AI has quietly transformed your car, workplace and favourite shopping apps. Here’s a straightforward guide to the trending AI terms you need to know
In this series, we asked an AI to explain AI, then had a human make sense of it for you. This article is part two of this content series.
Artificial intelligence has burst into the spotlight of daily life from behind the scenes. It is now designing your dream home, suggesting the perfect cabernet for dinner and crafting marketing copy while your team is still brainstorming.
To help you navigate the rapidly evolving landscape of 2025, we have put together this guide to commonly used AI terminology. The pervasiveness of these terms reflect how AI is shaping business, lifestyle and culture—marking the breakthrough of this innovation from research labs to the everyday tools and services we use.
Mastering these concepts is crucial, whether you are assessing investment opportunities, seeking to understand how it makes our devices smarter or simply curious about the forces that are transforming modern life.
Read part 1 here: AI decoded: what those buzzwords really mean
1. Generative AI
Above An introduction video to ChatGPT’s latest image generation tool (Video: OpenAI)
Generative AI is a type of AI that creates content—like text, images, music or videos—based on patterns learned from existing data. It is one of the most common types of AI we encounter today through tools like ChatGPT and Claude.
Like a creative assistant, it uses its prior training to produce something new that feels familiar. For instance, give it a stack of fairytales, and it might write you a brand-new one in a similar tone and style.
The launch of ChatGPT’s new image generation tool earlier this year has shed light on the ethics of generative AI, especially after its capacity to create Ghibli-like images went viral. It has sparked ongoing discussions about its potential impacts on the creative industry, questioning whether what AI creates would exploit existing works from artists or enrich their creative fuel.
Read more: 6 AI innovators revolutionising industries in Asia
2. Multimodal AI

Above Gemini, developed by Google Deepmind, is a multimodal AI that can interpret various inputs such as images, text, code and video (Photo: Getty Images)
Multimodal AI refers to AI systems that can understand and process multiple types of information or “modes” at once, such as text, images and audio. This allows them to combine different information sources to understand situations more comprehensively.
Think of it like how humans use multiple senses: we hear words, see facial expressions and notice body language simultaneously to understand a conversation. Similarly, multimodal AI might analyse a video by recognising spoken dialogue, understanding visual actions and processing any text that appears on screen. This creates a richer understanding than any single mode could provide alone.
You might experience multimodal AI in tools like ChatGPT Vision or Google Gemini, where you can upload an image and get detailed text-based analysis or ask questions about it, seamlessly blending visuals and language.
Read more: AI leaders are unlocking the future with technology
3. AI companions

Above A user customises an avatar for their personal AI chatbot Replika through a smartphone app (Photo: Getty Images)
AI companions are virtual assistants or digital friends powered by AI. These applications are designed to interact with you in a human-like manner; they can chat, help with tasks, answer questions or even provide entertainment.
Unlike simple tools, they aim to offer a sense of relationship and personalisation. They learn your preferences over time, adapting to your needs and habits.
A virtual assistant on your phone might notice you typically set morning alarms and eventually begin suggesting them at your usual times. Some more advanced companions can even engage in casual conversation or remember details from past interactions to create a more continuous relationship.
Yet, there is some controversy surrounding the impact of the AI companion bots on their users. In 2024, a mother in the US filed a lawsuit against Character Technologies, Inc, claiming that its bot contributed to her son’s suicide. She alleged that the teenager openly discussed suicidal thoughts and engaged in highly sexual conversations with it.
Read more: Meet Moflin, Casio’s emotional support robot, and other AI companions
4. Computer vision

Above A display showing the image processed by Quantum AI security camera at a booth during the Mobile World Congress 2024 in Spain (Photo: Getty Images)
Computer vision enables machines to “see” and make sense of visual information from the world around them. Just as our eyes capture images and our brains interpret them, computer vision systems use cameras to capture visual data and algorithms to understand what they are looking at.
This field encompasses a range of capabilities: image classification, object detection, image segmentation and facial recognition. It has transformed numerous industries, from autonomous vehicles that rely on computer vision to navigate safely to medical imaging systems that help doctors spot diseases in X-rays and MRIs with greater accuracy.
5. Digital twins

Above A tablet displays the buildings at The Bund in Shanghai using a digital twin app (Photo: Getty Images)
Digital twins are virtual replicas of real-world objects, systems or processes. Imagine having a digital model of your car, your house or even an entire factory that mirrors how the real thing operates and behaves.
They have become increasingly valuable across industries to improve efficiency and predict potential issues. For example, in luxury real estate, digital twins can preview smart home configurations or model interior lighting throughout the day before the property is ever built.
Read more: The AI book scraping issue explained
6. Synthetic media
Synthetic media refers to content generated or altered using AI and other digital technologies. This includes images, videos, audio and text that are either entirely created by AI or manipulated to create new, realistic experiences.
You might encounter synthetic media in social media filters that transform your appearance in real time or in music, where AI can compose songs that sound remarkably like popular artists performed them.
Above A CBC news video explores the potential misuse of AI-generated videos in elections (Video: CBC News)
While this technology presents creative opportunities, it also raises significant concerns regarding authenticity and trust. In some instances, individuals have been deceived by synthetic media featuring the voices of their loved ones in distress, leading them to transfer thousands of dollars before realising they had been scammed.
Read more: 7 most expensive AI art pieces ever sold
7. Edge AI

Above One common application of edge AI is wearable health devices that track and analyse health data instantly, enabling real-time insights and decisions (Photo: Getty Images)
Edge AI is a type of artificial intelligence that runs directly on devices such as smartphones, security cameras and smart home gadgets rather than depending on distant cloud servers. This allows the AI to make decisions and analyse data right where it is needed, often instantly and without requiring an internet connection.
For instance, you might notice edge AI working when your phone recognises your face to unlock itself or when security cameras spot unusual activity and alert you straight away. By processing data locally, edge AI helps to protect your privacy, reduces delays and saves internet bandwidth.
This technology is becoming more widespread as devices become smarter and faster, enabling everything from self-driving cars to health monitors to work more efficiently and safely. However, maintaining AI security on these devices presents new challenges, as their physical access makes them more vulnerable to theft, tampering or loss. Updates and security patches are also harder to manage.
Read more: How Marion Carré and Ask Mona are using AI to transform the museum experience
8. Prompt engineering

Above A user typed a prompt to inquire about OpenAI’s ChatGPT (Photo: Getty Images)
Prompt engineering is the skill of crafting questions or instructions for AI systems in ways that produce the most valuable and accurate responses.
Think of it as learning how to communicate effectively with AI. Just as you might phrase a question differently depending on whom you’re asking, prompt engineering involves understanding how to frame your requests to AI systems for optimal results.
For instance, asking a vague question like “What do you think?” might yield a generic response. However, asking something specific, such as “What are three critically acclaimed British films released in the past two years?” is more likely to generate a precise and helpful answer.
As AI becomes more integrated into our daily lives, understanding how to communicate our needs to these systems effectively becomes an increasingly valuable skill.
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