AI Fundamentals · Guide 3 of 35

What Is Generative AI?

Learn what generative models produce, where they help, and how to evaluate outputs without confusing fluency with accuracy.

BeginnerAbout 5 min readPractical exercise

Before you start: Training and inference. Reading time is an estimate; allow extra time for practice.

What you’ll learn

  • Choose between classification, retrieval and generation for a task.
  • Explain why a plausible draft may add unsupported facts.
  • Review a generated draft against source facts and a checkable contract.
  • Define when a feature should ask for information or require human review.
On this page

Producing an output instead of selecting a label

Imagine turning three internal release notes into an announcement customers can read. There is no single stored paragraph to copy, and many phrasings could work. Generation can compose that paragraph, but the freedom to choose wording also creates opportunities to change the facts.

Generative AI produces content such as text, images, audio or code using patterns learned from data. A classifier might assign “billing” to a ticket. A generative model might write a draft reply. Both can be useful, but a generated reply has many possible errors that a small set of labels does not: unsupported promises, invented amounts, missing conditions and inappropriate tone.

Generation is also different from retrieval. Search returns existing material; generation constructs an output. Products often combine them by retrieving documents and asking a model to draft an answer from those documents. The answer still needs checking. A link displayed beside a paragraph does not establish that the linked source supports every claim.

Make a draft feature testable

Consider a tool that turns release notes into a short announcement. Define the audience, length, allowed source material and facts that must remain unchanged. Specify that the model must not invent availability dates or pricing. Give a human editor the original notes alongside the draft so they can compare them.

Evaluate several kinds of input: a normal release, notes containing only a bug fix, contradictory dates and a release with no user-visible changes. A good feature should sometimes say that the input is insufficient. Requiring a confident announcement for every input encourages unsupported additions.

An output contract for a release-note draft
Input facts:
- Export now supports CSV.
- Available to all existing accounts.
- No launch date supplied.

Expected properties:
- Mention CSV export.
- Preserve the audience scope.
- Do not invent a date, price or performance claim.
- Return a draft for review, not a published announcement.

These properties can become review criteria. They are more useful than asking whether a draft merely sounds professional.

Understand variation and uncertainty

Many generation systems select among possible continuations, so repeated requests can differ. Settings that reduce sampling variation may make output more predictable, but they do not turn an incorrect assumption into a fact. Model or service updates can also change results. Record enough version and configuration information to reproduce an investigation where possible.

Use deterministic checks for requirements that software can check directly. Validate JSON, required fields, length and allowed values. Semantic claims require stronger evidence: compare against trusted source data, run generated code in an appropriate test environment, or involve a knowledgeable reviewer.

Choose where generation belongs

Drafting, explaining and suggesting are often easier starting points than autonomous publishing or account changes. Keep a clear boundary between a proposal and an action. A model-generated refund message must not itself authorize a refund, and generated SQL must not be executed against production simply because it looks plausible.

Consider privacy, provenance and rights when selecting inputs and publishing outputs. Avoid uploading confidential material without an approved processing arrangement. For consequential decisions, define who checks the output and what happens when evidence is missing. Quality is a property of the whole workflow, not just fluent text.

Review one draft claim by claim

Apply the release-note contract to this fictional draft: “Starting Friday, all existing accounts can export CSV files twice as fast.” The sentence is short and polished, yet it contains two unsupported additions. Review each factual claim separately instead of giving the sentence a single impressionistic quality score.

A supported revision is “CSV export is now available to all existing accounts.” If the announcement genuinely needs a launch date, the feature should request that missing fact. The review can check fidelity to supplied notes; it cannot establish that the notes themselves are accurate or that the feature works. Those require product evidence and testing.

Generation learns patterns that make a continuation plausible for its input. It does not require every phrase to correspond to a source fact. For creative writing, invented details may be welcome; for a release announcement, the contract limits that freedom. Decide which properties are creative choices and which must be preserved exactly before generating.

Reviewing the fictional announcement
ClaimEvidence in the supplied notesDecision
CSV export is supportedExplicitly suppliedKeep
All existing accounts have accessExplicitly suppliedKeep the scope
Starting FridayNo launch date suppliedRemove or request the date
Twice as fastNo performance result suppliedRemove; a fluent comparison is not a measurement
Put it into practice

Try it yourself

Summarize this fictional bug report under a contract you write: “Export shows a blank file after I select CSV. I tried twice. I do not know the browser version.” Include the allowed facts, missing details and one request for more information.

Show hint

A successful summary preserves the blank-file observation and two attempts, does not invent a root cause or browser version, and asks for reproducible steps or environment details. Compare each factual clause with the report. This checks fidelity, not whether the reported failure can actually be reproduced.

Optional practice

Check your understanding

5 questions to revisit the ideas. No score is saved, and you can retry. This is separate from Skill Quiz; it does not award XP or unlock guides.

1. Which operation is generation?
2. The notes say CSV export is available, but the draft says it is twice as fast. What should the reviewer do?
3. Reducing sampling variation makes a draft repeat more consistently. What follows?
4. An announcement must include a launch date, but none is supplied. Which contract is most useful?
5. A generated reply offers a customer a refund. What authorizes the actual refund?

Sources & further reading

Primary references for the concepts in this guide. Examples and exercises are illustrative; verify provider-specific behaviour against the version you use.