What is generative AI? A definition with a photo studio
North Light Studio, in Portland, Maine, shoots portraits and product photos. It has used AI for years without calling it that: the camera detects faces and focuses, and the inbox sets the junk mail aside. That AI recognizes and classifies. Generative AI does something else: you ask it to “describe the portrait session for the website” and it writes a paragraph that didn’t exist anywhere.
What is generative AI and how does it work? The short version
During training it sees an enormous number of examples and learns what tends to go with what. When you ask for something, it composes a new result that resembles what it learned. For text, the engine is a large language model, or LLM, which writes one word, or piece of a word, at a time; those pieces are called tokens. What you type to ask for it is called a prompt.
What is generative AI vs. AI of the older kind?
The older kind answers with a label or a number: “this is junk mail,” “this customer will come back.” Generative AI answers with a whole piece of work. That’s where the usual confusion comes from: not all AI generates, and generative AI isn’t “the good AI.” It’s a different job.
What is generative AI vs. agentic AI?
Generative AI produces something when you ask: a draft, an image, a summary. “Agentic AI” is the name for systems that put a generative model to work on a goal: they plan steps, use tools such as a search or a calendar, and act with less hand-holding. So agentic AI is a layer on top, not a rival: an AI agent uses generative AI to decide what to do next and to write its output. The more such a system does without asking, the more its limits and its review step matter.
Generative AI examples at a small business
Writing a first draft, summarizing a long document, answering questions, suggesting ideas, changing the tone of a text. At the studio: the write-up for each session, the reply to someone asking for a quote, the caption for a photo. To start in an orderly way, there’s the guide to implementing AI in a small business; the rest is in the guides.
Its limits
It makes things up: what it produces sounds right even when it’s false, and that goes by the name AI hallucinations. It doesn’t know your company unless someone has told it about it. And what it creates has to be reviewed, because nobody has checked it before: it didn’t exist.