AI Fundamentals

What is Generative AI?

Generative AI creates original content, including text, images, and audio. Explore the game-changing potential and important challenges this technology brings.

What is Generative AI?

Generative AI (GenAI) is a subset of artificial intelligence focused on creating original content based on patterns learned from existing data. This includes text, images, music, or even entire virtual environments.

Unlike traditional AI, which is used primarily for tasks like classification, prediction, and decision-making, GenAI specifically involves generating new content that mimics the style or structure of the data it was trained on. This opens new avenues for creativity and design, streamlines content production, and enhances customer experiences.

 

What can Generative AI do?

GenAI's ability to generate realistic and high-quality outputs, simulate complex scenarios, and enhance personalized experiences makes it a transformative tool in many industries, including technology, entertainment, healthcare, and education.

GenAI can:

  • Generate Creative Content: Produce original text, images, music, and videos
  • Automate Routine Tasks: Streamline repetitive processes such as data entry, document drafting, and report generation
  • Optimize Processes: Improve operational efficiency by identifying optimal workflows and resource allocation
  • Enhance Data Analysis: Extract patterns and insights from large datasets, supporting research and deep analysis
  • Predict Outcomes: Analyze data to forecast trends and predict future events, helping in decision-making and planning
  • Enhance Personalization: Tailor recommendations and services to individual preferences, improving user experiences
  • Improve Decision-Making: Provide data-driven insights and recommendations for more informed decisions
  • Simulate Scenarios: Model various hypothetical situations to assess potential risks and opportunities, aiding strategic planning

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Brief History

Within the long history of AI, the foundations of generative AI were laid with advancements in neural networks and deep learning techniques in the early 2010s.

These technologies enabled machines to learn automatically and parse data, leading to the development of systems that could generate realistic content.

Key Milestones

  • 2014: Introduction of Generative Adversarial Networks (GANs) by Ian Goodfellow, which could generate realistic images, voices, and text.
  • 2017: Google's transformer architecture significantly improved natural language processing tasks.
  • 2018: Development of BERT (Bidirectional Encoder Representations from Transformers) by Google, enhancing the understanding of context in language models.
  • 2019: Release of OpenAI's GPT-3, demonstrating unprecedented capabilities in language generation.

Recent years have seen the integration of generative AI into various applications, from content creation tools like DALL-E to advanced chatbots like ChatGPT. These advancements are transforming industries by enabling more sophisticated and efficient workflows.

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How Does Generative AI Work?

GenAI processes massive amounts of input data to generate new, original content. This process typically involves deep learning models trained on vast datasets to learn underlying patterns and structures.

These models, such as Generative Adversarial Networks (GANs) and Variational Autoencoders (VAEs), use neural networks to learn the underlying patterns of a dataset.

Inspired by the human brain, neural networks are a series of interconnected algorithms that recognize patterns in data. They consist of layers of interconnected nodes (neurons) that process input data, with each layer extracting increasingly complex features.

During training, the network makes guesses and checks them against correct answers, adjusting itself to improve predictions. Over time, with lots of data and many repetitions, the neural network learns to generate more accurate and authentic content by refining these connections.

 

Types of Generative Models

Generative Adversarial Networks (GANs)

GANs consist of two neural networks—the generator and the discriminator—engaged in a continuous feedback loop. The generator creates new content (e.g., images), while the discriminator evaluates the authenticity of the generated content compared to real data.

Over time and through continuous feedback, the generator improves its capability to produce realistic content that can fool the discriminator.

For example, GANs are used in creating realistic images for fashion. The generator produces images of clothing and the discriminator checks for authenticity.

Variational Autoencoders (VAEs)

VAEs are used to generate new data by learning a pattern from the input data. They work by compressing the input data into a simpler form and then reconstructing it back to its original form.

This technique helps generate new, similar data, like creating new faces or images, adding variety and creativity within a set structure.

Transformers and Large Language Models (LLMs)

Transformers, such as OpenAI's GPT-3, use self-attention mechanisms to process and generate text with high accuracy and contextual relevance. Self-attention mechanisms work by allowing the model to weigh the importance of each word in a sentence relative to all other words, rather than processing each word independently or in a fixed order.

This enables the model to capture context more effectively, understand relationships between words regardless of their position, and generate more coherent and contextually accurate text.

For example, GPT-3 can generate articles, write code, or even create poetry.

How are GenAI Models Trained?

The model training process with generative AI involves several key steps and vast computational resources to enable the creation of original content.

1. Data Collection

Large datasets are collected based on the type of content the model aims to generate. For instance, training a text generation model like GPT-3 requires a massive corpus of text data from books, articles, transcripts, and websites.

2. Data Preprocessing

The collected data is cleaned and preprocessed to remove noise and irrelevant information, ensuring the model learns from only high-quality data.

3. Model Initialization

The model's architecture is defined, and initial weights are set. Weights are numerical values that determine the importance of input features in making predictions or decisions. Initialization also involves selecting the number of layers, nodes, and other hyperparameters that will determine the model's structure and capacity.

4. Model Training Process

The model training process with generative AI involves feeding a large dataset into the model, adjusting its internal parameters through iterative optimization, and refining its ability to produce new, realistic data that mimics the input data.

  • Supervised Learning: In cases where labeled data is available, the model is trained using supervised learning techniques, where it learns to map inputs to desired outputs.
  • Unsupervised Learning. For unlabeled data, unsupervised learning techniques are used, allowing the model to identify patterns and structures within the data on its own.
  • Adversarial Training: In the case of GANs, the generator and discriminator are trained simultaneously. The generator creates fake data, and the discriminator learns to distinguish between real and fake data. Both networks improve through continuous feedback.
  • Optimization: The model's settings, called parameters, are continually adjusted to reduce the difference between what the model predicts and the actual results. By repeatedly tweaking these settings, the model calculates how much the error (loss) changes with each adjustment. It then makes small changes, guided by a step size known as the learning rate, to reduce the error. This process continues until the model finds the best settings to minimize error, ensuring its predictions are as close to the real data as possible.
  • Evaluation and Fine-Tuning: The model's performance is evaluated on a validation set, and fine-tuning is performed to improve accuracy and generalization. This may involve adjusting hyperparameters, adding regularization techniques, or incorporating additional data.
  • Deployment: Once trained, the model is deployed for practical use, where it generates new content based on user inputs or predefined prompts.

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How are Generative AI Models Evaluated?

Evaluating generative AI models involves assessing their performance and reliability through various metrics and qualitative analyses. Here are the key metrics:

  • Quality of Output: The realism and coherence of generated content. For instance, in text generation, this involves checking for grammatical accuracy and contextual relevance.
  • Diversity: The model's ability to generate a wide range of outputs without repeating the same patterns. This ensures the model is not simply memorizing the training data but generating novel content.
  • Fidelity: How closely the generated content matches the desired attributes or follows the given prompts. In image generation, this could involve comparing AI-generated images to real-world examples.
  • Human Evaluation: Humans qualitatively assess the generated content for aspects such as creativity, relevance, and overall quality. Human feedback is essential for understanding nuances that automated metrics might miss.
  • Technical Metrics: Pre-existing assessment metrics to help quantify the performance and effectiveness of generative AI models. These could include the Fréchet Inception Distance (FID) for image generation, which quantifies how similar the generated images are to real images, or BLEU scores for text generation, which measure how closely the generated text matches a set of reference texts.
  • Resilience: The model's performance under various conditions and with different input prompts to ensure consistency and reliability. This includes evaluating how well the model handles edge cases or unusual inputs. 

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Applications of Generative AI

Healthcare

Healthcare organizations are using GenAI to accelerate drug discovery, create synthetic medical data, improve medical image analysis, and personalize care for individual patients.

  • Drug Discovery: GenAI can accelerate and streamline the drug development process. It can predict molecular structures that are likely to interact with specific biological targets and identify compounds that might be overlooked by human beings and other conventional approaches. By simulating how different molecules will behave and interact with biological systems, generative AI also reduces the time and cost associated with experimental trials.
  • Synthetic Data: Healthcare organizations are using GenAI to create synthetic data, which helps overcome challenges with data privacy regulations and the scarcity of high-quality medical data. With synthetic, realistic patient data, such as medical records, imaging data, and genetic information, researchers and developers can test new diagnostic tools, treatment plans, and predictive models without compromising patient privacy.
  • Medical Imaging: GenAI can enhance the quality, accuracy, and interpretability of images such as X-rays, MRIs, and CT scans. Advanced generative models can reconstruct high-resolution images from low-quality inputs, significantly improving the diagnostic capabilities of imaging tools. These models can also generate synthetic medical images to augment training datasets, which is particularly valuable for rare conditions where data is scarce. 
  • Personalized Medicine: GenAI can help tailor treatments and interventions based on individual patient data. By analyzing genetic, environmental, and lifestyle factors, GenAI models can predict how different patients will respond to various treatments, allowing for highly customized healthcare plans. These models can simulate the effects of new drugs on specific genetic profiles and help identify biomarkers that indicate how a patient might react to certain therapies.

Finance

Financial services companies are using GenAI to automate complex tasks such as fraud detection, financial forecasting, and report generation, enhancing decision-making and reducing operational costs.

  • Fraud Detection: GenAI can analyze vast amounts of transaction data, learning the typical patterns and behaviors associated with legitimate transactions. It can then generate synthetic fraudulent scenarios to train and test detection systems, enhancing their ability to spot unusual and potentially fraudulent activities. These models can detect subtle anomalies and complex patterns that traditional rule-based systems might miss. Moreover, generative AI can adapt to evolving fraud tactics, continually updating its understanding and improving its detection capabilities.
  • Financial Forecasting: GenAI models can identify complex historical patterns and relationships that traditional methods might overlook. These models can then generate realistic scenarios and simulate various market conditions, providing financial analysts with valuable insights into potential future trends. For example, GenAI can predict stock price movements, forecast economic indicators, and estimate financial risks under different conditions. This allows financial institutions to make more informed decisions, optimize investment strategies, and manage risks more effectively.
  • Report Generation: GenAI is transforming report generation in financial services by automating the creation of comprehensive, accurate, and tailored reports. By analyzing large volumes of financial data, GenAI models can generate detailed reports that highlight key insights, trends, and anomalies, saving time and effort for financial analysts and professionals. GenAI can also customize reports based on the needs of different stakeholders, providing executives, investors, and clients with relevant and easy-to-understand information.
  • Customer Service: Through GenAI-powered chatbots and virtual assistants, financial institutions can offer instant responses to customer inquiries, manage routine transactions, and provide detailed information about products and services. These AI systems are capable of understanding and processing natural language, allowing them to handle a wide range of customer interactions simultaneously. Additionally, GenAI can analyze historical customer data to tailor responses and recommendations and better personalize the customer experience.

Entertainment

GenAI is changing creative processes in the entertainment industry. Content creators can now leverage GenAI models to create original written content, lifelike virtual characters, immersive game environments, and original music and soundtracks.

  • Scriptwriting: Using advanced language models, GenAI can generate scripts for movies, TV shows, and other forms of media. By analyzing vast datasets of existing screenplays, GenAI systems can understand plot structures, character development, and dialogue nuances, providing writers with a valuable tool to enhance creativity and overcome writer's block. Moreover, GenAI can tailor scripts to specific genres, audiences, and themes, ensuring the content is engaging and relevant.
  • Virtual Characters: By leveraging advanced machine learning techniques, GenAI can generate lifelike animations, facial expressions, and movements that mimic human behavior with remarkable accuracy. This allows creators to design unique and complex characters that can adapt to different scenarios and interact dynamically with real or virtual environments. These virtual characters are used in video games, movies, virtual reality experiences, and interactive media.
  • Dynamic Environments: GenAI can be used to develop immersive, interactive, and highly detailed virtual worlds. Using sophisticated algorithms, GenAI models can generate realistic landscapes, cityscapes, and interior settings that adapt to the actions and preferences of users in real-time. This allows for the automatic creation of diverse and complex environments, from expansive open-world games to intricate virtual reality simulations, without the need for extensive manual design work.
  • Music and Soundtracks: Leveraging deep learning techniques and vast datasets of musical works, GenAI can generate melodies, harmonies, rhythms, and full compositions that mimic various styles and genres. Composers and producers can use GenAI to explore new creative directions, quickly generate ideas, and even complete entire pieces with minimal manual intervention. GenAI can also tailor music to specific scenes, moods, or themes, making it an invaluable tool for creating dynamic soundtracks for movies, video games, and commercials.

Manufacturing

Manufacturers are using GenAI in multiple areas. GenAI models can generate innovative prototypes to improve product design, predict equipment failures for predictive maintenance, and enhance quality control through real-time defect detection. GenAI can also streamline supply chain management by predicting demand and optimizing inventory and production schedules.

  • Product Design: GenAI can use advanced algorithms to explore a vast range of design possibilities based on specific constraints and performance criteria set by engineers, such as weight, material usage, and structural integrity. GenAI can also simulate and test the performance of these designs under various conditions, ensuring that the final products are both functional and reliable.
  • Process Optimization: GenAI can analyze massive volumes of production data to identify inefficiencies and recommend improvements. By leveraging machine learning algorithms, GenAI can model and simulate manufacturing processes, predicting outcomes and suggesting optimal configurations for equipment and workflows. GenAI can also adapt to real-time changes in production, automatically adjusting processes to maintain optimal performance.
  • Predictive Maintenance: GenAI models can process real-time data from sensors embedded in machines to identify patterns and anomalies indicative of wear and tear or imminent breakdowns. This allows manufacturers to schedule maintenance activities proactively, minimizing unexpected downtime and extending the lifespan of their equipment. 
  • Supply Chain Management: GenAI can predict demand fluctuations, allowing manufacturers to adjust their production schedules and inventory levels accordingly. This reduces the risk of overproduction or stockouts, ensuring that resources are used efficiently. Additionally, generative AI can optimize routing and transportation logistics, identifying the most cost-effective and timely delivery paths. It also helps in supplier selection and management by analyzing performance data to identify the best suppliers and anticipate potential disruptions.

Legal

GenAI is transforming the legal industry by automating document drafting, legal research and review, and contract analysis. It reduces the manual workload for legal professionals by generating and reviewing contracts, analyzing text, and conducting comprehensive legal research.

  • Contract Review: GenAI tools can rapidly scan and analyze complex legal documents and highlight discrepancies, ambiguous terms, and potential pitfalls that might be overlooked during manual reviews. These tools can also compare current contracts against standard templates or past agreements to ensure consistency and fairness.
  • Evidence Analysis: GenAI can comprehensively sift through evidence, flagging pertinent details and organizing them in a way that is easily accessible for legal professionals. By automating much of the labor-intensive process of evidence review, generative AI not only saves time but also increases the accuracy and thoroughness of the analysis.
  • Legal Research: GenAI can automate the process of searching through vast databases of case law, statutes, and legal documents to find relevant information. It can then quickly analyze and interpret the information, identifying pertinent cases, precedents, and legal principles. These tools can also summarize lengthy documents, extract key points, and even predict the relevance of specific legal arguments.
  • Document Drafting: Using advanced natural language processing algorithms, GenAI tools can generate accurate and well-structured documents based on predefined templates and legal standards. These tools can also customize content to meet specific client needs and regulatory requirements.

Information Technology (IT)

Generative AI enhances IT operations by automating coding, testing, and cybersecurity. It provides real-time assistance to developers, optimizes software testing processes, and enhances cybersecurity measures, leading to more efficient and secure IT operations.

  • Code Generation: Generative AI is revolutionizing code generation in the IT sector by automating the writing of software code. Gen AI-powered tools can analyze project requirements and generate high-quality code snippets - or even entire programs - based on predefined specifications and best practices.
  • Automated Testing: Generative AI is transforming automated testing in IT by creating intelligent systems that can design, execute, and analyze tests more efficiently than traditional methods. GenAI-powered testing tools can generate test cases and scripts based on the software’s requirements and user behavior patterns, ensuring comprehensive coverage and uncovering edge cases that might be missed manually. These tools can also adapt and learn from each test cycle, continuously improving their effectiveness and accuracy.
  • Cybersecurity: GenAI-driven systems can analyze vast amounts of data in real time to identify unusual patterns and behaviors that may indicate cyber threats. They can also generate predictive models to anticipate potential vulnerabilities and recommend proactive measures to fortify defenses.
  • IT Infrastructure Management: GenAI can automate the monitoring and maintenance of IT landscapes.  By analyzing data from various infrastructure components, GenAI tools can predict and identify potential issues before they escalate, such as server overloads, network bottlenecks, or hardware failures. They can also optimize resource allocation, balance workloads, and manage energy consumption more effectively.

Enterprise Architecture (EA)

Generative AI significantly enhances enterprise architecture by streamlining and optimizing IT landscapes. It can assist enterprise architects in modeling, planning, and managing complex IT environments, ensuring that systems are efficient, scalable, and aligned with business goals. Key applications include:

  • Automated Documentation: GenAI tools can generate detailed architectural diagrams, data flow charts, and technical specifications by analyzing the existing infrastructure and ongoing changes. This ensures that documentation is current and accurate. Additionally, GenAI can produce insightful reports and summaries, highlighting key architectural elements and their relationships.
  • Predictive Modeling: With GenAI, enterprise architectures (EAs) can analyze vast amounts of historical and real-time data to predict the impact of proposed changes on the IT landscape. GenAI helps EAs forecast specific outcomes based on identified patterns and trends within the data, and make data-driven decisions to align technology strategies with business goals.
  • Resource optimization: By analyzing data on system performance, user demand, and resource consumption, GenAI can identify underutilized resources, forecast future needs, and suggest optimal configurations. This helps EAs ensure that servers, storage, and network resources are used efficiently. Generative AI can also dynamically adjust resource allocation in real time, responding to changing conditions and workloads to maintain optimal performance and availability.
  • Risk Management: GenAI can predict potential vulnerabilities and foresee the impact of cyberattacks, system failures, or compliance breaches. They can also simulate different risk scenarios, allowing EAs to evaluate the effectiveness of different mitigation strategies and prepare contingency plans. Additionally, GenAI can continuously monitor the IT environment for emerging threats, providing real-time alerts and recommendations to address vulnerabilities before they escalate.
  • Scenario Planning: GenAI can generate detailed models of potential scenarios, then predict hypothetical future developments and their impact on the organization. This helps enterprise architects understand a range of possible outcomes and prepare for various contingencies.  GenAI can also dynamically update scenarios as new data becomes available, ensuring that planning remains relevant and adaptive.

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Challenges and Limitations

1. Ethical Considerations

  • Misinformation and Deepfakes
    GenAI can create highly realistic but false content, such as deepfake videos or misleading articles, which can be used to deceive or manipulate public opinion. Addressing this requires the development of tools and policies for detection and regulation.
  • Intellectual Property
    The creation of new content using GenAI raises questions about intellectual property rights, including ownership of AI-generated works and potential infringement on existing copyrighted material.
  • Privacy
    The use of personal data to train GenAI models can raise privacy concerns, particularly if sensitive information is inadvertently revealed or misused.
  • Accountability
    Determining accountability for the actions and outputs of GenAI systems can be challenging, especially in cases where the AI operates autonomously. This includes questions about who is responsible for harmful outcomes or errors.
  • Transparency
    There is a need for transparency in how GenAI models work, including the data they were trained on and the algorithms they use. This helps build trust and ensures that users can understand and challenge the outputs.
  • Control and Autonomy
    Balancing the autonomy of GenAI systems with human control is crucial to prevent unintended consequences and ensure that AI aligns with human values and ethical standards.

2. Technical Challenges

  • Quality and Realism
    Generating high-quality, realistic content consistently can be challenging, especially in complex domains like natural language or high-resolution image synthesis. Ensuring content is not only realistic but also meaningful and accurate requires sophisticated models and large datasets.
  • Data Requirements
    GenAI models often require vast amounts of diverse and high-quality data to train effectively. Acquiring and curating such datasets can be difficult, especially when dealing with specialized or sensitive information.
  • Computational Resources
    Training and deploying GenAI models, particularly deep learning architectures like GANs or transformers, require significant computational power and memory. This can be costly and resource-intensive, limiting accessibility for smaller organizations.
  • Model Complexity and Stability
    Generative models, especially GANs, can be unstable and difficult to train, often suffering from issues like mode collapse, where the model generates limited types of outputs, or the inability to balance the generator and discriminator in GANs.
  • Evaluation Metrics
    Measuring the performance and quality of GenAI outputs is inherently subjective and context-dependent. Developing reliable, objective metrics for evaluating outputs, especially in creative domains, remains a significant challenge.
  • Controlling Outputs
    Guiding GenAI systems to produce specific types of content or adhere to desired stylistic constraints can be challenging. This lack of control can lead to outputs that are unpredictable or not aligned with user expectations.
  • Interpretability and Transparency 
    Due to their complexity, understanding and explaining the decision-making processes of GenAI models can be difficult. This lack of interpretability can make it challenging to trust and verify the outputs.

3. Societal Concerns

  • Misinformation and Deepfakes
    GenAI can create highly convincing fake content, such as videos, images, and text. Such content could be used to spread misinformation, manipulate public opinion, and undermine democratic processes.
  • Privacy Invasion
    GenAI systems can generate data that closely resembles personal information, especially if they are trained on sensitive or personal datasets without consent. This can lead to the unintentional exposure of private information or the creation of realistic but synthetic identities.
  • Intellectual Property and Copyright
    Content creation with GenAI complicates issues around intellectual property rights. There is ongoing debate over the ownership of AI-generated works and the potential infringement on existing copyrighted material, leading to legal and ethical dilemmas.
  • Security and Abuse
    Generative AI can be exploited for malicious purposes, such as generating harmful content, creating convincing phishing emails, or designing new types of cyberattacks.
  • Impact on Culture and Authenticity
    The proliferation of AI-generated content could impact cultural expressions and notions of authenticity, leading to a devaluation of human creativity and artistic efforts. It also raises questions about what constitutes genuine human experiences and creations.

📚 Related: Is Generative AI The Solution For Sustainable IT?

 

Future Trends in Generative AI

Advancements in AI technologies, such as more sophisticated GANs and LLMs, will continue to push the capabilities of GenAI. As research continues to refine algorithms like Generative Adversarial Networks (GANs) and Large Language Models (LLMs), we can expect generative AI systems to produce increasingly realistic and complex outputs.

These models will likely excel in generating high-resolution images, coherent and contextually nuanced text, and even lifelike video and audio content. This heightened realism will not only enhance existing applications but also enable new forms of creative expression and digital content creation.

Another significant trend is the integration of GenAI with quantum computing. Quantum computing's ability to process and analyze data at unprecedented speeds holds the potential to revolutionize how generative models are trained and deployed. The synergy between quantum computing and GenAI could also open entirely new areas of research and application, pushing the boundaries of what is possible with current technology.

📚 Related: Shadow AI

Conclusion

GenAI will transform industries by automating and enhancing creative processes, optimizing workflows, and generating innovative, data-driven solutions to problems.

As this technology continues to evolve, we can expect it to produce increasingly realistic and complex outputs, further blurring the lines between human and machine-generated content.

However, with the help of AI governance, it is crucial to address the ethical, technical, and societal challenges associated with GenAI to ensure its responsible and beneficial use.  

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80% of companies are leveraging generative AI

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FAQs

What is meant by generative AI?

Generative AI refers to a subset of artificial intelligence that focuses on creating new content, such as text, images, music, or entire environments, based on patterns learned from existing data. It uses models like GANs, VAEs, and transformers to generate realistic and original outputs.

Is chatbot a generative AI?

Some chatbots use generative AI, particularly those designed to create dynamic and contextually relevant responses. Examples include advanced conversational agents like OpenAI's ChatGPT, which generate human-like text based on user inputs. However, not all chatbots are generative; many use rule-based or retrieval-based methods.

What is generative AI vs normal AI?

Generative AI focuses on creating new content, while "normal" AI (often referred to as discriminative AI) typically classifies, predicts, or identifies patterns within data. Generative AI models produce outputs like images or text, whereas discriminative models distinguish between different inputs or predict outcomes.

What's the opposite of generative AI?

The opposite of generative AI is discriminative AI. While generative AI creates new data samples, discriminative AI focuses on identifying and classifying existing data. Discriminative models are used for tasks like image recognition, spam detection, and predictive analytics.

Does Siri use generative AI?

Siri primarily uses retrieval-based AI and machine learning for natural language processing and understanding, rather than generative AI. It relies on predefined responses and structured queries to provide answers and perform tasks, rather than generating new and original content on the fly.

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