What Do We Mean by “AI”? Clarifying the Basics

Artificial Intelligence is an umbrella term that describes a broad set of technologies designed to perform tasks that traditionally require human judgment, pattern recognition, or decision making. The challenge is that many very different technologies are all labeled “AI,” even though they behave very differently and deliver value in different ways.
Understanding these distinctions is critical to setting realistic expectations and making sound technology decisions.

Large Language Models (LLMs)

Large Language Models are currently the most visible and widely discussed form of AI. These models are trained on massive collections of text and code and are designed to understand, generate, summarize, and reason over language.


LLMs are particularly effective at:
• Drafting and summarizing documents
• Interpreting unstructured data such as emails, contracts, or reports
• Supporting research, analysis, and decision preparation
• Acting as conversational interfaces to data and systems


Most enterprise AI conversations today focus on LLMs because they are easy to demonstrate and deploy at an individual or team level. Tools such as ChatGPT, Microsoft Copilot, and Claude fall into this category. While powerful, LLMs are best understood as general-purpose reasoning and language engines, not systems of record or autonomous decision makers.

Beyond LLMs: Other Forms of AI in Active Use

LLMs are only one category within a much broader AI landscape. In many energy and industrial use cases, other forms of AI have been delivering value for years.

Machine Learning (ML)

Machine learning models learn patterns from historical data to make predictions or classifications. These models are commonly used for:
• Load, price, and demand forecasting
• Anomaly detection in trading, operations, or asset performance
• Risk scoring and scenario analysis

Unlike LLMs, ML models are typically narrow, highly specialized, and deeply embedded into operational systems.

Computer Vision

Computer vision applies AI models to images, video, and sensor data. In energy and utilities, this includes:
• Asset inspection using drones or cameras
• Leak detection and infrastructure monitoring
• Safety compliance and environmental monitoring

Optimization and Prescriptive AI

These models do not just predict outcomes but recommend actions. They are used in areas such as:
• Grid optimization
• Scheduling and dispatch
• Portfolio optimization and constraint-based planning

Agentic or Autonomous AI

This emerging category combines LLMs, ML models, and business rules to create systems that can plan tasks, take actions, monitor outcomes, and adjust behavior with limited human input. According to McKinsey & Company, agent-based AI represents a significant shift from tools that assist humans to systems that can execute end-to-end workflows.
This is widely viewed as the next major evolution of enterprise AI, but it also introduces new governance, risk, and control considerations.

Technologies Commonly Confused with AI

One of the biggest sources of frustration in AI adoption comes from labeling non-AI technologies as AI. These tools are valuable, but they behave very differently and should be evaluated accordingly.

Robotic Process Automation (RPA)

RPA tools automate repetitive, rules-based tasks such as data entry, reconciliations, or report generation. They do not learn, reason, or adapt without human reconfiguration. RPA excels at consistency and speed but lacks intelligence in the true AI sense.
Traditional Automation and Scripting

Many workflows described as “AI-driven” are actually deterministic scripts or scheduled jobs. These systems follow predefined logic and cannot generalize beyond their programming.

Advanced Analytics and Business Intelligence

Dashboards, reports, and statistical models are often branded as AI, but most are descriptive or diagnostic tools. They explain what happened, not why it happened or what should happen next.

As noted by Accelirate, AI is most effective when positioned as a complement to automation and analytics rather than a replacement. Mature enterprise architectures combine automation for execution, analytics for visibility, and AI for reasoning and decision support.

Common Enterprise AI Platforms in Use Today

Across industries, including energy, organizations are standardizing around a small number of AI platform categories:

• Foundation Model Providers such as OpenAI, Anthropic, and Google for LLM capabilities
• Cloud AI Platforms including Microsoft Azure AI, AWS AI services, and Google Vertex AI for model hosting, training, and integration
• Data and Analytics Platforms such as Snowflake, Databricks, and Palantir that increasingly embed AI directly into data workflows
• Industrial and Energy-Specific AI Solutions embedded within operational systems for forecasting, optimization, and asset management

The platform itself is rarely the differentiator. Value is created through use case selection, data readiness, system integration, and organizational adoption, not simply by selecting the latest AI tool.

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