Last update: 27/06/2025
The release of ChatGPT in 2022 took the world by storm, turning generative AI, a concept that once felt like sci-fi, into a reality that’s accessible to everyone. Since then, generative AI has rapidly transformed businesses, with one-third of organizations now using it in at least one function (McKinsey). But what exactly is generative AI meaning, how does it work, and how can it benefit your business? In this post, we’ll dive into everything you need to know about this disruptive technology.
Generative AI, or gen AI, is a form of artificial intelligence designed to create original content - such as text, images, audio, video, or even software code - in response to user prompts. Unlike traditional AI models that focus on classification or prediction, generative AI goes a step further by producing its own content with a human-like understanding of language and context.
At its core, generative AI relies on advanced deep learning algorithms, which feature artificial neural networks that mimic the human brain’s ability to learn and make decisions. This is a similarity between generative AI vs predictive AI. However, these two branches of AI differ in how they use data and for what purpose. While predictive AI analyzes historical data to identify patterns and predict trends, generative AI analyzes vast amounts of data to create novel content.
