Glossary

What Is Artificial Intelligence (AI)? Definition and Example

What Is Artificial Intelligence (AI)? Definition and Example
Definition

Artificial intelligence is software that performs tasks that normally need human intelligence, such as understanding language, recognising images, making predictions and deciding what to do next.

What it means

AI is a broad field. Today the AI most people use is generative AI, which can write, summarise and answer questions. Other kinds of AI recommend videos, detect fraud or read medical scans. AI systems learn patterns from large amounts of data rather than following rules written line by line.

Example

When a streaming service suggests a film, or a chatbot drafts an email from a short note, AI is working behind the scenes.

Why it matters

Understanding what AI is, and what it is not, helps you use it well. It is a powerful tool for drafting, research and sorting information, but it can be wrong and it does not replace your judgment.

  • Generative AI: Generative AI is a type of artificial intelligence that creates new content, such as text, images, audio.
  • Large Language Model (LLM): A large language model, or LLM, is an AI system trained on huge amounts of text to understand and generate.
  • AI Agent: An AI agent is an AI system that works toward a goal by planning steps, using tools such as search or files.
Penny the squirrel, The AI Investor mascot

Learn this live, for free

Join the free 90-minute live masterclass, every Friday, 7 PM IST (India) or 7 PM ET (everywhere else). No tech background needed.

Register for the masterclass now

Education only. This glossary is general information, not financial, legal or career advice.

Frequently asked questions

Is AI the same as a robot?

No. AI is software. A robot is a machine, and some robots use AI to decide what to do.

Do I need to code to use AI?

No. Most everyday AI tools work by typing or speaking plain language.

Can AI make mistakes?

Yes. AI can state wrong facts with confidence, so check anything important against a reliable source.