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AI fundamentals: Demystifying technology that's reshaping our world
Daily FT
|September 16, 2025
FOLLOWING my previous articles, many readers reached out with a specific request: explain AI and its impact in language everyone can understand.

While AI has sparked widespread interest, the lack of accessible explanations has kept it in the 'too complex to approach' category for many, even among executives at major corporations. There's no shame in acknowledging knowledge gaps; we're not expected to master every emerging technology overnight. However, staying current with transformational forces isn't optional in today's business environment. This article addresses those requests by covering the fundamentals of AI, providing clarity on what it is, how it's already reshaping our lives, and the vast opportunities it creates for those willing to engage with it.
You interacted with AI over 5,000 times today, yet most people still can't explain what it actually is. That's not an indictment of your intelligence-it's a testament to how seamlessly AI has woven itself into the fabric of modern life. While we debate whether AI is friend or foe, it's already become our invisible copilot, quietly transforming everything from how we shop to how we sleep.
This isn't another article about robots taking over. It's about understanding the technology that's already taken over-and why that's actually good news for those willing to embrace it.
What AI actually is (in terms your grandmother would understand)
Strip away the jargon, and AI is surprisingly simple: it's pattern recognition at a massive scale. Imagine having a friend with perfect memory who can instantly spot trends across millions of data points and predict what you'll want before you know it yourself. That's AI.
But here's where most explanations go wrong-they get lost in technical complexity. So let me put it this way: AI is like having a conversation with someone who has read every book, watched every video, and studied every pattern in human behaviour, then uses that knowledge to help you make better decisions.
There are essentially two flavours you need to know about:
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