Generative AI

Definitions

1. AI systems that create new content — text, images, audio, video, code — rather than merely classifying or analyzing existing data. The category that includes ChatGPT, DALL-E, Midjourney, and the existential crisis of every creative professional.

   In plain English: AI that creates new content instead of just analyzing existing content — writing text, making images, composing music, or generating code.

2. The business model of generative AI is still being determined: per-token API pricing, subscription access, enterprise licensing, or embedded in existing products. The cost of inference (running models) remains high enough that many AI features are loss leaders as companies race for market share.

   Example: 'Every SaaS product added a generative AI feature in 2024. Most of them lose money on every API call but hope to retain users with the novelty.'

   Source: business model

Etymology

2014

Ian Goodfellow invents Generative Adversarial Networks (GANs), enabling machines to create realistic images for the first time

2022

ChatGPT, DALL-E 2, and Stable Diffusion bring generative AI to the mainstream, sparking both excitement and existential debate

2023

'Generative AI' becomes the most searched tech term; Goldman Sachs estimates it could add $7 trillion to global GDP

Related Terms

• Large Language Model
• Diffusion Model
• Deepfake