Artificial intelligence
Data
AI and Machine Learning
How Does AI Work? Basics to Know
How Does AI Work? Basics to Know
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What goes on behind the scenes of artificial intelligence as we know it? Learn more about how AI-driven systems and products work.
[Featured Image] A machine learning engineer works at a computer, developing an artificial intelligence application.
Artificial intelligence (AI) enables machines to learn from data and recognize patterns in it in order to do tasks more efficiently and effectively. It powers a wide range of products and services like Netflix’s algorithm that recommends TV shows and movies based on your preferences or Waymo's fleet of self-driving cars.
But what goes on behind the scenes? How does AI actually work? Read on to learn more about the basics of artificial intelligence.
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Artificial intelligence definition: What is AI?
Artificial intelligence is the theory and discipline of programming computer systems to learn from and spot patterns in data sets. These advanced algorithms and models perform human tasks, like recognizing speech or images and making decisions. AI relies on machine learning and neural networks, as well as more complicated concepts like deep learning and natural language processing.
AI is a complex technology with hundreds, if not thousands, of possibilities for creating solutions for businesses across industries. It enables machine learning algorithms that make our lives easier or better by doing things like automating tasks, powering virtual assistants, and generating transcripts of Zoom calls. With generative AI, we can create prompts to request content from processors like ChatGPT or Google Gemini.
How does AI work?
In order to create AI, you need to: define the problem, determine the outcomes, organize the data set, choose the appropriate technology, and then test solutions. If the intended solution does not work, you can continue experimenting to reach the desired outcome.
Below, we’ll go through five steps that illustrate how AI works: inputs, processing, outcomes, adjustments, and assessments.
Input
Data is first collected from various sources in the form of text, audio, video, and more. It is sorted into categories, such as those that can be read by the algorithms and those that cannot. You would then create the protocol and criteria for which data will be processed and used for specific outcomes.
Processing
Once data is gathered and inputted, the next step is to allow AI to decide what to do with the data. The AI sorts and deciphers the data using patterns it has been programmed to learn until it recognizes similar patterns in the data that is being filtered into the system.
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Outcomes
After the processing step, the AI can use those complex patterns to predict outcomes in customer behavior and market trends. In this step, the AI is programmed to decide whether specific data is a “pass” or “fail”—in other words, does it match previous patterns? That determines outcomes that can be used to make decisions.
Adjustments
When data sets are considered a “fail,” AI learns from that mistake, and the process is repeated again under different conditions. It may be that the algorithm’s rules must be adjusted to suit the data set in question or that the algorithm needs slight alteration. In this step, you might return to the outcomes step to better align with the current data set’s conditions.
Assessments
The final step for AI to complete an assigned task is assessment. Here, the AI technology synthesizes insights gained from the data set to make predictions based on the outcomes and adjustments. Feedback generated from the adjustments can be incorporated into the algorithm before moving forward.
How does generative AI work?
Generative AI is powered by large language models (LLMs), which are complex machine-learning models created from algorithms trained on massive data sets with deep learning. This allows generative AI programs, such as ChatGPT or Microsoft Copilot, to produce or generate new content based on their training sets rather than just predict patterns in them.
While the applications and technology used to power generative AI are new, many of their core concepts and processes have existed for much longer.


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