7. Artificial Intelligence#
Artificial intelligence is becoming a practical layer in information systems. This chapter introduces AI concepts, generative AI, and governance issues such as bias, privacy, accountability, and organizational risk.
Video
What Are AI, ML, DL, and Generative AI? (about 10 minutes) by IBM Technology
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Learning Objectives
By the end of this chapter, you will be able to:
Distinguish models, training, inference, prediction, and classification in a business workflow.
Evaluate a model using appropriate data and the consequences of different errors.
Explain prompts, context, retrieval, generation, and tool-using agents.
Design a governance rationale covering bias, privacy, security, oversight, and accountability.
Concept Map
- Learning
- Prediction
- Automation
- Prompts
- Outputs
- Limits
- Bias
- Privacy
- Accountability
Glossary
# |
Term |
Explanation |
|---|---|---|
1 |
Artificial intelligence |
Computer systems that perform tasks associated with perception, language, prediction, reasoning, or action. |
2 |
Machine learning |
An AI approach in which models improve performance by learning patterns from data. |
3 |
Training data |
Examples used to fit or adjust a model. |
4 |
Model |
A learned or designed representation that maps inputs to outputs. |
5 |
Prediction |
A model output estimating a likely value, class, event, or next action. |
6 |
Classification |
Assigning an input to one of several categories. |
7 |
Generative AI |
AI that creates text, images, code, audio, or other content from learned patterns. |
8 |
Large language model |
A model trained on large amounts of text to generate and analyze language. |
9 |
Prompt |
The instruction, question, or context given to an AI system. |
10 |
Token |
A small text unit processed by a language model. |
11 |
Embedding |
A numeric representation of meaning used for search, comparison, or model input. |
12 |
Agent |
An AI system that can pursue a goal by using tools, memory, or multi-step workflows. |
13 |
Automation |
Using technology to perform tasks with limited human intervention. |
14 |
Human oversight |
Review and control by people over AI outputs, decisions, and consequences. |
15 |
Bias |
Systematic distortion or unfairness in data, model behavior, or system outcomes. |
16 |
Hallucination |
An AI output that appears plausible but is unsupported, false, or fabricated. |
17 |
Explainability |
The ability to give useful reasons for how a model produced an output. |
18 |
AI governance |
Policies, roles, controls, and monitoring used to manage AI value and risk. |
19 |
Responsible AI |
The design and use of AI with attention to fairness, safety, transparency, accountability, and human impact. |
20 |
Model risk |
The possibility that a model produces harmful, unreliable, biased, or misused results. |
Lecture Slides
These lecture drafts follow the authored sections and aligned assignments.