Anthropic's New AI Model (Fable 5) | Powerful, Expensive, and Maybe Breaking Your NDAs
What you should know before IT turns it on. And 3 finance use cases I'm testing
👋 Sharing all the things I am doing with AI in finance/accounting. Subscribe and share with your finance/accounting teams.
Just a few weeks ago Anthropic announced Mythos, an AI model so dangerously proficient at cybersecurity hacking that they paused releasing it to the public until large companies and security firms could use it to find their security vulnerabilities first.
TLDR: Anthropic was worried (at least for marketing purposes) that Mythos could disrupt the global economy…
Yesterday they released a safety-modified version of Mythos called Fable 5.
Fable 5 is VERY Powerful
Everyone who has used Fable 5 (me included) reports a major jump in capabilities. And the benchmarks reflect that jump…
Fable 5 is EXPENSIVE
With great power comes great costs…
Fable 5 is 2x more expensive than the previous most expensive model (Opus 4.8).
Currently Fable 5 is included in the subscription plans (subject to existing usage limits). But in a couple of weeks that changes. You will only be able to use Fable 5 with usage credits (pay-as-you-go). Anthropic did say they hope to bring it back to subscriptions soon. Anthropic is compute-constrained and Fable 5 is expensive, so they are limiting usage.
Fable 5’s Privacy Concern (breaking NDAs?)
Using Fable 5 means your prompts and the model's outputs sit on Anthropic's systems for 30 days and can be human-reviewed for safety.
It overrides the zero-retention deals enterprises negotiated. This applies even if your enterprise agreement says otherwise…So uploading anything under an NDA or other confidentiality obligations (M&A, earnings announcements, etc.) would likely put you in breach.
Don’t automatically turn on Fable 5 for all users and make sure users know not to upload confidential information to Fable 5. You could be breaking NDAs…
Three Finance Use Cases With Fable 5
I haven’t used Fable 5 with real data for finance use cases yet given the privacy concern, but below are a few things I am excited about (that I have tested with some dummy data).
1. Drafting S-1s
Gabe, President of Harvey, demonstrated that Fable 5 is a huge improvement for drafting an S-1 with better formatting, structure, and writing.
Similarly, Fable 5 is much better for drafting board memos, board decks, and other long, complex, analytical work.
2. BvA Commentary and Accounting Flux Explanations
A lot of time in both accounting and FP&A is spent researching and documenting financial trends, budget vs actuals, etc. To date, most finance folks have been disappointed by AI’s ability to draft this commentary.
But Opus 4.8 was already saving my team a bunch of time so given Fable’s jump in benchmarks, it should be really good at this.
3. ASC 606 Revenue Recognition Review
Fable 5 is particularly strong with document reasoning and research.
I currently have the below built out using Opus 4.8, which is good. I tested Fable with dummy data and it blew me away. It catches things I would have missed and documents it exactly how I would think a director-level revenue person would…
We created an AI agent that has our ASC 606 policies, customer-specific memos, and historical contract reviews.
Reviews draft quotes and flags potential issues to the sales rep before it’s even discussed with the customer.
Creates an ASC 606 summary for each contract that documents key terms, rev rec considerations, etc
In Summary…
Make sure your IT team carefully rolls out Fable 5. It’s very expensive and has privacy concerns you want to watch out for.
But…Fable 5 is a major leap on the benchmarks that matter for finance and accounting. Once the privacy concerns are resolved, revisit use cases in finance and if/when Fable should be used (versus a less expensive model)
Footnotes:
I am opening up sponsorships for the first time for this newsletter (CFOpilot). Reach out now and get amaaazing prices! Email onlycfo@onlycfo.io
Subscribe and forward this newsletter to your team.