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Draft from 5 July 2025.

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Introduction

Much of the discussion of AI and AI literacy remains at the ChatGPT launch level. The frontier has advanced dramatically since then. These are my current talking points about what the models can actually do today and how to explore the real capabilities.

Part 1: Understanding AI Capabilities

1. How AI Works - Language Models

Developing some basic intuitions about what's happening when you're using ChatGPT or other tools.

Note: language model based AI is not the same as data science AI

1.1 AI Capabilities = Inference + Orchestration

The capabilities of any AI system are a combination of:

Example: one important model capability is to realise that it needs a tool and output a few tokens that say in effect 'please take the following code and run it'. The orchestration is then watching for those tokens and triggers a virtual machine that runs the code (for instance a calculation) - this is how Advanced Data Analysis works

1.2 Context Completion = How Models (raw intelligence) work

2. Frontier of Language Model Capabilities

What the models can do today: