What is AI, in plain English?
Short answer: Artificial intelligence is software that learns patterns from data so it can solve problems or do tasks that usually need human judgment. Chatbots like ChatGPT are a kind called large language models, which work by predicting the next word.
The key terms
The SBA describes machine learning as using data to build models that can do complex tasks without being explicitly programmed for each one. A large language model learns language patterns from massive amounts of text. Generative AI uses those patterns to create new text, images, video or music.
Why it matters for you
Because chatbots predict likely words rather than look up facts, they're great at drafting, summarizing and brainstorming, and weaker on precise facts. OpenAI's own research explains that this is why they sometimes confidently make things up.
How to start
Give it a real task you'd otherwise do yourself, like rewriting an email, and say who it's for and what tone you want. The instruction you type is called a prompt.
Sources
- U.S. Small Business Administration, AI for small businesses
- OpenAI, Why language models hallucinate (Sep 2025)
Sponsored byThis spot is available. Sponsor Basics