What is AI and what
are the different types?

The current AI boom has created a landscape filled with confusion and misconceptions about artificial intelligence. Even those working closely with technology often find it hard to keep pace with new discoveries and emerging trends.
AI has already embedded itself into many of the tools we use, sometimes in obvious ways, sometimes running quietly in the background. Most of us use it every day without really thinking about it. But how many of us can explain what AI actually is or how it works?
In this blog, weâll show you how to distinguish between different types of AI and select the perfect model for any task.
What is AI?
At its most fundamental level, AI is exactly what it sounds likeâtechnology built with the intention of mimicking human intelligence to some degree. This fascination with creating artificial intelligence isn’t new; from HAL 9000 and Frankenstein to the intricate automata of ancient civilisations, humanity has long found fascination in bringing intelligent life to inanimate objects.
The formal research into AI began in earnest during the 1950s with pioneers like Alan Turing laying the theoretical groundwork for machine intelligence. Since then, we’ve witnessed remarkable breakthroughs that have captured public imagination, such as Deep Blue’s chess victory over world champion Garry Kasparov.
Today, AI is rapidly changing how businesses approach problem solving and workflow automation, while allowing for never-before-possible solutions to specialised tasks. However, AI is an incredibly broad and ever-expanding group of technologies and in order to figure out which type of AI best suits your needs, first itâs important to understand the different types of and what makes each of them unique. In the next section, weâll outline different AI architectures and explain when theyâre the right choice for your task.
Different types of AI

Infographic
A high-level view of how different types of AI overlap and interact.
You may have heard the terms âAIâ, âMachine Learning (ML)â, âNatural Language Processing (NLP)’, and âGenerative (Gen) AIâ thrown about interchangeably. However, these different âfamiliesâ of AI models have key distinctions, overlaps, strengths, and weaknesses that are important to keep in mind when selecting which model to use.
Machine Learning (ML)
At its core, machine learning (ML) encompasses AI systems that learn from data rather than rely on pre-programmed instructions.
Consider the difference between a traditional toaster and a (hypothetical) ML-powered toaster. Your everyday toaster follows rigid programmingâpress the lever, wait for the timer, receive your toast. It’s reliable but inflexible. Now imagine a toaster equipped with “too burnt” and “still-just-bread” buttons. Initially, it produces random results, but with each piece of feedback, it adjusts its timing. After a week of this iterative process, it has learned your perfect toasting preference without anyone explicitly programming that knowledge into its system.
This iterative learning process forms the backbone of all machine learning models. Whether through simple human feedback, like the thumbs up and down buttons you see after ChatGPT responses, or sophisticated loss functions that measure output accuracy, these systems are capable of continuously refining their performance.
ML is present in a wide range of tools, from those that help rank or organise information, to systems that spot trends and patterns in large datasets. It has helped automate tasks that once depended entirely on human intuition and expertise.
Neural Networks and Deep Learning
In humanity’s pursuit of artificial intelligence that rivals or exceeds natural cognitive abilities, researchers turned to algorithms that mirror the shape of the human brain. The perceptron, conceptualised in 1943 and brought to life in 1957, is a simple mathematical function that acts as a single âneuronâ. When these âneuronsâ are combined in great quantities, they are able to learn increasingly complex representations of data. The logic is simple: more perceptrons (or, more âbrain cellsâ) should entail more sophisticated data interpretation.
For a long time, limited computing power made it hard to train neural networksâthe parameters of each perceptron need to be updated with each training iteration. (For example, a âsmallâ neural network with 5 layers of 100 perceptrons per layer, would be composed of over 40,000 parameters!) The rise of deep learning was made possible not just by improved algorithms, but by dramatic advances in computing hardwareâespecially GPUsâwhich enabled the training of large, layered neural networks on massive datasets, driving the AI breakthroughs we see today.
Neural networks are the building blocks upon which the other types of architectures in this blog are built, and they can be found in a wide range of tools, from image generators to large language models.
Natural Language Processing (NLP)
Natural language processing (NLP) is focused on understanding, analysing, and generating human language in all its complexity. From grammar and sentence structure to semantic meaning and speech recognition, NLP models tackle the full spectrum of linguistic challenges. These systems span an impressive range, from simple decision trees handling basic syntax to sophisticated models like GPT-4 with its estimated 1.8 trillion parameters.
Given language’s central role in human communication, NLP has become the category of AI technology that most people encounter daily. Whether you’re asking Siri a question, dictating notes on your phone, relying on auto-complete suggestions, or seeing those familiar blue-underline grammar corrections, you’re experiencing NLP at work.
Large Language Models (LLMs)
The type of NLP model youâre probably most familiar with is the Large Language Model (LLM). LLMs stand apart from traditional NLP approaches through their massive scale, employing billions (or trillions!) of parameters and vast training datasets to capture the intricate complexities of human communication. This ambitious scope stems from a fundamental design philosophy rooted in neural network architectureâif AI systems are modelled on the human brain and aim to learn human-like language capabilities, then matching the brain’s immense scale becomes essential. With approximately 86 billion neurons and 100 trillion synapses powering human cognition, even today’s most advanced LLMs are still working toward approaching this biological benchmark.
LLM-powered chatbots such as Claude and chatGPT are already proving indispensable across industries. Their practical impact is reshaping modern workflows, streamlining everything from content creation to complex problem-solving.
Generative AI (GenAI)
Generative AI, a subset of machine learning, is characterised by its capacity to produce novel outputs (such as text, images, audio, and video) by leveraging existing patterns found within its training data. Often called by its shorthand name, âGenAIâ, this subcategory of AI can be tricky to define.
In short, GenAI encompasses models that generate ânewâ outputs given an input. For example, you can ask (prompt) ChatGPT to âWrite a poem about a duckâ, and it will âgenerateâ new text (based purely on your prompt) – this is GenAI.
Conversely, using your face to unlock your phone is not GenAI, as it isnât generating a tangible output – instead it is classifying your facial features and ensuring that they match the facial features stored when you initially set up Face ID.
Agents
So far, weâve looked at models that generate or analyse outputs. Agentic AI systems distinguish themselves through their capacity to autonomously make decisions and execute actions using accessible tools and knowledge bases. While a standard LLM cannot answer real-time queries like “What is the NASDAQ currently valued at?” due to its reliance on historical training data, an agent processes such requests by leveraging available toolsâperforming web searches or accessing live market indices directly. These interactions build the agent’s knowledge base, enabling it to handle comparative queries such as year-over-year market analysis. The systems can operate continuously, responding to real-time triggers like automated trading instructions based on predetermined price thresholds.
Similarly, self-driving vehicles exemplify agentic AI through their control over multiple driving mechanisms, processing inputs from speed sensors, cameras, and GPS systems to make rapid decisions as conditions change. This dynamic responsiveness makes agentic AI systems particularly valuable for applications demanding complex analysis and immediate action execution in changing environments.
Why this matters
The AI landscape may seem overwhelming, but understanding these fundamental distinctionsâfrom different types of AI to the specific capabilities of encoders, decoders, and agentsâprovides a practical framework for navigating your options. Each AI architecture serves distinct purposes, whether you need generative capabilities, analytical processing, or autonomous decision-making systems. You are now equipped with the knowledge you need to confidently understand what colleagues and industry professionals mean when terms like “agent” “GenAI,” or “LLM” enter the conversation. By matching your specific requirements to the appropriate AI type, you can cut through the confusion and select tools that genuinely enhance your workflow rather than add unnecessary complexity.






