01 / The Model
Generative AI
AI that produces new content, such as text, images, audio or code, rather than only sorting or predicting from existing data. It is the kind most people now mean when they say AI.
How you’ll hear it
“Is our fraud model generative AI?”
“No. It classifies transactions. Generative AI writes, draws or speaks.”
Avoid
Using generative AI as a synonym for all AI. Much valuable AI predicts or classifies and generates nothing.
The longer version
Generative AI creates output that did not exist before: a draft, an image, a summary, a line of code. Large language models are the best-known example. It sits alongside older forms of AI that forecast demand, detect fraud or sort documents, which remain just as useful and are often cheaper and more predictable.