Generative AI is a category of artificial intelligence that creates new content, including text, images, code and other media, rather than simply analysing or classifying existing information. It works by learning patterns from large amounts of training data, then generating new output that follows those same patterns. Tools such as Microsoft Copilot and ChatGPT are built on generative AI, specifically large language models for text generation.
How generative AI works
Generative AI models are trained on vast datasets, learning statistical relationships between words, pixels or other data points. When given a prompt, the model generates new content by predicting the most plausible continuation based on what it learned during training. This differs from earlier AI approaches that mainly classified or scored existing input, since generative AI produces genuinely new output each time, which is why two similar prompts can produce noticeably different results.
How UK businesses use generative AI
- A marketing team uses Microsoft Copilot to draft first versions of blog posts and social media content, then edits and refines the output rather than starting from a blank page.
- A finance team uses generative AI to draft narrative commentary for management reports based on the underlying figures, saving time on routine reporting tasks.
- A software development team uses generative AI to draft boilerplate code and documentation, speeding up routine development work.
- A customer service team uses generative AI to draft response templates for common enquiry types, which agents then personalise before sending.
How Advantage helps businesses adopt generative AI
Advantage helps UK SMEs identify practical, well-scoped use cases for generative AI, primarily through Microsoft Copilot across Microsoft 365, Dynamics 365 and Business Central, with appropriate guidance on where human review remains essential.
Frequently Asked Questions
What is the difference between generative AI and traditional AI?
Traditional AI typically performs a specific task, such as classifying an email as spam or predicting a sales figure, based on patterns it has learned. Generative AI creates new content, including text, images and code, by predicting what should plausibly come next based on its training, rather than simply classifying or scoring existing input.
Is Microsoft Copilot an example of generative AI?
Yes. Microsoft Copilot is built on generative AI models, which is why it can draft original emails, summarise documents in new wording, and write code rather than simply retrieving pre-written answers.
Can generative AI be wrong or make things up?
Yes. Because generative AI produces plausible-sounding output based on patterns rather than verified facts, it can sometimes generate confident but incorrect information, a behaviour known as AI hallucination. This is an important consideration when using generative AI output for business decisions.
