AI is suddenly in every headline, every product and — whether you've noticed or not — probably already in your business. This is a plain-English tour of what it actually is, how you interact with it, and how to put it to work safely. No maths, no jargon.
1. What today's AI actually is
Forget science-fiction robots. The AI everyone's talking about is, at its heart, a very sophisticated pattern-prediction tool. It has been trained on enormous amounts of text and data, and it's brilliant at recognising patterns and producing a likely, useful response. It isn't conscious, it doesn't "understand" the way a person does, and it isn't looking facts up in a database — it's predicting what a good answer looks like.
2. LLMs — the engine behind ChatGPT, Claude, Copilot and Gemini
The best-known AI tools — ChatGPT (from OpenAI), Claude (Anthropic), Google Gemini and Microsoft Copilot — are all powered by something called a Large Language Model, or LLM.
Here's the simplest way to picture it. During training, the model reads a vast slice of the internet and books, and learns the statistical relationships between words — stored as billions of tiny numbers called "weights." When you ask it something, it uses those weights to predict the next word, then the next, then the next — stringing them together into sentences. It's a bit like the predictive text on your phone, but astonishingly more capable.
Because it predicts plausible text rather than retrieving verified facts, an LLM can sound completely confident and still be wrong (the industry calls this a "hallucination"). That's exactly why AI needs a human in the loop for anything that matters — and why how you deploy it matters as much as which tool you pick.
At a glance: the main AI tools for business
They overlap a lot, but each has a sweet spot. A quick, non-technical cheat-sheet:
| Tool | Best at | Good to know for business |
ChatGPT OpenAI | The versatile all-rounder — writing, brainstorming, analysis, coding, and generating images. | Huge ecosystem and custom "GPTs." Use the Team or Enterprise plans for proper business-data protection. |
Claude Anthropic | Careful writing, reasoning and coding, and working through long documents — with a strong safety focus. | Excellent for contracts and detailed analysis. Doesn't create images. Claude for Work adds team controls. |
Microsoft Copilot Microsoft 365 | AI inside your Microsoft 365 — Word, Excel, Outlook, Teams — working on your own company data. | Respects your existing permissions. Now runs on a choice of models (including OpenAI's and Anthropic's Claude) and is gaining agents that carry out multi-step work for you. |
Google Gemini Google Workspace | AI inside Google Workspace — Gmail, Docs, Sheets, Meet — and strong with images, audio and video. | The natural fit if your business runs on Google. Also works within your Workspace data and permissions. |
| Perplexity | An "answer engine" — research questions answered from the live web, with its sources cited. | Best when you need current information and want to see exactly where the answer came from. |
AI moves fast, and these tools blur together more every month — treat this as a current snapshot, not the final word.
3. Why can ChatGPT create images but Claude can't?
A common source of confusion. The language model only deals in text. Making pictures is a separate skill that some providers have added and others haven't. OpenAI has bolted an image generator onto ChatGPT, so it can produce images; Google can too. Claude, by contrast, is focused on text, reasoning and analysis — it can look at an image you give it and describe or analyse it, but it won't create one. So the differences you notice between tools are usually about the extra capabilities each company has built and connected — not the raw "intelligence." (Capabilities change fast, so treat this as a snapshot, not a permanent rule.)
4. Agentic AI — from answering to doing
Until recently, AI mostly answered questions. The big shift now is agentic AI: AI that can take actions and complete multi-step tasks on your behalf. Instead of just drafting an email, an "agent" can read the incoming message, draft the reply, update the customer record and book the follow-up — using your other software to actually get things done. It's genuinely powerful, and it's exactly where guardrails matter most, because you're now letting AI act, not just suggest.
5. Inside your walls vs outside them — the governance question
There are broadly two ways AI shows up in a business, and the difference is huge for your data:
Outside your tenant. A staff member opens a public chatbot — say the free ChatGPT or Claude — and pastes something in to get help. Convenient, but whatever they paste has now left your control, and on consumer plans it may be stored or used to improve the model. That's how confidential client data quietly walks out the door.
Inside your tenant. Microsoft 365 Copilot and Google Gemini run within your own Microsoft or Google environment. They work off your business's own data, respect the security and access rules you already have, keep your information inside your compliance boundary, and — on business plans — don't use your content to train public models. For professional and regulated firms, keeping AI inside your tenant is usually the safer default.
6. The trap: don't just "switch Copilot on"
Here's the part most businesses miss. Copilot and Gemini can see everything the person using them already has access to — no more, no less. The problem is that in most organisations, permissions have grown messy over the years. Staff can often technically reach files they'd never actually go looking for: employee contracts, salaries, board financials or HR records sitting in a forgotten SharePoint folder.
Turn Copilot on for everyone overnight and someone can simply ask — "what does everyone here get paid?" — and it may cheerfully surface documents they never knew they could open. The AI didn't break any rules; it just made existing over-sharing instantly discoverable.
This is why AI readiness is really a data-maturity exercise: first tidy up who can access what, fix the over-sharing, label your sensitive documents, then pilot with a small group — before you roll it out widely. Get the data house in order and Copilot becomes a superpower instead of a liability.
7. How to capitalise on AI — safely
The businesses winning with AI aren't the ones who moved fastest; they're the ones who moved deliberately. In practice that means: start with a real problem worth solving; pick the right tool (ideally one that lives inside your tenant); get your data and permissions in order first; set clear guardrails and train your team; and keep a human checking anything that matters.
That's precisely what our Technology Impact Assessment is for — we help you find where AI genuinely adds value, check each tool and vendor for safety, and set it up so you capture the upside without the exposure.