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How does generative AI work?

Get an overview of generative AI, how it works, and how it’s poised to shape the future.
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What is generative AI?

Generative AI refers to a class of AI models, such as the GPT series or Llama, that analyzes large amounts of data and generates new content, including text, images, and code, that mirrors human expression—redefining our relationship to technology.

Key takeaways

  • Get an introduction to generative AI, its evolution, and its many applications.
  • Explore the core concepts of generative AI, including how neural networks work to process data.
  • Discover the training process that allows generative AI to learn, improve, and process natural language.
  • Dive into examples of generative AI in action.
  • Learn about the challenges and limitations of generative AI.
  • Find out how researchers are working to make generative AI responsible—and see what’s in store for the future.

Overview of generative AI

Generative AI uses advanced machine learning techniques to analyze large datasets and generate new content based on the context, style, structure, and tone of the original data. When creating content, the AI model draws from patterns in the data to create outputs that are often indistinguishable from human-created material, whether it's text, images, code, or even music.

The evolution of generative AI can be traced back to the early days of chatbots, which were primarily rule-based systems with limited conversational abilities. This was the early advent of conversational AI, which differs from generative AI in that it focuses specifically on machines engaging in coherent dialogue with users, oftentimes in a customer support or virtual assistant role.

As computational power and data availability increased, the introduction of more complex models marked significant milestones. The release of OpenAI’s ChatGPT showcased a breakthrough in natural language processing, demonstrating the capacity to generate natural, contextually relevant dialogue. Advancements in neural networks further improved the model’s ability to understand language data, making interactions even more seamless and human-like.

Generative AI has since found applications across many industries, reshaping how organizations approach creativity and problem-solving. Generative AI helps write scripts, design art, and score music. It creates personalized content tailored to specific audiences depending on their specific needs. It can predict interactions between drugs and summarize its findings in a report. It can even provide you with support when you need help. By cultivating creativity, boosting productivity, and streamlining processes, generative AI continues to transform how we interact with technology—and each other. 

Core concepts of generative AI

Generative AI is built upon the foundation of neural networks, which are computational models inspired by the structure and function of the human brain. These networks consist of multiple layers of interconnected neurons that process and transmit information, where each layer serves a specific purpose in processing information.

The first layer, the input layer, receives raw data that gets transformed the more it travels from layer to layer, ultimately producing output in the final layer. This hierarchical structure allows neural networks to learn complex patterns and representations in data, with deeper layers often identifying more abstract patterns—just like how the human brain processes sensory information.

Parameters, or weights, within these layers are crucial, as they determine how the input data is transformed. For instance, GPT-3.5, with its 175 billion parameters, demonstrates an immense capacity to learn and generate sophisticated text, as each parameter contributes to the model's ability to recognize nuances in language and context, leading to more coherent and contextually relevant outputs.

How generative AI models work

Generative AI models need to be trained on data. This involves exposing the neural network to large datasets, where the model learns to recognize patterns. The training process consists of two types of learning: supervised and unsupervised learning. Under supervised learning, the model is provided with labeled data, allowing it to learn specific outputs for given inputs, while in unsupervised learning, the model explores the data without explicit labels, identifying inherent structures or groupings on its own.

During training, the model learns to improve its predictions iteratively, refining its ability to generate coherent and relevant outputs. This is achieved through a process called backpropagation, where the model makes predictions based on the input data, compares its outputs to the actual results, then calculates an error or loss. This feedback loop allows the network to fine-tune its parameters, gradually improving its ability to generate accurate and coherent content.

In terms of language processing, generative AI breaks text down into smaller, manageable units called tokens, which can represent whole words, subwords, or even individual characters, depending on the model's design. This allows the model to handle a diverse range of vocabulary and linguistic variations more effectively. Through token processing, the model can better understand relationships between words and generate more nuanced outputs, enhancing the model's ability to create coherent sentences and maintain context over longer passages, ultimately improving its performance in tasks like text generation and conversation.

Examples of generative AI in action

Generative AI has a range of applications across a variety of fields and industries. Some notable examples include:

  • Human-like text generation. Generative AI models, including the GPT series, can create articles, stories, and social media posts, enhancing content creation and marketing efforts. They can power chatbots that engage in natural conversations and provide customer support. They can also assist in summarizing long documents and generating code snippets for developers, in turn boosting productivity.

  • Image creation. Models such as DALL-E can generate unique images from text prompts, allowing users to produce artwork or designs that reflect specific concepts or styles—perfect for art direction, product design, and visual design in gaming.

  • Audio generation. Tools like OpenAI’s MuseNet can compose original music in various genres, helping musicians create new pieces, soundtracks, and soundscapes for film. They can also generate realistic voiceovers and speech synthesis for use in audiobooks, virtual assistants, and video games.

  • Video creation. Generative AI can assist in video creation by suggesting edits, inserting transitions, or even generating new footage, allowing for rapid content production. Models like Synthesia can create synthetic videos featuring realistic avatars that deliver presentations or narrate content, streamlining educational and marketing efforts.

Challenges and limitations

Generative AI faces several challenges and limitations, including:

  • Resource requirements. Generative AI models demand substantial computational power and energy to run, making them costly and environmentally impactful to train.

  • Lack of transparency. Lack of transparency in the internal processes and decision-making pathways of models makes it difficult to understand how outputs are generated. This hinders the ability to hold AI accountable.

  • Complexity of creativity. Because AI-generated content is often the result of learned patterns rather than true innovation, generative AI still falls short of capturing the magic and complexity of human creativity.

  • Hallucinations. Generative AI models can produce plausible but false information, leading to potential misinformation. This poses a significant risk to critical fields such as journalism, healthcare, and education.

  • Biases. Training data can contain inherent biases, resulting in outputs that perpetuate stereotypes, further marginalizing certain groups.

  • Questions regarding intellectual property. Ethical concerns regarding authorship, ownership, and accountability are an ongoing debate in the realm of AI, signaling a need for responsible AI practices and frameworks.

  • The potential for misuse. Because of its ability to create misleading content and deepfakes, generative AI can be used for malicious purposes, such as propaganda or scams.

The future of generative AI

As researchers continue to refine their techniques, generative AI models are poised to become even more sophisticated—and even more responsible. This could lead to more contextually relevant content with fewer instances of hallucinations and misinformation. Researchers are also experimenting with enhanced training methods, such as reinforcement learning from human feedback, which could lead to more nuanced outputs, addressing concerns about biases.

Generative AI is expected to drive significant innovations across many domains. In healthcare, AI is generating personalized treatment plans tailored to individual patient profiles, resulting in better care. In education, teachers are using AI to create customized curriculum based on students' strengths and weaknesses. And in creative industries, AI is already revolutionizing the way designers, developers, copywriters, and screenwriters are creating work. These advancements, however, come with societal implications. Due to shifts in the job market and questions around ownership, there is a growing demand for more regulatory frameworks around the role of AI in human life.

As the era of AI continues to enter newer and more exciting phases, it’s essential that researchers and practitioners ensure that their advancements serve the public good while minimizing risk through ongoing dialogue with stakeholders. So long as there is a balancing of innovation with ethics, AI is sure to usher in a brighter and more productive future.

Frequently asked questions

  • Generative AI refers to a class of AI systems that are designed to create new content, such as text, images, music, or videos, by learning patterns from existing data. These models, like the GPT series and DALL-E, use techniques such as deep learning to produce outputs that can mimic human creativity and expression. Learn more.
  • Controlling the output of generative AI systems prevents the dissemination of potentially false or harmful information. It also helps promote fairness and inclusivity by mitigating risks related to biases.
  • The key feature of generative AI is its ability to generate new content that feels natural, contextually relevant, and often indistinguishable from human-generated content. As a result, generative AI helps organizations save time, streamline processes, and boost creativity.
  • Generative AI uses deep learning algorithms, such as neural networks, to analyze patterns from large datasets. It then predicts and constructs outputs that align with the data it has been trained on, in turn creating novel combinations and variations in the form of new content.
  • Generative AI is a subset of AI. AI encompasses a broader range of technologies and applications, including tasks like data analysis, classification, and decision-making, which may not involve content generation. Learn more.
  • The initial input is called a prompt. A prompt can be a text query, an image, or other forms of data that guide the model in generating relevant content.
  • The main goal of generative AI is to help people and organizations achieve their goals faster and more efficiently. In fact, bringing AI to your business can help you achieve real AI business impact and value.
  • To use generative AI, start by inputting a clear and specific prompt. The model will then generate content based on that prompt. You may refine your prompts or iterate on the results to better suit your goals.
  • OpenAI's GPT series and Google’s Gemini are examples of generative AI that can create human-like text based on prompts.

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