What is Generative AI?
Generative AI is a class of machine learning models that create new content, such as text, images, code or audio, by learning patterns from large amounts of training data.
In more detail
Large language models are the form most businesses meet first, but the category also covers image, audio and video models. The model predicts likely output from a prompt. That is why it writes fluent drafts, and also why it can state wrong things with confidence. In business use, the generative step is usually one part of a larger system: retrieval pulls the right documents, tools fetch live data and validation checks the output before anyone sees it. Typical uses are drafting replies, summarizing contracts, extracting fields from messy documents and answering questions over internal files. We use it where the output can be checked. We avoid it for exact calculations, because arithmetic, tax and ledger postings belong in ordinary code.
Example
A distributor uses a generative model to read supplier emails and draft a reply for a buyer to approve. The model writes the text. Rules look up the order status and the price, so the figures in the draft come from the ERP and not from the model.