AI Literacy.
Understand the technology.
Use it with better judgement.
A practical guide to understanding, using and evaluating artificial intelligence, from the basics to expert practice.
The next level begins
with a good question.
Read in order or jump to the topic you need. There is no entrance exam. There is room to learn.
Foundations
Start with the ideas that help you tell a useful tool from an exaggerated promise. No programming experience is needed.
- Distinguish AI, machine learning and generative AI.
- Recognise what a model can and cannot guarantee.
- Identify tasks that do not need AI.
1.1What is artificial intelligence?
Artificial intelligence is a field that develops systems able to perform tasks such as recognising patterns, producing language or supporting decisions. It is not a single tool, and it does not imply consciousness, intent or human understanding.
In machine learning, patterns are adjusted using data. Generative AI produces new content, such as text, images or code. Rule-based automation follows predefined instructions: sending a reminder on a set date may not require AI.
AI can help analyse information or produce a first draft, but its usefulness depends on the goal, data quality and human review. Before adopting it, compare it with a simpler solution and decide how you will check the result.
Sorting invoices by a fixed rule may be conventional automation. Classifying widely varied descriptions may justify a model. Drafting a first version of a document is a possible use of generative AI.
Choose the simplest method that solves the problem. Not every process needs AI.
1.2How does a model learn?
During training, a model adjusts parameters to reduce errors against a defined objective, using examples. During inference, it applies the learned patterns to a new input. Quality depends on the data, the training objective and the context in which the model is used.
A language model predicts sequences of text units called tokens. Its parameters do not work like a library of verifiable documents. A product may add search or other sources, but that is a specific capability that needs to be confirmed.
Asking a model without search about a recent regulation may produce an outdated answer. Asking for a link does not guarantee that the link exists or supports the claim.
Distinguishing the model from the tools connected to it prevents assumptions about capabilities it does not have.
1.3Fluency is not the same as truth
An answer can sound confident while containing invented facts, nonexistent references or incorrect reasoning. These errors are often called hallucinations. A confident tone is not a reliable measure of accuracy.
A model may also omit information, reproduce bias or answer the same question differently. Limitations vary by task and version. The greater the impact of an error, the more rigorous the checks and human oversight should be.
Use a draft message as a starting point. For a tax deadline, medical instruction or contractual obligation, confirm the source and consult the appropriate professional.
Responsibility for a decision does not disappear because a machine suggested it.
Try it yourself
Choose three tasks from your day. For each, write down the desired result, the data it needs and whether a simple rule would solve the problem. Explain one task for which you would not use AI.
Responsible use
Learn to provide context, work in stages and protect the information you enter into a tool.
- Write clear, verifiable requests.
- Review an answer before using it.
- Minimise data and limit permissions.
2.1Write a request with context and criteria
A good request identifies the goal, audience, relevant context, constraints and output format. Say how you will recognise a good answer. Merely assigning a role, such as “you are an expert”, does not guarantee knowledge or quality.
Separate your instructions from the documents to be analysed, and explain that those documents are reference material. Ask the system to flag gaps instead of filling them with guesses. A clear request improves direction but does not eliminate errors.
“Using only the supplied text, summarise the deadlines in five points for an administrative team. Give the source passage for each deadline. If a date is absent, write ‘not stated’.”
Goal + context + limits + format + verification criteria is a useful starting point.
2.2Work in stages and compare alternatives
Break a complex task into parts: understand the requirements, produce a proposal, review it and test it. When an answer fails, describe the specific error and give an example of the expected result. Keep useful versions of your requests.
Compare the output with the original document, the requirements and a solution made without AI. Ask for short explanations and verifiable evidence, without treating a persuasive explanation as proof. For code or calculations, run tests and validate results.
Before asking for a complete presentation, ask for an outline. Review the audience and arguments. Then develop each part and verify facts, figures and image rights.
Iterating against criteria works better than repeating the same request and hoping for a better answer.
2.3Personal data, secrets and internal information
Before entering data into a tool, check authorisation, purpose, service terms, retention and access. Business and personal accounts may have different settings and contracts. Do not assume confidentiality merely because a service is paid.
Use only the information needed. Removing a name may not anonymise a document: roles, dates and events can also identify someone. Never share passwords, API keys or authentication codes. Sensitive data requires its own assessment.
To test a customer-service summary, create clearly labelled fictional examples. Before using real conversations, confirm permissions and data handling with the people responsible in your organisation.
Being able to upload a file does not mean you are authorised to do so.
Try it yourself
Write a request to summarise a public document. Add an output format, a rule for missing information and a verification step. Test two versions and record the differences without including personal data.
Critical thinking
Move from use to evaluation. Learn to question sources, recognise bias and understand responsibility.
- Check claims against independent sources.
- Recognise differences between groups and contexts.
- Distinguish technical ability from legal permission.
3.1Verify sources, figures and references
Open cited sources and find the passage supporting each important claim. Check the author, date, context and version. A real reference may have been misinterpreted, and several pages may repeat the same error.
Prefer primary documents for legal requirements, data and technical specifications. For calculations, check units, assumptions and formulas with an appropriate tool. Asking the same model to confirm its own answer is not independent verification.
If an answer says an obligation applies to every company, find the official text and its exceptions. Record what the source actually says and what remains unconfirmed.
A citation is a lead for investigation, not an automatic seal of truth.
3.2Bias, representativeness and context
Data can reflect inequalities, omissions or a reality unlike the one in which a system will be used. A good average result can hide failures in one language, group or type of case. Look for who is poorly represented.
Define what would count as a significant error and compare results across relevant scenarios while respecting privacy. Include people who know the context in the evaluation. No single metric proves fairness, suitability or the absence of discrimination.
A request classifier may work well on formal messages and fail on informal Portuguese. Evaluate these cases separately before making it available to the team.
Always ask: for whom does it work, in what situation and with what consequences?
3.3Rights, transparency and responsibility
Content available online is not necessarily free of copyright restrictions. Personal data remains subject to applicable rules when processed with AI. Check licences, purpose and contractual terms before reusing data or publishing outputs.
Article 4 of the EU AI Act addresses the AI literacy of people operating systems in covered contexts. The GDPR and other rules may also apply. The specifics depend on the organisation’s role, the system and its use; reading this guide does not replace that assessment.
Before publishing a generated image for a campaign, review rights, trademarks, likenesses and the tool’s terms. Decide who approves publication and what transparency is needed.
Document decisions and know who is accountable for the system and its effects.
Try it yourself
Choose an answer containing three factual claims. Mark each as confirmed, incorrect or needing verification. Record a primary source and one limitation. Explain the impact of publishing the answer without review.
AI in business
Turn an opportunity into a small, measurable and reversible experiment, with people responsible at every stage.
- Map the process before choosing tools.
- Define oversight and operating limits.
- Measure usefulness without inventing gains.
4.1Choose a problem, not a tool
Describe the current process: inputs, tasks, owners, decisions, exceptions and the expected output. Identify the specific problem and establish a baseline, such as time spent, rework or errors. Compare AI with simplification, training or conventional automation.
Assess whether suitable data, authorised access and the means to maintain the solution are available. The existence of a tool does not make an opportunity viable. Automating an unstable process with no owner may simply create problems faster.
Instead of “we need an assistant”, say “the team spends too much time finding approved procedures”. First test whether better document organisation solves part of the problem.
A solution is useful only if it improves a real process within acceptable limits.
4.2Design human oversight and permissions
Define what the system may suggest, read, change or send. Separate preparing an action from executing it. Operations with financial, legal or third-party impact may need explicit approval. Oversight needs time, information and authority to intervene.
Apply least privilege: give each integration only the access it needs. Plan for exceptions, failures and a way to stop the system. An approval button that is hard to understand or triggered automatically is not meaningful human control.
A tool can prepare a draft reply to a customer. Sending it requires review by a person who can see the original message, sources and proposed changes.
Build control into the process, not just into a warning sentence.
4.3Run a pilot and measure results
Start with a limited scope and acceptance criteria set before testing. Compare with the baseline and also record errors, review cost, exceptions and effects on people. Time saved at one step may be lost at another.
Choose a representative set of cases, including difficult situations. Decide in advance when to continue, correct or stop. A successful demonstration does not prove production readiness, financial return or reliability at scale.
In a classification pilot, measure errors by category and the time needed to correct them. Compare the whole process with the previous one, not just the speed of the model’s first answer.
Define success and stopping conditions before you see the results.
Try it yourself
Create a pilot brief: problem, current process, authorised data, owner, metric, test cases, budget and stopping condition. Include a non-AI alternative and a plan for returning to the previous process.
Advanced level
Explore context, information retrieval and technical evaluation. These concepts help you work with development teams and test solutions.
- Relate context, cost and model behaviour.
- Distinguish RAG, prompting and model fine-tuning.
- Define representative, reproducible evaluations.
5.1Tokens, context and generation settings
Tokens are units used to represent text; they do not always correspond to whole words. A context window limits the information processed in one interaction. More context does not guarantee equal attention to every detail or a better answer.
Settings such as temperature affect sampling when available. A low temperature does not guarantee truth or perfectly deterministic results. Record the model, version, request, sources and settings when comparing experiments. Consider latency, usage limits and total cost.
When analysing a long document, compare working section by section with sending the whole text. Check whether relevant points are found and connected correctly, including those in the middle.
More context and more generation can increase costs without solving a quality problem.
5.2RAG, embeddings and fine-tuning
Retrieval-augmented generation (RAG) combines information retrieval with generation: it finds documents or excerpts and gives them to a model as context. Embeddings represent information as vectors to support similarity searches. Search may also combine keywords, filters and result reranking.
Quality depends on document preparation, retrieval, permissions and how answers use sources. RAG does not eliminate hallucinations or make documents automatically safe. Fine-tuning changes a model’s behaviour using examples; it is not the same as maintaining an up-to-date document collection.
In an internal assistant, filter documents by the person’s access rights before passing them to the model. Then test whether the answer relies on the right passages and admits when it cannot find enough information.
Separate retrieval failures, generation failures and authorisation failures.
5.3Evaluate quality beyond one successful example
Build test cases with inputs and expected results or evaluation criteria. Keep examples used during development separate from a reserved set for testing changes. Include normal cases, edge cases, missing information and adversarial inputs.
In classification, precision and recall measure different things; false positives and false negatives can have different costs. In retrieval, metrics such as recall@k assess whether relevant information was found. For generation, combine source checks, rules and human review. An AI-based evaluator also needs validation.
A new version may improve the average while making urgent requests worse. Compare results by scenario, review human disagreements and preserve the cases that exposed regressions.
Useful evaluation reflects the real decisions and risks of use.
Try it yourself
Design ten evaluation cases for a document assistant: include an answer that is present, one that is absent, conflicting sources, an outdated document and a document the user is not authorised to read. Define how to distinguish each failure type.
Expert level
Go deeper into the criteria used to design, approve and maintain systems. Expertise requires practice, continuous evaluation and knowledge of the domain.
- Explain architectural choices and trade-offs.
- Anticipate attacks and limit agent actions.
- Operate with observability, review and rollback.
6.1Architecture choices and reliability
Compare solutions for quality, privacy, cost, latency, availability and maintenance. A larger model, a chain of agents or self-hosted infrastructure is not automatically better. More components bring more dependencies and failure modes to understand.
Define input and output contracts, size limits, timeouts, concurrency controls and failure behaviour. Automatically retrying an operation that sends messages or charges payments can duplicate effects. Consider idempotency, retry limits and compensating actions where relevant.
If extraction fails, the process can send the document for manual review. It should not invent fields or repeat an external action indefinitely without knowing whether the previous attempt succeeded.
Choosing an architecture also means explaining how it fails and recovers.
6.2Agent security and prompt injection
An agent combines a model, tools and a decision loop. Text from pages, messages or documents may contain malicious instructions, known as prompt injection. Treat that content as untrusted data, not permission to act.
Security controls must exist outside the model: authentication, authorisation, parameter validation, restricted tools and confirmation for sensitive effects. Separate data and secrets, restrict network destinations where appropriate and keep proportionate logs. Asking a model to “ignore attacks” is not a sufficient security boundary.
A retrieved document asking to send a customer database to another address does not change an assistant’s permissions. The application must block the access and transfer regardless of the generated text.
The model may propose an action; the application must check whether it is allowed.
6.3Monitoring, drift and continuous governance
Version models, requests, sources, configurations and evaluations. Changes to a provider, documents or user habits can alter behaviour. Monitor quality by scenario, incidents, latency and costs, using logs that do not expose personal data unnecessarily.
Assign owners, periodic reviews, access management, incident response and criteria for pausing or rolling back. Drift means relevant changes in data or the relationships observed; not every performance decline has the same cause. Investigate before adjusting, and revalidate controls after changes.
After an update, answers without sources become more common. Compare versions, documents and request profiles. If the criteria are no longer met, narrow the scope or roll back while investigating.
A system approved today must continue to demonstrate its suitability tomorrow.
Try it yourself
Conduct an architecture review: draw data flows and trust boundaries, list permissions and external effects, propose adversarial tests, and define monitoring, owners, rollback and incident response. Request independent review.
A glossary to return to
whenever you need it.
Technical terms make more sense when we can explain what they mean.
- Algorithm
- A sequence of steps for completing a task. An algorithm can be simple and need no AI.
- Artificial intelligence (AI)
- A field developing systems that can recognise patterns, generate content or support decisions.
- Rule-based automation
- A process that follows predefined instructions without learning patterns from data.
- Machine learning
- Methods that adjust patterns from data to meet a defined objective.
- Generative AI
- Systems that produce content such as text, images, audio or code from learned patterns.
- Language model
- A model trained to process and generate language sequences; it may be part of a system with other capabilities.
- Training
- The process of adjusting a model’s parameters using data and defined objectives.
- Inference
- Using a trained model to produce an output from an input.
- Token
- A unit of representation used by a model. It may be a word, part of a word or another symbol.
- Prompt
- Instructions and context supplied to a system to guide a response or task.
- Context window
- The amount of information a model can process in one interaction, usually measured in tokens.
- Hallucination
- Incorrect or unsupported content presented by a generative system as plausible.
- Bias
- A systematic tendency that can distort results and affect people or situations unevenly.
- Embedding
- A numerical representation used to compare information according to relationships learned by a model.
- RAG
- Retrieval-augmented generation: supplying a model with material retrieved from external sources.
- Fine-tuning
- Additional training on examples to adapt a model’s behaviour or performance.
- Agent
- A system that uses a model and tools in a decision loop to perform tasks within defined limits.
- API
- An interface that lets systems communicate through specified operations and formats.
- Prompt injection
- An attempt to make a system follow unauthorised instructions found in input or external content.
- Least privilege
- Giving only the access needed for a task, limiting the impact of mistakes or attacks.
- Precision and recall
- In classification, they measure how many positive predictions are correct and how many actual positives are found, respectively.
- Evaluation set
- Cases kept aside to measure behaviour and compare changes against consistent criteria.
- Drift
- Changes in data or relevant relationships that can alter how suitable a system is over time.
- Observability
- The ability to understand a system’s behaviour using appropriate signals and records.
- Human oversight
- People with the information and authority to assess, correct or interrupt a process.
- Rollback
- A controlled return to a previous version or process when a change fails to meet the defined criteria.
Good questions.
Sources to explore further.
Consult original documents and confirm which versions apply to your situation.
This is an educational guide for independent study, not a certification or legal advice. Advanced professional work requires practical experience, domain knowledge and continuous evaluation.
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