Generative AI Models: Types, Applications, Benefits and Trends

Generative AI Models: Types, Applications, Benefits and Trends
May 13 2024

Generative AI is the talk of the town now. Businesses discuss how generative AI is changing how they do business, interact with customers, and deliver customer service.

On the other hand, creative professionals are looking at generative AI to speed up their creative endeavours.

Of course, the applications of generative AI seem exciting and long-term, but what are they?

  • How does generative AI help your business?
  • How can you use the same for your business?
  • What are the trends and opportunities in the field of generative AI?

In this blog post, we discuss generative AI and what you need to know about it as a business owner.

Let’s start now.

What Is Generative AI?

Generative AI is a branch of AI. This brand deals with artificial intelligence models that can generate new, original content like text, images, audio, or code. These systems are pretrained on vast datasets. This training allows them to understand patterns and relationships and use that knowledge to create novel outputs.

AI systems use these capabilities to write stories, create music, or design a website from scratch. ChatGPT, Gemini, Dall-E, Midjourney, etc., are some of the most popular generative AI systems in the world now.

If you look at the world, generative AI has already made considerable contributions to fields like art, media, and software development, etc.

What Are Generative AI Models and Their Components

Generative AI is concerned with the field of AI that can produce content, and generative AI models are quite different. On the other hand, generative AI models refer to a specific model that’s used to carry out content-generation activities.

They learn from existing data to generate new, similar outputs. Generative AI models are also widely used for generating images, text, music, etc.

Although most generative AI models aim to create original content, not all share the same components.

Here are a few components they have for executing various generative tasks.

Variational Autoencoders (VAEs)

VAEs consist of three elements:

  • A latent space: This acts as a compressed data bottleneck.
  • A decoder network: This generates new outputs from the latent space.
  • An encoder network: This translates input data into a representation in the latent space.

Generative Adversarial Networks (GANs)

There are two elements in GANs:

  • A discriminator: This evaluates the samples and separates them from the original.
  • A generator: This generates new samples, like images, videos, etc.


Transformers are the neural network that makes the generative process of creating texts, images, or videos happen. There are two layers—encoder and decoder layers—in the transformers to ensure that the generative process happens smoothly.


The autoencoder has two elements:

  • An encoder
  • A decoder

Here, the decoder rebuilds the original input from the latent space once the encoder has done compressing the input data into a latent representation.

There are several autoencoders, such as denoising autoencoders, variational autoencoders, etc.

Applications of Generative AI Models in Different Domains

Generative AI models are revolutionizing industries like art, healthcare, and gaming. These models tackle complex tasks, streamline operations, and offer personalized experiences.

Let’s understand the impact of generative AI across diverse domains.

Art and design

Generative AI improves creative activities by aiding idea generation, automating tedious tasks, and facilitating collaborative production. Using generative AI models, creators can collaborate.

Businesses also utilize the content generation capabilities of AI to enhance user experiences through tailored content and real-time visuals.

Natural Language Processing (NLP)

Generative AI influences NLP by generating human-like speech for chatbots and content creation tools. Generative AI also excels in text summarization and sentiment analysis.

All these help businesses transform customer care and data analysis. One thing to keep in mind is that the benefits of generative AI in customer service are not theoretical.

Many businesses, like Amazon, Microsoft, etc., already use AI technology to deliver better customer services.

Music and creative composition

Generative AI simplifies music composition and creation. It helps artists experiment with melodies, harmonies, and genres, fostering original soundscapes and compositions.

With the help of generative AI solutions, artists can experiment extensively to create unique, original music. They can also speed up the composition. Using generative AI can help them reduce the cost of music production, as well.

The songs created by AI have also been received well by the audience.

Gaming and virtual reality

Generative AI creates dynamic storylines, lifelike NPCs, and realistic landscapes that are essential for immersive gaming experiences. This helps the games elevate the gameplay and user engagement.

Games like No Man’s Sky, Minecraft, etc., use generative AI for worldbuilding to ensure that each user gets a unique gaming experience.

The use of generative AI in game development has helped businesses reduce costs and time to market.

Fashion and design

The fashion and apparel industry has also taken advantage of generative by using it to create unique designs and garments.

Beyond creating designs with generative AI, the apparel industry used it to optimize the manufacturing process, usage of fabric, etc. Another area where the industry uses generative AI is in providing personalized style advice to users.

All these help boost innovation and custom service in the apparel and fashion industry.

Medicine and Healthcare

Healthcare is another area where the applications of generative AI are limitless. Generative AI has already made significant contributions to disease diagnosis, treatment prediction, medical image processing, etc., in the medical field.

With the help of generative AI, the sector can improve patient outcomes while saving time and money through automation.

Many healthcare institutes and research centres already use the capabilities of generative AI to make significant improvements in disease diagnosis and treatments.

Robotics and automation

Generative AI advances robotics by enabling robots to adapt to new environments, interact naturally with humans, and perform complex tasks.

While AI has long been in use in robotics, the advent of highly capable, powerful generative AI models has revolutionized numerous industries like transportation, logistics, healthcare, etc.

As more powerful generative AI models are developed, their applications in robotics and automation will continue to grow.

Different Types of Generative AI Models

There are different generative AI model types in the market now. Each model uses a different technique and has unique uses.

Here are the most popular types of generative AI models.

Generative Adversarial Network (GAN)

GANs have two parts:

  • A generator
  • A discriminator

The generator crafts new data resembling the training set, while the discriminator acts like a detective, telling apart the real from the fake.

From creating lifelike images to composing music and generating synthetic human faces, GANs excel in a variety of generative tasks.

Transformer-based models

Transformers have no equal in language processing. You can equate transformer-based AI models with a polyglot that can understand and translate languages.

They use self-attention to grasp context and dependencies across sentences to carry out efficient translations and generate texts.

Some of the most popular transformer-based AI models are GPT-3.5, GPT-4, etc.

Variational Autoencoder (VAE)

VAEs are mostly used for unsupervised learning. They merge the concepts of autoencoders and probability to understand the dataset’s structure and relationships.

Here’s how they work:

  • The encoder condenses input data into a simplified latent space
  • The decoder reconstructs the original data from this space

VAEs are excellent at mapping data to a compact space and then reconstructing it. By doing this, they also uncover patterns and generate new samples, from images to text.

These capabilities make them suitable for unsupervised learning activities.

Autoregressive models

Autoregressive models piece together new data by looking at one element of the input data at a time to form the complete picture.

A language model predicting the next word in a sentence according to the words that come before it is an example of this model. Autoregressive models are often built with Recurrent Neural Networks and are exceptional in tasks like speech recognition and language processing.

This makes the model adept at generating sequences of images and videos as they can take inspiration from what came before.

Boltzmann machines

They are a type of stochastic recurrent neural network that can learn a probability distribution as per the inputs given. The idea behind the model is inspired by statistical mechanics, particularly the Boltzmann distribution from physics.

Boltzmann Machines consist of two main types of units:

  • Visible units that represent the input data
  • Hidden units that aid in learning and generalization

Training the machine involves adjusting the weights to minimize the difference between the observed data distribution and the distribution represented by the network.

They are often used in unsupervised learning tasks like dimensionality reduction, feature learning, and collaborative filtering.

Flow-based models

Flow-based models are a type of generative AI model that creates realistic and high-quality output data that resembles the input data.

These models are used extensively due to the following:

  • They can generate high-quality data samples that closely resemble real-world examples.
  • Flow-based models can handle massive datasets efficiently, even those with complex structures.
  • They are capable of straightforward analysis of the generated data through calculations involving probability.

While flow-based models are an efficient way to generate realistic data, they don’t fit every situation.

How Generative AI Models Work: The Step-by-step Process

Generative AI models create new content by looking at the patterns and their relationships from a large data set. While that’s the basis of how every generative AI works, we can further break down how it works.

Let’s look at the steps here to understand it better.

Step #1: Gathering data

In the first step, you collect large sets of data that your AI model will use to train itself. The model analyzes the data set to learn the relationships and patterns in the content, such as images, videos, articles, audio, etc.

Step #2: Data preprocessing

After collecting the data, you need to preprocess it before being fed into the AI model. This preprocessing helps the data to be free from error and clean. You also need to structure the data adequately to help the model understand the data better.

Step #3: Training the model

In this step, the developers use preprocessed data to train the generative AI solution. The model uses a variety of machine learning algorithms and NLP techniques to analyze the data and find correlations between them. This enables the model to learn to create pieces of content based on new inputs.

Step #4: Model validation

Before you deploy the model for actual tasks, you need to validate the model for its performance. This is the stage where you assess the output of the model and ensure that the outputs of the model are good enough and as expected in terms of quality, accuracy, and relevancy.

Step #5: Content generation

After validating the generative capability of the AI model, in this step, you move forward to using the model for creating content. Based on the purpose and generative AI model, it may be used to create text, image, video, or audio output.

Step #6: Model refinement

In this stage, human content specialists evaluate the output of the AI model. This refinement can happen in diverse ways. Sometimes, the best output may be chosen. At other times, the output may be tweaked to meet the requirements.

The Future of Generative AI: Trends and Opportunities

The future of generative AI looks extremely promising and full of opportunities. According to Global News Wire, the global market for generative AI is expected to grow by more than 34.3% by 2023.

That’s a very bright outlook and let’s try to analyze it here.

Future trends of generative AI

The evolution of generative AI is nothing but guaranteed. How it will evolve is anyone’s guess. However, we have some trends to look at in this regard.

1. Improved quality and realism

High levels of realism and fidelity are on the horizon for generative AI. The significant improvement in the quality of content like text, videos, and images is astounding. This is going to continue.

2. Cross-domain content generation

Generative AI solutions will develop the ability to cross-domain creativity. This means that it will start generating artwork in different forms, creating 3D models with text inputs, composing music from visual prompts, etc. By bridging unrelated creative domains, AI will foster cross-disciplinary artistic creations.

3. Better control and guidance

One gripe that many creators using generative AI have is that it lacks control. And this is going to be a trend in the future where generative will try to offer more control over the output.

4. Responsible and ethical AI

The ethical sides of AI have been a huge area of discussion as generative AI is making its progress in the world. The industry will see more efforts from the developers and regulations from the government to ensure that AI is used responsibly and ethically.

5. Continued integrations

Generative AI has already been integrated into many emerging technologies. Microsoft uses ChatGPT in its search engine, Bing. Likewise, Samsung uses AI in their mobile phones, and Adobe uses AI in their products. This trend will continue to grow, and more integrations will happen.

6. Continuous leading and adaptive AI

As generative AIs become more powerful, they will become capable of learning and adapting to different settings. Technology companies are already working on models that can update their knowledge incrementally from new data. This allows them to generate content over time and its use.

7. Explainable and interpretable AI

Most generative AI tools available in the market now don’t offer any insights into their decision-making process. As a result, the decision-making process is murky and creates the need for AI to explain its logic behind outputs. As businesses need more transparency and responsibility from AI, this will soon become a reality, too.

8. Hybrid and model fusion AIs

There are already generative AI models that combine the capabilities of different models and techniques for hybrid approaches. It is beyond combining AI methods like unsupervised learning, reinforcement learning, or meta-learning, it is more of bringing the capabilities of different AI models together for more capable systems.

9. Real-time generative capabilities

Interactive and real-time generative AI has been on the radar of developers for some time now. As users are looking for better AI experiences, this will take center stage soon. This will make it easier for users to create content by interacting with the models in real-time.

Future opportunities for generative AI

Thanks to the increased interest in AI in recent years, generative AI has a lot of opportunities in the future. Businesses are already investing millions of dollars into developing powerful generative AI models.

Let’s look at some of the promising opportunities in generative AI.

  • Generative AI offers numerous prospects for highly personal experiences via interactive AI capabilities. This is crucial for fields, like entertainment, advertisement, gaming, ecommerce, etc., where such immersive experiences can make a lot of difference.
  • AI is already making it easy for creators to collaborate with various models of AI for better and more efficient creative efforts. This will happen even more fervently in the future as capable generative Ais will not only generate ideas but also help explore idea variations and offer unique suggestions.
  • Data augmentation and synthesis are going to be huge in the future thanks to the innate capabilities of AI for data analysis. The opportunities for employing generative AI models to synthesize and augment new data samples are numerous. This leads to model performance improvement and addresses data imbalance or scarcity.
  • There are numerous opportunities for generative AI in research and simulations in biology, chemistry, healthcare, etc. Using AI models, researchers can build and augment synthetic data for simulating complex phenomena and exploring hypothetical scenarios. This can also accelerate scientific inventions, experiments, etc.


Generative AI has shocked the world with its human-like content generation capabilities. It has enabled businesses and creators alike to accelerate their creative activities for more efficiency and productivity. And there is no doubt that generative AI will continue to evolve and help businesses. While businesses are keen to use generative AI for diverse purposes, it is integral to also know how different generative AI model types work and how they can help your business. We hope that this blog post has provided you with adequate insights about generative AI.

Developing custom AI for your business using the capabilities of generative AI can help your business in more ways than one. If you are looking for a reliable AI development company to work with, Fullestop is one of the best in India. With years of experience in creating advanced applications, websites, portals, and AI solutions for businesses in India and abroad, we can help you, too

Speak to our client support team and let us know your AI development requirements. Our team is ready to provide you with a free consultation.

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