AI Foundations
Module 01
The Story Begins
Meet ThreadCo: ThreadCo sells custom-printed T-shirts online. They have 3 staff, 2,000 products, and 500 customer emails per week -- most asking "where is my order?" or "can I get this in blue?" The founder, Maya, wants to use AI to handle the repetitive work. Before building anything, the team needs to understand what generative AI can actually do for a small e-commerce business.

What is Generative AI?

Generative AI refers to machine learning systems that learn patterns from data and generate new content -- text, code, images, audio -- that did not exist before. Understanding the category before diving into specific tools is essential for any practitioner.

Definition

Generative AI models are trained to model a probability distribution over data. At inference time, they sample from that distribution to produce novel outputs that resemble -- but are not copies of -- their training data.

Key Model Families

Large Language Models (LLMs) for text and code. Diffusion models for images and video. Multimodal models that cross modalities. Each uses different architectures but shares the generative training paradigm.

How it Differs from Traditional AI

Traditional ML classifies or predicts from fixed categories. Generative AI produces open-ended outputs. This makes it far more flexible but also harder to evaluate, constrain, and guarantee correctness for.

Where Value is Created

Generative AI creates value by accelerating human tasks that previously required scarce expertise: writing, coding, analysis, summarisation, planning. The economic impact is in throughput and access, not replacement of judgment.

The Generative AI Landscape

Model Types and Their Primary Use Cases
LARGE LANGUAGE MODELS Text generation Code completion Reasoning Q&A / Chat GPT-4o, Gemini, Llama DIFFUSION MODELS Image generation Video synthesis Audio creation Image editing DALL-E, Midjourney CODE MODELS Autocomplete Agentic coding Test generation Refactoring Windsurf, Cursor MULTIMODAL MODELS Vision + text Audio + text Cross-modal Any-to-any GPT-4o, Gemini 1.5, Llama 3
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Training Tip

This programme focuses on LLMs and code generation tools. Complete the AI Foundations track first, then choose your tool track based on your role and the technology your organisation has adopted.