# What is Generative AI, the technology behind OpenAI’s ChatGPT? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Generative AI: Everything You Need to Know Meta Description: Learn about the buzz surrounding generative AI, from creating content to its potential uses and concerns, with major players like Microsoft and Google leading URL: https://financedigest.com/what-is-generative-ai-the-technology-behind-openais-chatgpthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-17t114832z2lynxmpej2g0etrtroptp4openai-microsoft-1736814300086-compressed.jpg) (Reuters) – Generative artificial intelligence has become a buzzword this year, capturing the public’s fancy and sparking a rush among Microsoft and Alphabet to launch products with technology they believe will change the nature of work. Here is everything you need to know about this technology. WHAT IS GENERATIVE AI? Like other forms of [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Types of artificial intelligence"), generative AI learns how to take actions from past data. It creates brand new content – a text, an image, even [computer code – based on that training](https://www.financedigest.com/enterprise-training-and-the-future-of-cloud-computing.html "Enterprise Training and the Future of Cloud Computing"), instead of simply categorizing or identifying data like other AI. The most famous [generative AI application](https://www.financedigest.com/cardstack-launches-application-to-simplify-access-to-token-generation-events.html "Cardstack Launches Application to Simplify Access to Token Generation Events") is ChatGPT, a chatbot that Microsoft-backed OpenAI released late last year. The AI [powering it is known as a large language model because it takes in a text prompt and from that writes](https://www.financedigest.com/more-you-less-we-the-power-of-empathetic-writing.html "More you, less we: the power of empathetic writing.") a human-like response. GPT-4, a newer [model that OpenAI announced this week](https://www.financedigest.com/this-is-the-best-week-for-cash-savvy-iphone-fans-to-sell-their-6s-models.html "This is the best week for cash-savvy iPhone fans to sell their 6s models"), is “multimodal” because it can perceive not only text but images as well. OpenAI’s president demonstrated on Tuesday how it could take a photo of a hand-drawn mock-up for a website he wanted to build, and from that [generate a real](https://www.financedigest.com/investing-in-real-estate-how-to-generate-passive-income.html "Investing in Real Estate: How to generate passive income") one. WHAT IS IT GOOD FOR? Demonstrations aside, [businesses are already putting generative AI to work](https://www.financedigest.com/how-to-make-social-media-marketing-work-for-your-small-business.html "How to make social media marketing work for your small business"). The [technology is helpful for creating a first-draft of marketing](https://www.financedigest.com/technology-will-kick-start-the-uk-housing-market.html "Technology will kick-start the UK housing market") copy, for instance, though it may require cleanup because it isn’t perfect. One example is from CarMax Inc, which has used a version of OpenAI’s [technology to summarize thousands of customer reviews and help shoppers decide what used car](https://www.financedigest.com/how-technology-is-improving-car-safety.html "How technology is improving car safety") to buy. Generative AI likewise can take notes during a [virtual meeting](https://www.financedigest.com/virtual-meetings-the-big-mistakes-that-can-make-online-communications-fail.html "Virtual Meetings – The big mistakes that can make online communications fail"). It can draft and personalize emails, and it can create slide presentations. [Microsoft Corp and Alphabet Inc’s Google](https://www.financedigest.com/microsoft-unveils-ai-office-copilot-in-fast-moving-race-with-google.html "Microsoft unveils AI office copilot in fast-moving race with Google") each demonstrated these features in product announcements this week. WHAT’S WRONG WITH THAT? Nothing, although there is [concern about the technology’s potential](https://www.financedigest.com/connectivity-concerns-must-be-addressed-to-unlock-iots-potential-for-energy-sector.html "Connectivity concerns must be addressed to unlock IoT’s potential for energy sector") abuse. [School systems have fretted about students](https://www.financedigest.com/its-back-to-school-for-investors-as-uk-student-accommodation-less-vulnerable-to-brexit-shock-reports-jll.html "It’s back to school for investors as UK student accommodation “less vulnerable to Brexit shock” reports JLL") turning in AI-drafted essays, undermining the hard work required for them to learn. Cybersecurity researchers have also expressed concern that generative AI could allow bad actors, even governments, to produce far more disinformation than before. At the same time, the technology itself is prone to making mistakes. Factual inaccuracies touted confidently by AI, called “hallucinations,” and responses that seem erratic like professing love to a user are all reasons why [companies have aimed to test the technology](https://www.financedigest.com/5-top-tips-on-how-to-grow-a-technology-company.html "5 Top Tips on how to grow a technology company") before making it widely available. IS THIS JUST ABOUT GOOGLE AND MICROSOFT? Those two companies are at the forefront of research and [investment in large](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") language models, as well as the biggest to put generative AI into widely used software such as Gmail and Microsoft Word. But they are not alone. Large companies like Salesforce Inc as well as smaller ones like Adept AI Labs are either creating their own competing AI or packaging [technology from others to give](https://www.financedigest.com/legislate-raises-3-6m-to-give-startups-smes-the-technology-to-query-and-compare-every-contract.html "Legislate raises .6M to give startups & SMEs the technology to query and compare every contract") users new powers through software. HOW IS [ELON MUSK](https://www.financedigest.com/elon-musk-and-others-urge-ai-pause-citing-risks-to-society.html "Elon Musk and others urge AI pause, citing ‘risks to society’") INVOLVED? He was one of the co-founders of OpenAI along with Sam Altman. But the [billionaire left the startup’s board](https://www.financedigest.com/billionaire-cohen-builds-stake-in-nordstrom-urges-board-shakeup.html "Billionaire Cohen builds stake in Nordstrom, urges board shakeup") in 2018 to avoid a conflict of interest between OpenAI’s work and the AI research being done by Telsa Inc – the electric-vehicle maker he leads. Musk has expressed concerns about the future of AI and batted for a regulatory authority to ensure development of the [technology serves public](https://www.financedigest.com/why-its-time-to-centralise-public-sector-technology.html "Why it’s time to centralise public sector technology") interest. “It’s quite a dangerous technology. I fear I may have done some things to accelerate it,” he said towards the end of Tesla Inc’s [Investor Day event earlier this month](https://www.financedigest.com/6-months-to-go-until-brexit-and-investor-sentiment-remains-bold.html "6 months to go until Brexit and investor sentiment remains bold"). “Tesla’s doing good things in AI, I don’t know, this one stresses me out, not sure what more to say about it.” (This story has been refiled to correct dateline to March 17) (Reporting By Jeffrey Dastin in Palo Alto, Calif. and Akash Sriram in Bengaluru; Editing by Saumyadeb Chakrabarty) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---