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Generative AI, LLMs and agents

Generative models write, draw and summarise instead of classifying or forecasting, and they form the newest layer of the field rather than a replacement for the rest of it. What follows maps foundation models and the ways they are adapted, from prompting and retrieval to fine-tuning and agents, what the AWS and Microsoft AI exams now test about them, and the checks that decide whether a clever demo becomes a dependable feature.

Why this topic exists: Foundation models, prompting, retrieval, fine-tuning and agents: the newest layer of the field and the one AIF-C01 and Azure AI Fundamentals now test (the AI portal reads the concepts in order).

Generative AI is a label for models that produce content. For practitioners the more useful unit is the foundation model: a large network, usually a transformer, trained once at great expense on broad data and then adapted to many tasks. Large language models are the text-shaped members of that family and the ones most current work involves. The skill in this topic is not training such models, which a handful of laboratories do, but choosing, adapting and constraining them for a particular job.

Four ways to adapt a model, cheapest first

  • Prompting. Instructions, context and worked examples placed in the request itself. Prompt engineering costs nothing to change and is the right first attempt for almost every task.
  • Retrieval. Search your own documents at the moment a question comes in and hand the relevant passages to the model. Retrieval-augmented generation is how a general model answers from your policies rather than from memory, and most of its quality lives in the search step.
  • Fine-tuning. Further training on your own examples to fix a format, a tone or a narrow skill. It changes behaviour more than knowledge, and it needs curated data plus a way to measure improvement.
  • Agents. A loop in which the model calls tools, reads what they return and decides the next step. Agentic AI turns a text generator into something that acts, which raises the price of every error.

The order matters because each step multiplies cost and risk. Teams that reach for fine-tuning to fix a problem better retrieval would have solved spend weeks assembling training data for no gain. The AWS AI Practitioner exam gives applications of foundation models a domain of their own and asks candidates to choose among exactly these options; Azure AI Fundamentals and Oracle's OCI AI Foundations cover the same vocabulary on their platforms. Microsoft's Applied Skills lab for Foundry agents goes a step further and has you deploy a model and build a working agent in a live environment.

Decide who checks the output

Every generative feature needs a named reviewer or an automatic check for the cases where the output is wrong, because it will sometimes be wrong with total fluency. Where no person reads each result, constrain the format, validate it against rules and log enough to reconstruct what the model was shown. Prompt injection, meaning instructions smuggled into the content a model reads, is the security form of the same problem.

What this layer leans on

The generative layer depends on the rest of the silo more than its marketing admits. Retrieval is a data engineering and search problem, evaluation is statistics, and running an application at scale is MLOps. Copyright, personal data and disclosure belong to responsible AI. People arriving from software development tend to do well here because much of the work is systems integration; people arriving from analysis bring the measurement discipline the area most lacks. The AI portal walks through the thirteen underlying concepts in reading order.

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Concepts to know

Glossary entries with the reason each one matters here.

Certifications that test it

Vendor exams and free certificates; facts, cost and the preparation path are on each page, and the certifications hub has them all.

Tools of the trade

  • PyTorch

    Most open models are trained and served with it.

  • ChatGPT

    The product that made LLMs a household word.

Frequently asked

Do I need machine learning to work with LLMs?
Not to build useful applications on hosted models, which is mostly software work. You do need the evaluation instincts machine learning teaches: held-out test cases, suspicion of scores that look too good, and the understanding that performance on your own inputs is the only number that counts.
What is a hallucination?
Output that is fluent and wrong, such as an invented citation or a confident answer to something the source never addressed. It follows from how language models generate text, one plausible continuation at a time. Grounding answers in retrieved documents, asking for sources and checking them reduces it without eliminating it.
When is fine-tuning worth the effort?
When prompting and retrieval have been tried properly and the remaining gap concerns form or a narrow skill: a strict output format, a house style, a specialised classification run at high volume. It is rarely the right way to add facts, which change faster than you can retrain.

Courses in the directory

485 courses are filed here; the top 6 by our ranking, details and the provider link on each course page.

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Last reviewed 26 September 2026 · Getting Digital