What is artificial intelligence?
Artificial intelligence (AI) is software that performs tasks that normally need human thinking. Think of recognising patterns, understanding language, making decisions and learning from examples.
The word artificial says that people built this intelligence. AI runs on algorithms: mathematical instructions that a computer follows step by step to arrive at a result.
The term is seventy years old. Researcher John McCarthy used artificial intelligence as the name of a summer workshop at Dartmouth College in 1956. By now you use AI every day: the spam filter in your email, the route planner on your phone and the recommendations in an online shop are all forms of artificial intelligence.
How does AI work?
Modern AI works with machine learning: you give a computer large amounts of examples and it discovers the patterns in them by itself. So you write no rule for each situation.
An example: you want a computer to recognise photos of cats. With fixed rules ("pointed ears, whiskers and a tail") you get stuck, because there are thousands of variations.
With machine learning you give the computer hundreds of thousands of photos with and without a cat. The system discovers by itself which features set a cat apart from other animals. More and better examples generally give a better result.
Neural networks are the engine behind this approach. They are loosely based on the human brain: layers of nodes that pass on and process information. Each node does a small calculation and together they produce a result.
Deep learning is machine learning with neural networks that consist of many layers. That lets the system recognise complicated patterns in text, images, sound and video.
What is the difference between AI, machine learning and deep learning?
AI is the field, machine learning is a method within AI and deep learning is a method within machine learning.
- AI is the overarching field: any technique that lets computers perform tasks that need thinking
- Machine learning is a method within AI: systems that learn from data, without anyone programming every rule
- Deep learning is a method within machine learning: neural networks with many layers
Picture it as circles inside each other. AI is the outer circle, machine learning sits inside it and deep learning sits inside machine learning.
There are also AI techniques outside machine learning, such as expert systems that work with fixed rules. The breakthroughs of recent years have almost all come from deep learning.
What types of AI are there?
AI is usually divided into narrow AI and general AI. All the AI you use today is narrow AI.
Narrow AI (weak AI) is built for a defined kind of task. A spam filter recognises spam and a chess computer plays chess. Examples of narrow AI:
- Speech recognition on your phone
- Image recognition, as used with medical scans
- Recommendation systems in online shops and streaming services
- Language models, such as the models behind ChatGPT and Claude
General AI (strong AI) is AI that can think, reason and learn about any subject the way a human does. General AI does not exist (as of October 2026). Researchers disagree on whether and when it will arrive.
Generative AI is narrow AI that creates new content: text, images, sound or code. This is the form a wide audience has known since the launch of ChatGPT in November 2022.
AI agents are systems that combine a language model with tools and instructions and use them to carry out tasks by themselves. They are still narrow AI, with a wider scope than one question and one answer.
What are large language models?
A large language model (LLM) is a deep learning system trained on very large amounts of text, which lets it understand and write text itself. The technique behind it, the transformer, was published in 2017 by researchers at Google.
Well-known model families are:
- GPT by OpenAI, the models behind ChatGPT
- Claude by Anthropic
- Gemini by Google
- Llama by Meta, a family of open models you can run yourself
A language model keeps predicting which word is most likely to come next. It does this so well that the result reads like a considered answer. The downside: a language model can give a wrong answer that sounds convincing. So always check facts yourself.
Current models process images and code as well as text, and they can operate tools. Read more about the best-known application in what is ChatGPT.
Where do you encounter AI in daily life?
You encounter AI in software you use every day, often without it being called AI.
- Email: the spam filter and the suggested replies
- Navigation: the expected travel time and the fastest route
- Social media: the order of posts in your feed
- Banking: fraud detection that checks transactions
- Shopping: product recommendations in online shops
- Language: translation services and spell checking
These applications feel ordinary. AI mostly stands out as technology while it is new. After that it is a part of the product.
What can you do with AI in your business?
In your business you use AI mainly for work with language and data: writing, summarising, processing documents and answering customer questions.
- Text: having emails, quotes and reports drafted
- Documents: reading invoices, summarising contracts, writing minutes
- Data: analysing sales figures and spotting trends
- Customer contact: having frequently asked questions answered and complex questions handed to a member of staff
Examples per sector:
- Retail: demand forecasting and personalised recommendations
- Healthcare: support with image analysis and less administration
- Finance: risk assessment and fraud detection
- Logistics: route optimisation and inventory management
- Marketing: content creation and audience analysis
How to approach this as a business owner is covered on the page about AI for business.
What is the difference between AI and an AI agent?
AI is the technology, an AI agent is an application of it that carries out tasks by itself. An AI assistant such as ChatGPT answers the question you ask. An AI agent gets a goal and handles it.
An AI agent:
- Carries out tasks: it schedules appointments, sends reminders and processes requests
- Uses your systems: it works through integrations with your calendar, mailbox or CRM
- Knows your context: you write down instructions and business knowledge once
- Works through your own channels: for example WhatsApp, Slack or your website
The full explanation is in what is an AI agent.
Which risks and rules apply to AI?
AI makes mistakes, sometimes processes personal data and can pick up bias from its training data. As a user you remain responsible for what you do with the output.
In the EU the AI Act (Regulation (EU) 2024/1689) governs the use of AI. The law entered into force on 1 August 2024 and applies in stages:
- Since 2 February 2025 the bans on certain AI practices and the AI literacy obligation apply.
- Since 2 August 2025 the rules for providers of general-purpose AI models apply.
- The rules for high-risk systems follow later.
AI literacy means that organisations that use AI make sure their staff know enough about it. What that means for you is explained in the EU AI Act explained.
How do you get started with AI?
Start with one concrete problem. Which task takes too much of your time every week, which process is error-prone, where do customers get stuck?
Then look at which solution fits. For one person's one-off work an AI assistant such as ChatGPT or Claude is often enough. For recurring work with several steps an AI agent set up for your process is the better fit.
AI Agent B.V. helps in two ways: you learn it yourself in a training or in coaching, or you have an agent implemented on your own infrastructure.
Frequently asked questions
What is artificial intelligence in simple terms? Artificial intelligence is software that performs tasks that normally need human thinking, such as understanding language, recognising images and making decisions. The software learns this from large amounts of examples.
What is the difference between AI and machine learning? AI is the whole field. Machine learning is a method within AI in which a system learns from data, without anyone programming every rule. Almost all modern AI works with machine learning.
Is ChatGPT artificial intelligence? Yes. ChatGPT is generative AI: an AI assistant by OpenAI that runs on a large language model and produces text, code or images based on your question.
Is there AI that can do everything a human can? No (as of October 2026). All AI today is narrow AI, built for a defined kind of task. General AI, which can reason about any subject the way a human does, does not exist.
Does my business have to do anything about the EU AI Act? Yes, if you use AI. Since 2 February 2025 the AI literacy obligation applies: organisations that use AI systems make sure their staff know enough about them.
Taking AI further in your business
Ready to move from reading to doing? See how we approach AI implementation on your own infrastructure, discover what AI automation can take off your plate, read the AI agent pricing guide, or learn it yourself with our 1-on-1 AI training. Questions about your situation? Book a free intro call.
