(Read time: 7 minutes)

Let’s start with a quick question.

What is the missing figure here?

Was it easy? How did you find that the answer was the 4th option?

You saw the first three boxes. And then identified a certain pattern. And then predicted the fourth.

That’s EXACTLY what AI does.  

It observes and LEARNS the searches you perform, the kinds of videos you watch, and the words you type. It identifies patterns in your data and uses those patterns to predict its next move.

In simple terms, AI is a computer system that is so good at recognising patterns and figuring out the right response, whether detecting spam emails or making self-driving cars stay in their lane.

It learns from data and makes decisions like a human—only faster (and without needing coffee breaks).

AI vs. Machine Learning—What’s the Difference?

You’ve probably heard of the term machine learning. People often use the words together. Is it the same as AI? Well, there are some differences.

Machine Learning (ML) is like teaching a dog new tricks. You give it a treat each time it gets something right until it learns the pattern—sit, fetch, roll over.

AI is like a dog getting smarter over time. Not only does it remember its tricks, but it also starts figuring out new things on its own—like sneaking into the fridge for a snack, even if you never taught it how!

AI uses more powerful models and larger datasets to understand complex patterns and even learn autonomously.

The chatGPT moment

AI isn’t new—humanity has been working on it since the 1980s.

But everything changed with ChatGPT, powered by GPT-3.5. Suddenly, we had an AI that could hold natural, flowing conversations, drawing from a vast pool of knowledge on the internet.

This breakthrough came from “scaling laws.”

Simply put, the bigger the AI model (with more data and computing power), the better it performs. As we fed these models more information and used more powerful computers, they started getting smarter, even developing unexpected abilities.

It’s like teaching a child to read, only to find out they can write their own stories! These “emergent capabilities”—skills the AI wasn’t directly programmed to have—surprised even its creators.

What made ChatGPT revolutionary was its ability to hold real conversations, understand context, crack jokes, and offer thoughtful answers. For the first time, it felt like talking to something that could truly “think.”

This breakthrough took the world by storm. ChatGPT became the fastest-growing app in history, reaching 100 million users in record time.

YouTube was filled with videos of:

“How to Make $10K with ChatGPT”,

“Started a Business in 48 Hours Using Only AI!”

and a kid who made $1M with ChatGPT by selling e-books written by chatGPT (this was real !!). 

Suddenly, we've gone from computers that needed step-by-step instructions (like my dad following a recipe) to AI that can help doctors diagnose diseases, support teachers in classrooms, compose music, and so much more. 

The ChatGPT moment showed what’s possible when we “scale” AI—feeding it more data and compute power to unlock brand-new capabilities.

We’ve moved beyond an era where computers could only follow strict instructions (“If A happens, do B”). AI brings flexibility, allowing machines to adapt to new situations in real-time.

Further Learning

If you have dedicated time, this course has six hours of beginner-friendly content. No technical background is needed.

What’s Next?

P.S. Still reading? Congratulations! You now know more about AI than most people who claim to be "AI experts" on LinkedIn! 😉

In the next lesson, we’ll dive into why AI and Crypto are two of the most powerful technology trends today and how they fit together beautifully.

Until next time,

Teng Yan