Foundational Concepts
Generative AI
AI that creates new content — text, images, code, audio, or video — rather than just analysing existing data.
Definition
Generative AI is a category of artificial intelligence that produces entirely new outputs rather than simply classifying or searching existing information. When you ask an AI to write a proposal, create a product image, or produce a report summary, that is generative AI at work. It works by learning the patterns and structure of existing human-created content and using those patterns to generate plausible new examples. The technology has advanced rapidly, and the outputs are now often indistinguishable from human-created work.
Why this matters for your business
Generative AI is already reducing the time-to-first-draft for marketing copy, tender responses, internal reports, and customer communications by 60–80% in many organisations. The key risk is over-reliance without human review.
Related Terms
Large Language Model (LLM)
A type of AI trained on vast amounts of text that can read, write, summarise, and reason with language.
Artificial Intelligence (AI)
The broad field of building computer systems that can perform tasks usually requiring human intelligence.
Hallucination
When an AI confidently produces false information it has invented.
Heard enough terminology — ready to talk outcomes?
We translate AI concepts into measurable business results. No upfront fees — you pay only when independently verified results are delivered.
Disclaimer
This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.
Document reference: ISO_webpage_knowledge-base_glossary_v1
Last modified: 29 March 2026
Knowledge Base·Foundational Concepts·Generative AI