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Understanding AI Models: A Practical Guide

August 21, 2025
6 min read
Illustration of a person using AI-powered technology.
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2am.
The phrase AI model is mentioned a lot lately, but have you ever wondered what it actually means?

In simplest terms, it’s just a system trained to do something with data. Feed it enough examples, and it learns to spot patterns or make guesses about what comes next.

Think about everyday things: Spotify suggesting a song you might like, your phone unlocking when it sees your face, or Gmail quietly pushing junk mail out of your inbox. None of that happens by accident. Behind them sits an AI model that’s been tuned on piles of information to get good at one very specific job.

And here’s the key: these models don’t “understand” in the way people do. They’re more like extremely good imitators. A facial recognition system doesn’t know who you are. It just knows how to compare what it sees to millions of stored patterns and spit out a likely match.

Some people describe AI models as algorithms. Others call them programs. And both are fair, depending on how technical you want to get. What matters is that a model is the thing that connects raw data with actual output: predictions, recommendations, answers, text, images - you name it.

AI vs. Machine Learning vs. Deep Learning

Now, here’s where it gets complicated. People use “AI”, “machine learning” and “deep learning” interchangeably. In reality, they overlap, but they are certainly not identical.

AI is the broadest, umbrella term: and anytime a machine acts in a way that seems “intelligent:, it fits here. Some of the most widely used ones are machine learning models and deep learning models.

Let’s dive in deeper and see how they power the tools that all these businesses and individuals rely on daily.

Machine learning Models

Machine learning models don’t rely on hard-coded rules. Instead, they improve by finding patterns in data: and the more data they see, the better their classifications or predictions are. Machine learning is behind many tools, from those that we use every day (such as email spam filters) to customer churn predictions that businesses rely on.

In machine learning there are three approaches:

  • Supervised learning – This means that the model is trained on labeled examples, like past sales records, to predict future trends.
  • Unsupervised learning – In this case, there are no labels, and the model looks for hidden patterns in raw data on its own instead. An example of this task would be grouping customers with similar behavior.
  • Reinforcement learning – Here, the model learns by trial and error, adjusting itself based on feedback. Used heavily in robotics and game simulations.

Due to their flexibility, machine learning models are used across different industries like finance, healthcare, logistics, and marketing.

Deep Learning Models

Deep learning models are still machine learning, but you can think of them as a more advanced branch. They use artificial neural networks with many layers - that’s why they’re called “deep”. Each layer transforms the data a little bit, so by the time information has passed through, the network has picked up on incredibly subtle patterns that simpler models would miss.

This is the technology used for facial recognition, voice assistants, fraud detection, and medical image analysis. Unlike regular ML, deep learning models handle unstructured data: photos, videos, audio and images. These advanced models can recognize objects, understand language and even generate new, realistic-looking content.

Because of their ability to process enormous amounts of information, deep learning continues to drive some of the most advanced breakthroughs in AI research and real-world applications.

Common Algorithms and Examples of AI Models

“What are the different types of AI models and how do they differ?” is a question best answered with some common examples. AI models are very different: some are simple and interpretable, while others are complex models that handle huge messy datasets. Here’s a quick overview:

Machine Learning Algorithms

Algorithm

What it does

Example use case

Linear Regression

Predicts continuous values

House prices based on size/location

Logistic Regression

Classifies yes/no outcomes

Detecting whether an email is spam

Decision Trees

Splits decisions into branches

Fraud detection, sales forecasting

Random Forests & Ensembles

Combines many trees for stronger predictions

Combines many trees for stronger predictions

Support Vector Machines (SVMs)

Handles high-dimensional classification

Text categorization

Deep Learning Architectures

Architecture

What it does

Example use case

Convolutional Neural Networks (CNNs)

Specialized for image/video processing

Medical scans, self-driving car vision, social media face filters

Recurrent Neural Networks (RNNs)

Handles sequences of data

Financial time series, natural language tasks

Long Short-Term Memory Networks (LSTMs)

A type of RNN that remembers context over longer periods

Machine translation, speech recognition

Transformers

Understands and generates text at scale

Large language models like GPT-4, chatbots, generative AI

Reinforcement Learning Models

Model

What it does

Example use case

Q-Learning

Learns strategies by maximizing long-term rewards

Game AI, simple decision-making tasks

Deep Q-Networks (DQNs)

Combines Q-learning with deep neural networks

Training agents to play Atari games at superhuman level

Policy Gradient Methods

Directly optimizes decision-making strategies

Robotics, simulations, advanced AI training

Generative AI Models

Model

What it does

Example use case

GANs (Generative Adversarial Networks)

One network generates content, another critiques it until it looks real

Photorealistic images of faces that don’t exist, synthetic data

VAEs (Variational Autoencoders)

Compresses and recreates data

Generating new examples similar to original data, image or audio synthesis

Diffusion Models

Generates images by gradually removing noise

Tools like DALL·E 3, Stable Diffusion, AI image generation

Types of AI Models: By Technology, Capability, and Functionality

So far we’ve looked at models through the lens of their algorithms. Another way to answer “How many AI models are there?” is to categorize them by technology, purpose, and capability.

By Technology

  • Machine Learning (ML): Supervised, unsupervised, and reinforcement learning models. Think credit scoring, spam filters and risk assessments.
  • Deep Learning (DL): Multi-layered neural networks for unstructured data like speech, video, and images.
  • Natural Language Processing (NLP): Specialized AI models such as BERT and GPT, built to understand and generate human language.
  • Generative AI: Models designed to create new content (text, images, music, video). Transformers and diffusion models dominate here.
  • Robotics & Expert Systems: AI embedded in physical or rule-based systems for factories or medical diagnosis.

By Capability

  • Narrow AI (Weak AI) – Trained for a single domain. Examples: Netflix recommendations, fraud detection.
  • General AI (Strong AI) – A still-hypothetical form of AI that can learn and reason like a human across any task.
  • Superintelligent AI – Theoretical AI that surpasses human intelligence in every way. A hot topic in philosophy and ethics, but not a reality (yet).

By Functionality

  • Reactive AI: Responds to inputs without memory. Example: IBM’s Deep Blue chess computer.
  • Limited Memory: Uses past data to make better future decisions. Example: self-driving cars.
  • Theory of Mind: A work-in-progress: AI that could understand emotions and intentions.
  • Self-Aware AI: Entirely speculative at this point.

Training an AI Model

At this point, a fair question is: “How are AI models created?” or even more proactively, “How to train an AI model?”

Training is how algorithms become actual trained AI models, and the general process looks like this:

Step 1 - Gather Data

The bread and butter of any AI learning model. For LLMs like ChatGPT, this means billions of words scraped from books, websites, and curated datasets. For a hospital’s AI, it could mean years of patient scans and records.

Step 2 - Clean and Label Data

Garbage in, garbage out. Cleaning removes errors, inconsistencies, and general “noise.” For supervised learning, labeling is key (spam vs. not spam, cat vs. dog).

Step 3 - Choose a Model

The kind of AI depends on the task. Linear regression might be enough for predicting sales, but an LLM is needed for knowledge management or customer chatbots.

Step 4 - Train the Model

Feed the model data and allow it to adjust parameters (weights, biases, probabilities). With deep learning, this means running backpropagation across many layers of a neural network.

Step 5 - Validate and Test

Use separate datasets to check accuracy and precision. A model that performs well in training won’t necessarily do so in the real world. This is a major concern in AI model development.

Step 6 - Deploy and Monitor

Once trained, models can be integrated into systems. But keep in mind that training never truly ends: models need fine-tuning and retraining as conditions and data evolve (endlessly).

This general workflow applies whether you’re building a logistic regression spam filter or a generative AI model like GPT-4. Scale makes the main difference: smaller models can train on a laptop, while LLMs require clusters of GPUs running for weeks.

Real-Life Applications of AI Models

AI models are already in our everyday lives, and sometimes we’re not even aware of it. In real estate, machine learning models like linear regression help predict property prices based on factors like size, location, and amenities, enabling buyers and sellers to make informed decisions. In healthcare, deep learning models - especially CNNs - scan medical images and flag issues faster than doctors could alone, which helps speed up diagnosis. Needless to say this is one of the most impactful and tangible changes that AI brings.

Shops and retailers lean on AI too. By combining data from websites and physical stores, hybrid AI ML models can suggest products, rearrange store layouts, or even run automated checkouts. In movies, generative AI models such as GANs have been used to restore old footage, build visual effects, or generate scenes that would normally cost millions to film. On the home front, smart systems blend IoT signals with trained AI models to dim the lights, lock doors, or tweak the thermostat.

What ties these examples together is that different types of AI models are being used to handle practical work, remove repetitive tasks, and uncover insights that people would struggle to find on their own.

Generative AI and NLP Models

Two fast-growing areas of artificial intelligence are generative AI and NLP AI. Generative AI models - like GANs, VAEs, or diffusion models - can spin new content from existing data. Today you’ll see them used in fashion (prototype designs), in gaming (synthetic worlds), or in marketing (photo-realistic images).

NLP AI, on the other hand, is about language. Tools like BERT and GPT can read, write, or summarize text. They drive chatbots, sentiment analysis, document summarization, translation, and more. With the help of trained AI models, businesses can quickly analyze customer feedback, summarize documents, translate, or interact with users in real time.

In reality, many tasks combine generative AI and NLP models. For example, a generative model can create realistic customer dialogue, and then a discriminative NLP model ensures the content aligns with desired tone and accuracy.

Examples of Popular AI Models

Here are some of the most well-known examples of AI models today, that might be familiar:

  • ChatGPT: A large language model (LLM) that generates text, answers questions, summarizes information, and helps with creative tasks like coding or creating content.
  • MidJourney: A generative AI model for creating images prompted by natural language, already widely used in marketing, design, and social media content creation.
  • Hugging Face: An actual platform that offers access to various AI models for NLP, with tools to train, test, and deploy different AI models.
  • MuseNet: A music-generating AI capable of composing multi-instrument tracks: ideal for video soundtracks, ads, or creative projects.
  • YOLO-v8: A computer vision model that detects and labels objects in images or videos.
  • Mistral 7B: A smaller, but highly capable LLM designed for chat, coding, and reasoning tasks.
  • Segment Anything (SAM): A segmentation model that detects and isolates any object in an image.

These model examples demonstrate the range of different types of AI models available, from ML models and DL models to NLP and generative AI systems.

Conclusion

AI is moving fast, but the playbook is open. Learn how AI models are created, how AI models work, and which types of AI models match your problem, and you’ll make better calls than any hype cycle. Treat AI algorithms as tools: set a clear goal, pair them with clean data, test for failure modes, and keep monitoring in the wild. As adoption spreads, the teams that can choose the right AI model, explain its behavior, and iterate responsibly will set the pace in a data-driven market.

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How to train an AI model?

Training an AI model involves feeding it large amounts of labeled or unlabeled data, adjusting model parameters through optimization algorithms, and iteratively validating performance until it can accurately make predictions or classifications.

How to test an AI model?

Testing an AI model requires evaluating its performance on a separate dataset not used in training, measuring metrics like accuracy, precision, recall, or F1 score to ensure it generalizes well to new, unseen data.

What is a major concern when training artificial intelligence (AI) models?

A major concern is overfitting, where a model learns the training data too closely, reducing its ability to generalize to new data, along with biases in data that can produce unfair or inaccurate predictions.

What type of AI model does ChatGPT use?

ChatGPT uses a transformer-based large language model (LLM) designed to generate and understand natural language text through self-supervised learning on massive datasets.

How much data do I need before implementing AI models?

The required data depends on model complexity: simple models may need thousands of examples, while large AI models, such as deep learning or LLMs, often require millions to billions of data points to achieve reliable performance.

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