Following on from our recent blog on the latest technology trends within financial services, we received several questions about the basics of Artificial Intelligence (AI). As is often the case with emerging technology (key to understanding concepts and systems that have been around for many years), early successful products (such as ChatGPT) can be used as generic terms. Add to this the ubiquitous trend of creating acronyms in technology and things can quickly become confusing. We have answered five questions to give you helpful definitions of the key terms used in the latest AI technology.
1. What is AI?
In short, it is the creation of intelligent systems that can perform tasks that would usually need human intelligence to complete.
2. What is Machine Learning?
Machine Learning is a branch of AI that enables computers to learn without the need for explicit programming. Machine learning is enabled through the creation of algorithms (logical steps and processes) that can then be used to analyse data, spot repeating patterns, and then make appropriate decisions or predictions. Many AI systems utilise Machine Learning to improve and increase the accuracy of their output over time. Don’t forget, from our article about financial services trends, AI is not always right and can be prone to hallucinations.
3. What is generative AI?
Generative AI is the process of using a system to create a specific output such as words or pictures. Generative AI systems are usually trained by processing large amounts of data and using this data set to create new outputs based on some form of human user input request.
4. What is a Large Language Model (LLM)?
An LLM is a system trained on extensive text data to understand and generate human-like text. It can perform tasks such as answering questions, writing articles, and engaging in conversation in implementations such as Chat Bots. ChatGPT is an example of an LLM. Also, as we are breaking down acronyms, in respect to ChatGPT, GPT stands for Generative Pre-trained Transformer which belongs to the Natural Language Processor part of AI (NLP).
5. What is Natural Language Processing (NLP)?
NLP (Natural Language Processing) is a branch of AI that deals with computers understanding and generating human language. It encompasses tasks like language understanding, generation, interaction, and information retrieval. NLP combines linguistics, computer science, and machine learning techniques to enable machines to interact with humans using natural language.
It’s all in the detail
In summary, whether you are looking to leverage AI within your financial service business, or your investment strategy includes companies working in these areas, it is crucial to understand the underlying detail. It is also important to recognise where AI is being used to augment already established products such as Microsoft’s Integration of ChatGPT technology into Office, for example using the name Copilot.