AI FUNDAMENTALS

Hallucination

AI Fundamentals

Definition

An AI hallucination occurs when a language model generates false information, presenting it as true with confidence. LLMs don't 'know' what is true: they generate statistically probable text. For businesses, this means every AI output must be verified, and RAG systems are preferred because they anchor responses to real documents.

Related terms

AI Fundamentals

RAG (Retrieval-Augmented Generation)

RAG is a technique that combines information retrieval from a document base with AI text generation. Instead of relying solely on the model's knowledge, the system first searches for relevant documents (manuals, FAQs, contracts) and then generates responses based on those documents. It is the most effective approach for creating reliable business chatbots.

AI Fundamentals

Language Model

A language model is an AI system trained on enormous amounts of text to understand and generate natural language. Large language models (LLMs) such as GPT and Claude can write texts, answer questions, translate, and reason about complex problems. For businesses, they represent versatile assistants for any text-based task.

AI Fundamentals

Temperature

Temperature is a parameter that controls the randomness of responses generated by an AI model. Low values (0-0.3) produce predictable and conservative responses, ideal for structured tasks like document classification. High values (0.7-1.0) generate more creative and varied responses, useful for brainstorming and content generation.

EXPLORE

More terms in AI Fundamentals

Artificial Intelligence

Artificial intelligence is the computer science discipline that develops systems capable of performing tasks that normally require human intelligence: understanding language, recognizing images, making decisions. For Italian SMEs, AI represents a concrete opportunity to automate repetitive processes and achieve measurable competitive advantages.

Machine Learning

Machine learning is a subfield of AI in which systems automatically learn from data without being explicitly programmed for every scenario. ML algorithms analyze patterns in historical data to make predictions on new data. In business practice, it is used to forecast demand, classify documents, and optimize production processes.

Deep Learning

Deep learning is an advanced machine learning technique that uses neural networks with many layers (hence 'deep') to learn complex data representations. It underpins modern speech recognition, machine translation, and text generation systems. It requires large amounts of data but produces extraordinarily accurate results.

Neural Network

An artificial neural network is a computational model inspired by the workings of the human brain, composed of nodes (neurons) organized in interconnected layers. Each connection has a weight that is adjusted during training. Neural networks underpin nearly all modern AI systems, from image recognition to text generation.

Language Model

GPT

GPT (Generative Pre-trained Transformer) is the architecture behind ChatGPT, developed by OpenAI. It is a language model pre-trained on vast text corpora that can be used to generate content, answer questions, and perform complex text tasks. GPT-4 and subsequent versions have demonstrated increasingly advanced reasoning capabilities.

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