA from Columbia Business School and is passionate about empowering teams with the right technology to enable strategic, high-value work.
Shivansh Singh is a Principal Solutions Architect at Amazon. He is passionate about driving business outcomes through innovative, cost-effective and resilient solutions, with a focus on machine learning, generative AI, and serverless technologies. He is a technical leader and strategic advisor to large-scale games, media, and entertainment customers. He has over 16 years of experience transforming businesses through technological innovations and building large-scale enterprise solutions.
Dushan Tharmal is a Principal Product Manager – Technical on the Amazons Artificial General Intelligence team, responsible for the Amazon Nova Foundation Models. He earned his bachelor’s in mathematics at the University of Waterloo and has over 10 years of technical product leadership experience across financial services and loyalty. In his spare time, he enjoys wine, hikes, and philosophy.
Anupam Dewan is a Senior Solutions Architect with a passion for generative AI and its applications in real life. He and his team enable Amazon builders who build customer-facing applications using generative AI. He lives in the Seattle area, and outside of work, he loves to go hiking and enjoy nature.
Books, Courses & Certifications
Complete Guide with Curriculum & Fees
The year 2025 for AI education provides choices catering to learning style, career goal, and budget. The Logicmojo Advanced Data Science & AI Program has emerged as the top one, offering comprehensive training with proven results in placement for those wishing to pursue job-oriented training. It offers the kind of live training, projects, and career support that fellow professionals seek when interested in turning into a high-paying AI position.
On the other hand, for the independent learner seeking prestige credentials, a few other good options might include programs from Stanford, MIT, and DeepLearning.AI. Google and IBM certificates are an inexpensive footing for a beginner, while, at the opposite end of the spectrum, a Carnegie Mellon certificate is considered the ultimate academic credential in AI.
Whatever choice you make in 2025 to further your knowledge in AI will place you at the forefront of technology innovation. AI, expected to generate millions of jobs, has the potential to revolutionize every industry, and so whatever you learn today will be the deciding factor in your career waters for at least the next few decades.
Books, Courses & Certifications
Artificial Intelligence and Machine Learning Bootcamp Powered by Simplilearn
Artificial Intelligence and Machine Learning are noteworthy game-changers in today’s digital world. Technological wonders once limited to science fiction have become science fact, giving us innovations such as self-driving cars, intelligent voice-operated virtual assistants, and computers that learn and grow.
The two fields are making inroads into all areas of our lives, including the workplace, showing up in occupations such as Data Scientist and Digital Marketer. And for all the impressive things that Artificial Intelligence and Machine Learning have accomplished in the last ten years, there’s so much more in store.
Simplilearn wants today’s IT professionals to be better equipped to embrace these new technologies. Hence, it offers Machine Learning Bootcamp, held in conjunction with Caltech’s Center for Technology and Management Education (CTME) and in collaboration with IBM.
The bootcamp covers the relevant points of Artificial Intelligence and Machine Learning, exploring tools and concepts such as Python and TensorFlow. The course optimizes the academic excellence of Caltech and the industry prowess of IBM, creating an unbeatable learning resource that supercharges your skillset and prepares you to navigate the world of AI/ML better.
Why is This a Great Bootcamp?
When you bring together an impressive lineup of Simplilearn, Caltech, and IBM, you expect nothing less than an excellent result. The AI and Machine Learning Bootcamp delivers as promised.
This six-month program deals with vital AI/ML concepts such as Deep Learning, Statistics, and Data Science With Python. Here is a breakdown of the diverse and valuable information the bootcamp offers:
- Orientation. The orientation session prepares you for the rigors of an intense, six-month learning experience, where you dedicate from five to ten hours a week to learning the latest in AI/ML skills and concepts.
- Introduction to Artificial Intelligence. There’s a difference between AI and ML, and here’s where you start to learn this. This offering is a beginner course covering the basics of AI and workflows, Deep Learning, Machine Learning, and other details.
- Python for Data Science. Many data scientists prefer to use the Python programming language when working with AI/ML. This section deals with Python, its libraries, and using a Jupyter-based lab environment to write scripts.
- Applied Data Science with Python. Your exposure to Python continues with this study of Python’s tools and techniques used for Data Analytics.
- Machine Learning. Now we come to the other half of the AI/ML partnership. You will learn all about Machine Learning’s chief techniques and concepts, including heuristic aspects, supervised/unsupervised learning, and developing algorithms.
- Deep Learning with Keras and Tensorflow. This section shows you how to use Keras and TensorFlow frameworks to master Deep Learning models and concepts and prepare Deep Learning algorithms.
- Advanced Deep Learning and Computer Vision. This advanced course takes Deep Learning to a new level. This module covers topics like Computer Vision for OCR and Object Detection, and Computer Vision Basics with Python.
- Capstone project. Finally, it’s time to take what you have learned and implement your new AI/ML skills to solve an industry-relevant issue.
The course also offers students a series of electives:
- Statistics Essentials for Data Science. Statistics are a vital part of Data Science, and this elective teaches you how to make data-driven predictions via statistical inference.
- NLP and Speech Recognition. This elective covers speech-to-text conversion, text-to-speech conversion, automated speech recognition, voice-assistance devices, and much more.
- Reinforcement Learning. Learn how to solve reinforcement learning problems by applying different algorithms and strategies like TensorFlow and Python.
- Caltech Artificial Intelligence and Machine Learning Bootcamp Masterclass. These masterclasses are conducted by qualified Caltech and IBM instructors.
This AI and ML Bootcamp gives students a bounty of AI/ML-related benefits like:
- Campus immersion, which includes an exclusive visit to Caltech’s robotics lab.
- A program completion certificate from Caltech CTME.
- A Caltech CTME Circle membership.
- The chance to earn up to 22 CEUs courtesy of Caltech CTME.
- An online convocation by the Caltech CTME Program Director.
- A physical certificate from Caltech CTME if you request one.
- Access to hackathons and Ask Me Anything sessions from IBM.
- More than 25 hands-on projects and integrated labs across industry verticals.
- A Level Up session by Andrew McAfee, Principal Research Scientist at MIT.
- Access to Simplilearn’s Career Service, which will help you get noticed by today’s top hiring companies.
- Industry-certified certificates for IBM courses.
- Industry masterclasses delivered by IBM.
- Hackathons from IBM.
- Ask Me Anything (AMA) sessions held with the IBM leadership.
And these are the skills the course covers, all essential tools for working with today’s AI and ML projects:
- Statistics
- Python
- Supervised Learning
- Unsupervised Learning
- Recommendation Systems
- NLP
- Neural Networks
- GANs
- Deep Learning
- Reinforcement Learning
- Speech Recognition
- Ensemble Learning
- Computer Vision
About Caltech CTME
Located in California, Caltech is a world-famous, highly respected science and engineering institution featuring some of today’s brightest scientific and technological minds. Contributions from Caltech alumni have earned worldwide acclaim, including over three dozen Nobel prizes. Caltech CTME instructors offer this quality of learning to our students by holding bootcamp master classes.
About IBM
IBM was founded in 1911 and has earned a reputation as the top IT industry leader and master of IT innovation.
How to Thrive in the Brave New World of AI and ML
Machine Learning and Artificial Intelligence have enormous potential to change our world for the better, but the fields need people of skill and vision to help lead the way. Somehow, there must be a balance between technological advancement and how it impacts people (quality of life, carbon footprint, job losses due to automation, etc.).
The AI and Machine Learning Bootcamp helps teach and train students, equipping them to assume a role of leadership in the new world that AI and ML offer.
Books, Courses & Certifications
Teaching Developers to Think with AI – O’Reilly
Developers are doing incredible things with AI. Tools like Copilot, ChatGPT, and Claude have rapidly become indispensable for developers, offering unprecedented speed and efficiency in tasks like writing code, debugging tricky behavior, generating tests, and exploring unfamiliar libraries and frameworks. When it works, it’s effective, and it feels incredibly satisfying.
But if you’ve spent any real time coding with AI, you’ve probably hit a point where things stall. You keep refining your prompt and adjusting your approach, but the model keeps generating the same kind of answer, just phrased a little differently each time, and returning slight variations on the same incomplete solution. It feels close, but it’s not getting there. And worse, it’s not clear how to get back on track.
That moment is familiar to a lot of people trying to apply AI in real work. It’s what my recent talk at O’Reilly’s AI Codecon event was all about.
Over the last two years, while working on the latest edition of Head First C#, I’ve been developing a new kind of learning path, one that helps developers get better at both coding and using AI. I call it Sens-AI, and it came out of something I kept seeing:
There’s a learning gap with AI that’s creating real challenges for people who are still building their development skills.
My recent O’Reilly Radar article “Bridging the AI Learning Gap” looked at what happens when developers try to learn AI and coding at the same time. It’s not just a tooling problem—it’s a thinking problem. A lot of developers are figuring things out by trial and error, and it became clear to me that they needed a better way to move from improvising to actually solving problems.
From Vibe Coding to Problem Solving
Ask developers how they use AI, and many will describe a kind of improvisational prompting strategy: Give the model a task, see what it returns, and nudge it toward something better. It can be an effective approach because it’s fast, fluid, and almost effortless when it works.
That pattern is common enough to have a name: vibe coding. It’s a great starting point, and it works because it draws on real prompt engineering fundamentals—iterating, reacting to output, and refining based on feedback. But when something breaks, the code doesn’t behave as expected, or the AI keeps rehashing the same unhelpful answers, it’s not always clear what to try next. That’s when vibe coding starts to fall apart.
Senior developers tend to pick up AI more quickly than junior ones, but that’s not a hard-and-fast rule. I’ve seen brand-new developers pick it up quickly, and I’ve seen experienced ones get stuck. The difference is in what they do next. The people who succeed with AI tend to stop and rethink: They figure out what’s going wrong, step back to look at the problem, and reframe their prompt to give the model something better to work with.
The Sens-AI Framework
As I started working more closely with developers who were using AI tools to try to find ways to help them ramp up more easily, I paid attention to where they were getting stuck, and I started noticing that the pattern of an AI rehashing the same “almost there” suggestions kept coming up in training sessions and real projects. I saw it happen in my own work too. At first it felt like a weird quirk in the model’s behavior, but over time I realized it was a signal: The AI had used up the context I’d given it. The signal tells us that we need a better understanding of the problem, so we can give the model the information it’s missing. That realization was a turning point. Once I started paying attention to those breakdown moments, I began to see the same root cause across many developers’ experiences: not a flaw in the tools but a lack of framing, context, or understanding that the AI couldn’t supply on its own.
Over time—and after a lot of testing, iteration, and feedback from developers—I distilled the core of the Sens-AI learning path into five specific habits. They came directly from watching where learners got stuck, what kinds of questions they asked, and what helped them move forward. These habits form a framework that’s the intellectual foundation behind how Head First C# teaches developers to work with AI:
- Context: Paying attention to what information you supply to the model, trying to figure out what else it needs to know, and supplying it clearly. This includes code, comments, structure, intent, and anything else that helps the model understand what you’re trying to do.
- Research: Actively using AI and external sources to deepen your own understanding of the problem. This means running examples, consulting documentation, and checking references to verify what’s really going on.
- Problem framing: Using the information you’ve gathered to define the problem more clearly so the model can respond more usefully. This involves digging deeper into the problem you’re trying to solve, recognizing what the AI still needs to know about it, and shaping your prompt to steer it in a more productive direction—and going back to do more research when you realize that it needs more context.
- Refining: Iterating your prompts deliberately. This isn’t about random tweaks; it’s about making targeted changes based on what the model got right and what it missed, and using those results to guide the next step.
- Critical thinking: Judging the quality of AI output rather than just simply accepting it. Does the suggestion make sense? Is it correct, relevant, plausible? This habit is especially important because it helps developers avoid the trap of trusting confident-sounding answers that don’t actually work.
These habits let developers get more out of AI while keeping control over the direction of their work.
From Stuck to Solved: Getting Better Results from AI
I’ve watched a lot of developers use tools like Copilot and ChatGPT—during training sessions, in hands-on exercises, and when they’ve asked me directly for help. What stood out to me was how often they assumed the AI had done a bad job. In reality, the prompt just didn’t include the information the model needed to solve the problem. No one had shown them how to supply the right context. That’s what the five Sens-AI habits are designed to address: not by handing developers a checklist but by helping them build a mental model for how to work with AI more effectively.
In my AI Codecon talk, I shared a story about my colleague Luis, a very experienced developer with over three decades of coding experience. He’s a seasoned engineer and an advanced AI user who builds content for training other developers, works with large language models directly, uses sophisticated prompting techniques, and has built AI-based analysis tools.
Luis was building a desktop wrapper for a React app using Tauri, a Rust-based toolkit. He pulled in both Copilot and ChatGPT, cross-checking output, exploring alternatives, and trying different approaches. But the code still wasn’t working.
Each AI suggestion seemed to fix part of the problem but break another part. The model kept offering slightly different versions of the same incomplete solution, never quite resolving the issue. For a while, he vibe-coded through it, adjusting the prompt and trying again to see if a small nudge would help, but the answers kept circling the same spot. Eventually, he realized the AI had run out of context and changed his approach. He stepped back, did some focused research to better understand what the AI was trying (and failing) to do, and applied the same habits I emphasize in the Sens-AI framework.
That shift changed the outcome. Once he understood the pattern the AI was trying to use, he could guide it. He reframed his prompt, added more context, and finally started getting suggestions that worked. The suggestions only started working once Luis gave the model the missing pieces it needed to make sense of the problem.
Applying the Sens-AI Framework: A Real-World Example
Before I developed the Sens-AI framework, I ran into a problem that later became a textbook case for it. I was curious whether COBOL, a decades-old language developed for mainframes that I had never used before but wanted to learn more about, could handle the basic mechanics of an interactive game. So I did some experimental vibe coding to build a simple terminal app that would let the user move an asterisk around the screen using the W/A/S/D keys. It was a weird little side project—I just wanted to see if I could make COBOL do something it was never really meant for, and learn something about it along the way.
The initial AI-generated code compiled and ran just fine, and at first I made some progress. I was able to get it to clear the screen, draw the asterisk in the right place, handle raw keyboard input that didn’t require the user to press Enter, and get past some initial bugs that caused a lot of flickering.
But once I hit a more subtle bug—where ANSI escape codes like ";10H"
were printing literally instead of controlling the cursor—ChatGPT got stuck. I’d describe the problem, and it would generate a slightly different version of the same answer each time. One suggestion used different variable names. Another changed the order of operations. A few attempted to reformat the STRING
statement. But none of them addressed the root cause.
The pattern was always the same: slight code rewrites that looked plausible but didn’t actually change the behavior. That’s what a rehash loop looks like. The AI wasn’t giving me worse answers—it was just circling, stuck on the same conceptual idea. So I did what many developers do: I assumed the AI just couldn’t answer my question and moved on to another problem.
At the time, I didn’t recognize the rehash loop for what it was. I assumed ChatGPT just didn’t know the answer and gave up. But revisiting the project after developing the Sens-AI framework, I saw the whole exchange in a new light. The rehash loop was a signal that the AI needed more context. It got stuck because I hadn’t told it what it needed to know.
When I started working on the framework, I remembered this old failure and thought it’d be a perfect test case. Now I had a set of steps that I could follow:
- First, I recognized that the AI had run out of context. The model wasn’t failing randomly—it was repeating itself because it didn’t understand what I was asking it to do.
- Next, I did some targeted research. I brushed up on ANSI escape codes and started reading the AI’s earlier explanations more carefully. That’s when I noticed a detail I’d skimmed past the first time while vibe coding: When I went back through the AI explanation of the code that it generated, I saw that the
PIC ZZ
COBOL syntax defines a numeric-edited field. I suspected that could potentially cause it to introduce leading spaces into strings and wondered if that could break an escape sequence. - Then I reframed the problem. I opened a new chat and explained what I was trying to build, what I was seeing, and what I suspected. I told the AI I’d noticed it was circling the same solution and treated that as a signal that we were missing something fundamental. I also told it that I’d done some research and had three leads I suspected were related: how COBOL displays multiple items in sequence, how terminal escape codes need to be formatted, and how spacing in numeric fields might be corrupting the output. The prompt didn’t provide answers; it just gave some potential research areas for the AI to investigate. That gave it what it needed to find the additional context it needed to break out of the rehash loop.
- Once the model was unstuck, I refined my prompt. I asked follow-up questions to clarify exactly what the output should look like and how to construct the strings more reliably. I wasn’t just looking for a fix—I was guiding the model toward a better approach.
- And most of all, I used critical thinking. I read the answers closely, compared them to what I already knew, and decided what to try based on what actually made sense. The explanation checked out. I implemented the fix, and the program worked.
Once I took the time to understand the problem—and did just enough research to give the AI a few hints about what context it was missing—I was able to write a prompt that broke ChatGPT out of the rehash loop, and it generated code that did exactly what I needed. The generated code for the working COBOL app is available in this GitHub GIST.
Why These Habits Matter for New Developers
I built the Sens-AI learning path in Head First C# around the five habits in the framework. These habits aren’t checklists, scripts, or hard-and-fast rules. They’re ways of thinking that help people use AI more productively—and they don’t require years of experience. I’ve seen new developers pick them up quickly, sometimes faster than seasoned developers who didn’t realize they were stuck in shallow prompting loops.
The key insight into these habits came to me when I was updating the coding exercises in the most recent edition of Head First C#. I test the exercises using AI by pasting the instructions and starter code into tools like ChatGPT and Copilot. If they produce the correct solution, that means I’ve given the model enough information to solve it—which means I’ve given readers enough information too. But if it fails to solve the problem, something’s missing from the exercise instructions.
The process of using AI to test the exercises in the book reminded me of a problem I ran into in the first edition, back in 2007. One exercise kept tripping people up, and after reading a lot of feedback, I realized the problem: I hadn’t given readers all the information they needed to solve it. That helped connect the dots for me. The AI struggles with some coding problems for the same reason the learners were struggling with that exercise—because the context wasn’t there. Writing a good coding exercise and writing a good prompt both depend on understanding what the other side needs to make sense of the problem.
That experience helped me realize that to make developers successful with AI, we need to do more than just teach the basics of prompt engineering. We need to explicitly instill these thinking habits and give developers a way to build them alongside their core coding skills. If we want developers to succeed, we can’t just tell them to “prompt better.” We need to show them how to think with AI.
Where We Go from Here
If AI really is changing how we write software—and I believe it is—then we need to change how we teach it. We’ve made it easy to give people access to the tools. The harder part is helping them develop the habits and judgment to use them well, especially when things go wrong. That’s not just an education problem; it’s also a design problem, a documentation problem, and a tooling problem. Sens-AI is one answer, but it’s just the beginning. We still need clearer examples and better ways to guide, debug, and refine the model’s output. If we teach developers how to think with AI, we can help them become not just code generators but thoughtful engineers who understand what their code is doing and why it matters.
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