Artificial Intelligence 101

Understanding Artificial Intelligence in Plain English

Navigating the world of AI can feel like learning a new language. This guide breaks down common AI terms into plain English, so you can understand how AI can benefit your business.

Key AI Terms Explained

Artificial Intelligence (AI)

Computer systems that can perform tasks that typically require human intelligence, like recognising speech, making decisions, or understanding images. Think of it as teaching computers to think and learn like humans do.

Machine Learning (ML)

A way of teaching computers to learn patterns from data without explicitly programming every single instruction. It’s like showing a child thousands of pictures of cats until they can recognise a cat on their own.

Deep Learning

A more advanced type of machine learning that mimics how the human brain works, using layers of artificial “neurons” to process information. It’s particularly good at tasks like image recognition and language understanding.

Large Language Model (LLM)

AI systems trained on massive amounts of text to understand and generate human-like language. Examples include ChatGPT, Claude, and Bard. They’re like incredibly well-read assistants that can help with writing, answering questions, and explaining concepts.

Generative AI

AI that creates new content—whether that’s text, images, music, or code—rather than just analysing existing information. It’s like having a creative assistant that can write stories, design logos, or compose music.

Automation

Using AI to perform tasks automatically without human intervention. This could be anything from sorting emails to managing inventory or scheduling appointments.

Personalisation

Using AI to tailor experiences, content, or recommendations to individual users based on their behaviour and preferences. Think Netflix recommendations or personalised shopping suggestions.

Predictive Analytics

Using AI to analyse data and predict future trends, behaviours, or outcomes. Businesses use this for everything from forecasting sales to predicting equipment failures.

Chatbot

An AI-powered program that can have conversations with humans through text or speech. They’re commonly used for customer service, helping visitors navigate websites, or answering frequently asked questions.

What AI Can (and Can’t Do)

AI is a powerful tool, but it’s important to understand its capabilities and limitations. Here’s a realistic overview for your business:

AI Can

– Automate repetitive tasks (e.g., data entry, scheduling)
– Analyse large datasets for insights and trends
– Personalise customer experiences (e.g., recommendations)
– Improve decision-making with data-driven suggestions
– Enhance efficiency and productivity across operations
– Provide 24/7 customer support through chatbots

AI Can’t (Yet!)

– Replace genuine human creativity and empathy
– Understand complex emotions or nuanced contexts
– Make strategic decisions without human oversight
– Function perfectly in completely unpredictable situations
– Guarantee 100% error-free results
– Solve problems that require true common sense reasoning

Getting Started with AI

Understanding these terms is just the beginning. AI is rapidly evolving, and new applications are emerging constantly. The key is to start with simple, practical applications that can genuinely help your business or daily life, rather than getting caught up in the hype.
Remember: AI is a tool to augment human capabilities, not replace human judgement. The most successful AI implementations combine the efficiency of machines with the creativity, empathy, and critical thinking that only humans can provide.

Last updated: July 2025

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