Foundations

AI

Also called: artificial intelligence, LLM

In the coding-agent world, "AI" almost always means a large language model: a system that predicts the next chunk of text from everything it has been shown. It is not a mind and it is not a database. It is a very good pattern completer.

James Phoenix
Understanding Data Updated July 2, 2026

When people say "the AI wrote this code" or "let the AI fix it," they are almost never talking about artificial intelligence in the science-fiction sense. They mean a large language model wired into a tool that can read and change files. Getting this distinction right is the difference between using these tools well and being surprised by them constantly.

What it actually is

A language model is trained on an enormous amount of text and code. During training it learns one skill extremely well: given some text, predict what comes next. Everything else you see, answering questions, writing functions, refactoring a module, is that single skill applied over and over. The model reads your prompt plus the code it has been shown and produces the most plausible continuation.

That framing explains most of its behaviour:

  • It is fluent because plausible text is what it optimises for.
  • It sometimes invents things (hallucination), because a confident-sounding continuation can be wrong.
  • It has no memory of you between separate conversations, because each request is scored on the text in front of it, nothing more.

Why the distinction matters for coding

Treating the model as a reasoning colleague sets you up to be let down. Treating it as a fast, well-read pattern completer that needs good inputs sets you up to get value. The practical takeaways:

  • Context is everything it knows for this task. It only "understands" your codebase to the extent the relevant parts are in front of it. That is why the context window is the resource you manage most carefully.
  • It is a component, not the whole system. On its own a model just emits text. Bolt on tools and a loop and you get an agent that can act.
Note
Throughout this dictionary, "AI" and "the model" are used interchangeably to mean the language model at the centre of a coding tool. When a distinction matters, the specific term is used.

The rest of the foundations section unpacks the machinery: what a model is made of, how text becomes tokens, and why the same prompt can give you two different answers.

Related terms

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