Generative AI
Generative AI refers to AI systems that create new content – such as text, code, images, or structured data – based on patterns learned from training data and the input they receive.
AI
Explanation
Traditional AI and machine learning typically classify, predict, or detect patterns: for example, forecasting demand or flagging unusual transactions. Generative AI produces new output: a summary of a contract, a draft test case, a configuration description, or a piece of code.
Most text-based generative AI is built on large language models. When generative AI is combined with tools, data access, and the ability to plan and execute steps, it becomes the basis for agentic AI.
Why It Matters
Generative AI can reduce the effort for many knowledge-intensive tasks in finance and SAP projects, such as documentation, analysis, and test preparation. At the same time, generated content can be incomplete or wrong. For financial processes, generative AI should therefore be used with reliable data sources, clear review steps, and documented controls.
Related Terms
Large Language Model · Agentic AI · Hallucination · Prompt Engineering
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