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What is generative AI?

McKinsey & Company

Jan 19, 2023

AI generate Digital Venus Botticelli. Virtual renaissance statue in hand. #1453981082

Generative artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. Recent new breakthroughs in the field have the potential to drastically change the way we approach content creation.

Generative AI systems fall under the broad category of machine learning, and here’s how one such system—ChatGPT—describes what it can do:

Ready to take your creativity to the next level? Look no further than generative AI! This nifty form of machine learning allows computers to generate all sorts of new and exciting content, from music and art to entire virtual worlds. And it’s not just for fun—generative AI has plenty of practical uses too, like creating new product designs and optimizing business processes. So why wait? Unleash the power of generative AI and see what amazing creations you can come up with!

Did anything in that paragraph seem off to you? Maybe not. The grammar is perfect, the tone works, and the narrative flows.

What are ChatGPT and DALL-E?

That’s why ChatGPT—the GPT stands for generative pretrained transformer—is receiving so much attention right now. It’s a free chatbot that can generate an answer to almost any question it’s asked. Developed by OpenAI, and released for testing to the general public in November 2022, it’s already considered the best AI chatbot ever. And it’s popular too: over a million people signed up to use it in just five days. Starry-eyed fans posted examples of the chatbot producing computer code, college-level essays, poems, and even halfway-decent jokes. Others, among the wide range of people who earn their living by creating content, from advertising copywriters to tenured professors, are quaking in their boots.