5 Critical Facts You Need to Know About AI

by Tanya Kennedy Luminati Posted on October 23, 2024

Artificial Intelligence (AI) is not just a buzzword—it’s a technological revolution transforming how we live, work, and innovate. From automating routine tasks to delivering groundbreaking insights, AI is becoming indispensable in today’s world. 

But with so much hype and noise, it’s easy to feel lost in the excitement. What’s truly important, and what’s just marketing speak? Whether you’re exploring AI for the first time or looking to expand its use in your organization, understanding the key facts is crucial to making informed decisions.

Let’s explore five critical insights that will help you harness AI’s potential with clarity and confidence.

One of the most important things to understand about AI is that the term itself is not regulated or validated in any way. Essentially, anyone can slap the label “AI-enabled” onto their product, even if it’s not using any true AI technologies. For example, a simple chatbot that follows pre-programmed scripts (“if A then B…”) may be marketed as AI but without true machine learning or natural language processing capabilities. A more sophisticated AI chatbot might employ generative AI to produce more natural sounding answers, access all the information the model was trained on, and use its prompts and specific documents to generate a response specific to the field chatbot is designed for. 

It’s critical to ask the right questions when evaluating products or services marketed as AI-powered. What kind of AI are they using? Is it machine learning, natural language processing, or something else? Which core AI technology is it built upon? If you’re investing in AI, you want to make sure you’re getting access to the full power and potential that true AI systems provide.

Generative AI, the type of AI used to create text, images, and even code (such as ChatGPT), is currently getting the lion’s share of the attention. However, it’s important to know that generative AI is just one subset of a much broader AI ecosystem. “AI” is an incredibly broad term, encompassing everything from how Netflix recommends TV shows, to how a Roomba figures out where to vacuum, to the technology that powers self-driving cars. 

The most common applications of AI are:

While generative AI may be the most accessible for everyday use right now, it’s only a chunk of the iceberg. 

Although many companies claim to be revolutionizing generative AI, the reality is that just a handful of major players are truly leading the charge. Tech giants like OpenAI, Google DeepMind, and Anthropic are responsible for much of the core AI technology that drives today’s innovations. These companies are at the forefront of AI research and development, creating the foundational tools that countless others build upon

While these big players provide the critical building blocks, a growing number of companies across various industries are using these technologies to create unique and specialized solutions. These smaller players may not be developing the core AI algorithms, but they are applying AI in innovative ways to solve real-world challenges in fields like healthcare, marketing, finance, and more. By customizing and adapting AI to meet specific needs, they bring even more value to the table, pushing AI into new and exciting directions.

So when you’re evaluating genAI solutions, don’t be surprised or discouraged if the product is built on technology from these big players. In fact, that often means the solution is grounded in cutting-edge, reliable advancements. What matters is how that technology is being adapted and enhanced to deliver value to your organization. With that being said, you should absolutely ask what core AI technology is being used to power their systems. It matters!

It’s been said many times about many things that your outputs are only as good as your inputs. The same is true for generative AI: the prompt, i.e., what you input into the AI system, determines the quality and relevance of the output you get back. This is why “prompt engineering” has become a new skill that’s highly valued in the AI space.

For example, if you ask a generic question, you’ll likely get a generic answer. However, a well-crafted, detailed prompt can lead to more nuanced, sophisticated, and useful results. Experimenting with different ways to phrase your prompts and providing specific context can help you get the most accurate and helpful responses from generative AI. For a deeper dive into AI prompting, check out our recent blog post on Creating a Custom GPT (the same concepts from the post apply to standard prompting!)

AI is a powerful tool, but even the most advanced systems can make mistakes. Whether it’s generating inaccurate information, misinterpreting data patterns, or offering biased results, AI is not infallible. That’s why verification is key. The best practice isn’t to assume AI’s outputs are always right—it’s to treat them as one step in your decision-making process.

Generative AI tools like ChatGPT, for instance, can aggregate vast amounts of information, but they sometimes pull together half-truths or inaccuracies from multiple sources. Machine learning systems can misread data trends, and autonomous technologies, such as self-driving cars, have demonstrated their limitations. Whether you’re using AI for content creation, data analysis, or decision-making, always cross-check the results and ensure accuracy before acting upon them.

AI has the potential to revolutionize industries and transform how we work, but understanding its strengths, limitations, and how to use it effectively is key. Take the time to ask the right questions, experiment with different AI tools, and always verify your results. The future of AI is bright, and with the right approach, you can harness its power to drive innovation and efficiency in your organization. So dive in, experiment, and see how AI can enhance your workflows!

To learn more about the ways that Matrix Group is leveraging AI, check out some of our other recent blog posts, and if you are curious about the custom AI solutions we are developing, contact our solutions team at solutions@matrixgroup.net 

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