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What Is Generative AI?

September 2025

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Outlook Money

Generative AI is a subset of AI that creates new content, such as text, images, audio, or videos. Unlike traditional AI, Gen AI mimics human intelligence to analyse data, identify patterns, and create new content. It is called generative because of its ability to “generate” human-like responses to prompts. On the other hand, traditional AI, focuses on automation.

- By Versha Jain

What Is Generative AI?

GenAI took the world by storm when OpenAI, an AI research and deployment company, released its GPT-3.5 chatbot on November 30, 2022. Since then, many other companies have launched their GenAI chatbots.

With each day, AI is becoming an increasingly integral part of various aspects of daily life. As its influence continues to grow, let us understand more about it.

JOURNEY OF GENERATIVE AI

According to Gartner, a research and advisory firm, in 2010, researchers found that natural language translation AI models exposed to a vast amount of text perform better than other models. They use Natural Language Processing (NLP), a branch of AI, to understand human language and translate it into a target language.

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