AI/Claude Intro

Kerry Back
Faculty Workshop
Rice Business 2026

Workshop Overview

AUG 103:00–4:00Intro to Claude
AUG 113:00–4:00Working with Claude
AUG 123:00–4:00Teaching Tools
AUG 133:00–4:00AI Tutors
AUG 143:00–4:00Student Projects
AUG 173:00–4:00AI for Research
AUG 193:00–4:00Personal Assistants
AUG 194:00–5:00Overflow/Extra

Today’s Overview

1

Claude

2

Effective Prompting

3

Code and Documents

4

Verifying Things

5

Example Uses

Claude

A Brief History

2022–2023
Online chatbots
2023–2024
Code and web tools
2025
CLI tools
2025–2026
CLI in an app
2026
Cowork-type agents

An Agent is a Chatbot with Tools

Code Execution

↕

User

↔︎

Agent

↔︎

LLM

↕

Other Tools

Agent in More Detail

Anthropic’s System Prompt

Link to Opus 4.8 system prompt

Two Halves of Claude Desktop

Home or Code?

The two halves of the app, chosen at the top of the left sidebar (the square icon toggles the sidebar)

Four Modes of Claude Desktop

Within Home, Chat or Cowork?

Toggle in the prompt box

Within Code, Local or Cloud?

Selector at the bottom of the window

What to Use?

  • You can chat in any mode
  • You can execute code in any mode

Cowork > Chat on many dimensions. Requires paid account.

Code Local is best for most people, but Claude Desktop is not the best venue

Use Cowork for now

(more later)

Code Cloud is GitHub integration, probably overkill

Configuration

  • Create New Project + Use a Folder Give Claude access to your local files. Store project-specific instructions.
  • Auto Automatically approve. Misleading name. Claude decides: safe -> don’t ask permission, possibly risky -> ask permission
  • Model I recommend Sonnet 5. Capable for anything you probably want to do. Faster and cheaper (easier on token quota).

Do Not Train

Consumer plans — Free, Pro, Max (what we are on)

  • Settings > Privacy > Privacy Settings, then turn off Help improve Claude
  • Direct link: claude.ai/settings/data-privacy-controls
  • The default on a personal account is on
  • Off keeps your data 30 days; on keeps it five years

Commercial plans — Claude for Work, Education, API

  • Your data is never used for training, and there is no setting to find
  • Includes the API, and the API through Amazon Bedrock and Google Vertex
  • If Rice moves us onto one of these, the setting disappears from your account — nothing to do

It is one account setting, not an app setting: it covers Chat, Cowork, the command line, and the Academic Studio extension at once. And it is not in the Anthropic developer console — that is a separate product for API keys.

Effective Prompting

Plan Mode

Claude Desktop has an explicit Plan mode. Or add “plan how to do this before you start.”

Why It Works: Knowledge

  • Planning pulls relevant knowledge into the context window
  • The model answers in light of what it just retrieved, not base rates

Why It Works: Scale

  • Decompose the work into subtasks
  • Verify each one before the next
  • Failures stay small and local

AI is a Prediction Machine, not a Rational Person

Suppose Claude has told you in the past that Method A beats Method B for some task. You ask it to do the task.

Do not assume it will use what it knows. If “A beats B” is not in the context window, and B appeared more often in its training data, it will probably use B.

This is the value of “plan before you act.” Planning surfaces “A beats B,” leading Claude to select A for the task.

Beware of Tunnel Vision

Prediction also means momentum. Once Claude has started down a path, continuing it is the likeliest next step.

What you will see

  • It hits a roadblock and tries to get around it
  • Then another way around, and another — exhaustively, tenaciously
  • What it rarely does is return to the start and ask whether a different path was the better one all along

What helps

  • Periodically ask: are there other approaches that might work better for reaching the end goal?
  • Restate the goal, not just the obstacle — that gives it permission to abandon the path instead of defending it

Steelmanning

Don’t ask AI whether your idea is good. Ask it to make the strongest possible case that your idea is wrong.

Sycophancy: training on human feedback teaches that agreement gets high ratings. Ask “is my plan sound?” and Claude finds reasons it is.

The fix: “What is the strongest argument against this acquisition?”

One step further: have it play a skeptical board member, a regulator, a competitor.

Numbers Need Code

Never trust AI arithmetic. Have it write and run code.

The Problem

  • “47.3%” is as plausible as “52.1%” to a next-token predictor
  • Mental math, rankings, comparisons, aggregations — all unreliable
  • Wrong numbers stated with complete confidence

The Fix

  • Ask for Python, and have it run
  • Arithmetic becomes computation, not prediction
  • Code execution is built into every chatbot and Claude Code

What Not to Do

2022–2023 conventions are now useless or counterproductive.

Skip These

  • “Think step by step” — reasoning models already do, in hidden tokens
  • “Take a deep breath” — measurably useless now
  • “CRITICAL! NEVER EVER…” — overtriggers, and gets worse results

Use With Care

  • “You are an expert data analyst …”
  • Persona stacking can improve tone and structure
  • Direct task framing usually wins

Code and Documents

Example Prompt

Download three FRED (Federal Reserve Economic Data) series as CSV: mortgage rate (MORTGAGE30US), home price (MSPUS), household income (MEHOINUSA672N), 1990 through most recent.

  1. MORTGAGE30US is weekly — resample to quarterly by averaging. MSPUS is already quarterly. MEHOINUSA672N is annual — interpolate linearly between annual observations to produce quarterly values.

  2. Assume a 20% down payment and a 30-year loan. Compute the monthly mortgage payment on a median-priced home and express it as a percentage of monthly median household income.

  3. Plot the affordability ratio as a line chart. Annotate three points: the 2006 bubble peak, the 2012 trough (most affordable in decades, as low rates met depressed prices), and the 2023 spike.

Result

Reading, Editing, and Writing Documents

Claude natively reads text and images, and natively writes text. Everything beyond text is handled by code.

  • Document reading is doc -> text, then read
  • Document creation is text (code) -> doc
  • Office document editing is ‘read and write XML (Extensible Markup Language)’

Example

Get Tesla’s EPS from SEC EDGAR by quarter for the past 5 years. Plot. Create a PowerPoint deck with the plot plus discussion.

The result

tesla.pptx

Creating Excel Workbooks

Claude uses Python to create Excel workbooks, inserting numbers (inputs) and formulas cell-by-cell

Example Prompt

Build an Excel workbook containing a mortgage amortization table. Include a chart of the amount going to interest and the amount going to principal each month.

Claude Plugin for Excel

A chat panel inside Excel itself. Add it from Home → Add-ins. You will be prompted to connect to your Anthropic account (paid account).

Example

Verifying Things

Verify Claims

The Problem

  • Facts, regulations, dates, citations — stated the same way whether real or invented
  • The more obscure the fact, the likelier it is fabricated

The Fix

  • Have it search before answering
  • Ask for sources. Then check them.

Verify Code

Consider a human assistant. Ask where they could have gone wrong.

  • They may not have understood what you wanted.
  • To perform the task, they may have had to make decisions that were different from the decisions you would have made.
  • Their Excel, code, or whatever may have had subtle bugs so it did not do what they expected.

Claude can go wrong in exactly the same ways. How do you check them?

Three Checks

Take advantage of the fact that AI is perfectly patient. You can probe more deeply than you would with a human assistant, and it will not be offended.

Check its understanding

Explain to me what you did and how you did it.

Check its decisions

Report all ways in which my instructions were ambiguous and you made decisions we have not discussed.

Check its code

Show me a sample case and work through the case as if by hand so I can verify your number.

Generator-Critic

Spawn a second Claude to attack the first one’s output, not validate it. Subagents work well — several of them.

The Pattern

  • Generator produces the work
  • Critic gets: “Find every factual error, logical gap, and unsupported assumption. Do not summarize — find flaws.”

Why a Separate Instance?

  • A model is anchored to its own output and defends it
  • A fresh instance with an adversarial mandate is not

Re-Use Tested Code

Once code runs correctly, save it. Re-use it rather than rewrite it.

The Problem with Rewriting

  • Different choices each time
  • Scripts that should agree may not
  • Old bugs reappear

Andrej Karpathy, OpenAI co-founder, former Tesla AI chief, now at Anthropic

October 2025

“They just don’t work. They don’t have enough intelligence, they’re not multimodal enough, they can’t do computer use and all this stuff. They don’t have continual learning. You can’t just tell them something and they’ll remember it.”

“I feel like the industry is making too big of a jump and is trying to pretend like this is amazing, and it’s not. It’s slop.”

December 2025

“I really am mostly programming in English now, a bit sheepishly telling the LLM what code to write… in words. Biggest change to my basic coding workflow in ~2 decades.”

February 2026

“It is hard to communicate how much programming has changed due to AI in the last 2 months: not gradually and over time in the ‘progress as usual’ way, but specifically this last December. Coding agents basically didn’t work before December.”

“I don’t think I’ve typed like a line of code probably since December.”

Examples of Claude Use

Some Local Data

Extract the following from session1.zip into your project folder or just put session1.zip there and tell Claude to extract.

File Rows Key Columns
northwind_customers.xlsx 93 CustomerID, CompanyName, Country
northwind_orders.xlsx 500 OrderID, CustomerID, OrderDate
northwind_orderdetails.xlsx 18,976 OrderID, ProductID, UnitPrice, Quantity
northwind_products.xlsx 77 ProductID, ProductName, CategoryID
northwind_categories.xlsx 8 CategoryID, CategoryName

Merge, Filter, Aggregate, Chart, Analyze, Create

Copy this prompt into Claude:

I have five Northwind files in my project folder: customers, orders, order details, products, and categories. Which product categories generated the most revenue from customers in Germany and France? Show only categories above $10,000, sort highest to lowest, create a bar chart, and put it in a PowerPoint deck. Add some discussion.

Role of Excel

The first spreadsheet program, VisiCalc, was created by a Harvard MBA alum who was inspiried by watching his prof do pro-formas, valuation, and sensitivity analysis on a blackboard with chalk and eraser

Spreadsheets later became the go-to in business for most things numeric

Spreadsheets remain valuable for tabular add-subtract models


Everything else should be done by code written by AI

Example

  • Extract regression.html from session1.zip and double-click
  • It will open in your browser. Upload regression-example.xlsx into the browser.

Lessons

  • This was built by Claude from simple prompts.
  • It is even easier to just run one regression analysis.
  • Students learn as much about regression from prompting Claude as from running it in Excel.
  • Apps like this can be student assignments (more later).

Takeaways

There is no secret to prompting. Just chat (a lot). Treat AI as an infinitely patient colleague with a poor memory. Code execution gives AI enormous power.

Homework

Watch the three-minute video academic_studio.mp4