Everything You Need To Know About Generative AI

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August 24, 2023
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Have you heard about ChatGPT or Midjourney? We bet you have. Here’s everything you need to know about generative AI, including how it works and how you can use it for your business.

What Is Generative AI?

Generative AI is a type of AI model that is designed to generate new content after being trained on existing data. Generative AI learns patterns and structures from input data and creates content that is similar to it. Such models can generate a wide variety of output, whether it's text, images, video, music, code, or other forms of data.

There are several approaches to Generative AI, with Generative Adversarial Network (GAN) being one of them. This architecture consists of two neural networks, the generator and the discriminator. While the generator creates new data, the discriminator tries to distinguish between real and generated data, helping the generator create more realistic, high-quality output. 

Generative AI has a wide range of applications such as creating human-like text, composing original music, and generating realistic images. It can also be used to create additional training data for machine learning models or even generate molecular structures for potential new drugs.

How Does Generative AI Work?

The general process of training generative AI models so that they can create novel data involves the following steps:

1. Data collection and preprocessing

The first step of the process is gathering a dataset that consists of the kind of data you want your model to generate. 

2. Model architecture selection

Next, choose an appropriate generative model architecture based on the type of data you're working with such as GANs that we mentioned above, VAEs, RNNs, or Transformers.

3. Training

Feed the training data into the model and update its internal parameters using optimization techniques like gradient descent. If you choose GAN, the generator and discriminator are trained iteratively in a competitive manner.

4. Loss function

Define a loss function that guides the model towards generating better output. In GANs, for example, the generator aims to minimize the discriminator's ability to distinguish between real and generated data.

5. Sampling

Once the model is trained, you can sample from the learned distribution to generate new data. For instance, in text generation, you can provide a seed text, and the model will predict the next words to generate a coherent continuation.

6. Fine-tuning and iteration

Depending on the quality of the generated output, you can fine-tune the model's parameters or iterate on the training process to achieve better results.

Generative AI Vs Predictive AI

Generative AI and predictive AI are two approaches to artificial intelligence that serve different purposes. While generative AI is used to create new content, predictive AI only makes informed predictions based on historical data. Generative AI learns the underlying patterns and structures of the training data to create similar but novel output such as text, music, video, and others. On the other hand, predictive AI learns the relationship between input features and target outcome to make data-based predictions about new data points. This makes it a great tool for stock price prediction, weather forecasting, or medical diagnosis. 

Generative AI Use Cases

Generative AI has found various use cases in the business world. Here are some of them:

Content generation

Generative AI can automate the creation of content for marketing, social media, and other communication channels. It can generate blog posts, product descriptions, social media captions, and even entire articles, reducing the time and effort required for content creation.


Businesses can use generative AI to create designs, logos, and graphics. This can be particularly useful for generating variations of designs to choose from, saving time, and helping with effective A/B testing.


Generative AI can assist in crafting personalized marketing messages and recommendations based on user preferences and behavior. This leads to hyper personalized customer experience and improved customer engagement.

Product prototyping

In industries like manufacturing and product design, generative AI can help generate multiple design prototypes based on specified criteria, enabling faster iteration and optimization of product designs.

Audio generation

Generative AI audio tools can compose original music tracks, sounds, and audio effects. They can be used for video game soundtracks, background music, and other creative tasks.

Chatbots and virtual assistants

Some of the most advanced chatbots operate on generative AI. They can engage in natural conversations with users, provide relevant assistance, and enhance customer support on websites and messaging platforms. 

Data augmentation for machine learning

In data science, generative AI can help enhance limited datasets with new examples, which makes training more effective and improves the performance of machine learning models.

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