Generative AI is artificial intelligence that creates new content — text, images, code, audio, or video — in response to a prompt, rather than only classifying or analyzing existing data. It is most commonly powered by large language models and other foundation models.
How it works
Generative models learn the statistical patterns of their training data and then sample from that learned distribution to produce novel outputs. Text generators use language models; image generators typically use diffusion models. User-facing examples include ChatGPT, Claude, Gemini, Midjourney, and GitHub Copilot.
Why it matters
Generative AI has been adopted faster than the personal computer or the internet, reaching roughly 55% of U.S. adults within a few years of ChatGPT’s launch. Enterprises spent about $37 billion on it in 2025. See Generative AI Statistics 2026 and AI Adoption Statistics 2026.
Related terms: Large Language Model · Agentic AI · Foundation Model · All glossary entries