Basic AI Notes for Everyday Users
What is AI, how does it work, and who is leading the industry? Explained simply with minimal technical jargon.
1. A Brief History of AI
AI (Artificial Intelligence) is technology designed to enable computers to think and learn like humans. Although it started around the 1950s, AI suddenly became exceptionally capable after the invention of the Transformer Model by Google in 2017.
Later, in late 2022, OpenAI introduced ChatGPT to the public, officially kickstarting the AI era.
2. Leading Companies in the AI Industry
- OpenAIThe creator of ChatGPT, widely regarded as the pioneer of the AI era. Their GPT-4o model is currently one of the most capable models available.
- GoogleThe original inventor of Transformer technology, now focusing primarily on their Gemini AI. They are integrating AI into YouTube, Docs, Gmail, and more.
- AnthropicFounded by former OpenAI researchers, they created the Claude AI. Claude focuses heavily on generating human-like text and prioritizing safety.
- Meta (Facebook)Creator of Llama, an open-source AI (free for anyone to use), helping to democratize AI technology for everyone.
3. Understanding Tokens (The Language of AI)
AIs do not read text letter by letter or word by word. They break text down into smaller pieces called Tokens (sub-words). Generally, 1,000 English words equal about 1,300 tokens.
Input Token
The tokens consumed when you ask a question or provide files/text to the AI. Input tokens are generally cheaper.
Output Token
The tokens generated when the AI replies to you. Since the AI has to compute and generate this text, Output tokens are more expensive than Input tokens.
4. Context Window (AI's Short-term Memory)
The Context Window is the maximum amount of text (measured in tokens) that an AI can remember and process at one time.
For example, an AI with a 128k context window can read an entire book at once and answer questions about it. If your conversation exceeds the context window limit, the AI will start forgetting the earlier parts of the conversation.
5. Pros and Cons for Everyday Users
Pros
- •Saves time on tasks (e.g., writing essays, emails)
- •Easily translates multiple languages
- •Helps with brainstorming new ideas
- •Assists with coding and data analysis
Cons
- •Hallucination: Confidently stating incorrect information as if it were true
- •Lacks up-to-date information (unless connected to real-time data)
- •Potential privacy risks if you input personal information
- •Lacks human emotions and common sense
6. How to Talk to AI (Prompt Engineering)
To get the best results from an AI, you need to write good instructions, which is called a Prompt. Don't treat AI like a Google Search; treat it like a smart intern.
Tips for Good Prompts
- Be Specific: Instead of 'Write a story', use 'Write a short sci-fi story about a robot learning to cook'.
- Give it a Role: Start with 'Act as an expert math teacher' to get better-explained answers.
- Provide Context: Give the AI background information so it understands exactly what you need.
7. Beyond Text (Images, Audio, and Video)
AI is not just for chatting and writing text. It can understand and generate different types of media.
- •Image GenerationAI can create highly realistic images from text descriptions. Popular tools include Midjourney, DALL-E, and Stable Diffusion.
- •Voice & AudioAI can clone voices or generate realistic speech and music. ElevenLabs is famous for voice generation, and Suno for music.
- •Video GenerationAI is now learning to create videos from text. Tools like OpenAI's Sora and Runway are leading this new frontier.
8. Running AI on Your Own Computer (Local LLMs)
Did you know you don't always need the internet to use AI? You can download and run AI models directly on your own computer.
- •Total PrivacyBecause the AI runs on your machine, your data (like private documents or chats) never leaves your computer.
- •No Internet RequiredYou can use it completely offline, making it perfect for traveling or working without a connection.
- •Free to UseOnce you download a model (like Meta's Llama), you can chat with it as much as you want without paying subscription fees.
Popular beginner-friendly tools to do this include LM Studio and Ollama.