Generative AI is a type of unsupervised machine learning that enables computers to generate new text, images, audio, and code. It works by training models like variational autoencoders to encode data into low-dimensional representations, learn the structure and relationships, then generate new outputs. Other models include generative adversarial networks. Generative modeling tries to understand data structures to generate matching features, unlike discriminative modeling which classifies data. The Turing test determines if a machine can converse without detection, demonstrating human-level intelligence. Generative AI has applications in finance like conversational banking, personalized advice, and compliance systems, as well as voice, music, and image generation.

1. GENERATIVE AI
Term of the day

2. What is generative AI
Generative AI is a type of artificial intelligence
where machine learning models are developed and
trained using unsupervised learning that enables
computer systems create new text, images, audio,
source codes etc.

3. How Does GenerativeAIWork?
Variation Auto Encoder (VAE)
One machine learning model is trained to encode data into low-dimensional
representation with the aim of capturing the data’s important features, structure
and relationships.
The data is decoded into its original state and by the time the process is done, the
model would have learnt a compact representation of the data which it can then use
to generate new outputs.
Other generative AI models include Generative Adversarial Networks (GANs).

4. Discriminative vs generative modeling
 Discriminative Modeling:This is mainly used to classify data
into the categories they belong to based on some given set of
features. this mostly belongs to the supervised machine learning
tasks.
Examples include Logistic regression, DecisionTree and Random
Forest
 Generative Modeling: Generative modeling tries to understand
the dataset structure and generate features that match the data
set fed into them.

6. TuringTest
 TheTuring test is a simple method used to determine if a
machine can demonstrate human intelligence.
 If a machine can engage in a conversation with a human without
being detected as a machine, then it is said to have passed the
Turning test.
 TheTurning test was developed in 1950 by AlanTuring.

7. Generative AI powered solutions in finance
Conversational Banking
Personalized Financial Advice
Compliance Systems

8. Other uses of generative AI
Voice generation
Music generation
Image generation