Since the rise of generative AI in late 2022, the technology’s evolving vocabulary has become essential knowledge for anyone interested in artificial intelligence. This article aims to demystify some of the latest AI terminology. It starts by explaining how AI uses reasoning and planning to solve problems and accomplish tasks. It then differentiates between training and inference, the two key steps in creating and using AI systems. Small language models (SLMs) are introduced as compact versions of large language models (LLMs), suitable for devices with fewer computational resources. Grounding is discussed as a method to improve AI accuracy by connecting models with real-world data. Retrieval Augmented Generation (RAG) further enhances AI’s accuracy without extensive retraining. The orchestration layer is responsible for managing tasks in the right order to generate the best responses. While current AI models lack true memory, they use orchestrated instructions to remember context temporarily. The article also highlights transformer models, which excel in understanding context and generating text, and diffusion models, which are used for image creation. Frontier models, which push AI boundaries, and GPUs, the computational powerhouses behind AI, are also explained. This comprehensive guide aims to equip readers with a deeper understanding of the latest advancements in AI technology.

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