Introduction to Generative AI

Generative Artificial Intelligence (Generative AI) refers to AI systems that can create new content and ideas, including conversations, stories, images, videos, music, and code. Unlike traditional AI that analyzes existing data, generative AI produces original outputs by learning patterns from vast datasets and generating new content that follows similar patterns.

Key Characteristics

• Creative: Produces original content across multiple modalities
• Adaptive: Learns from examples and adjusts to specific requirements
• Scalable: Can generate large volumes of content efficiently
• Interactive: Responds to user inputs and iterates based on feedback

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Popular Cloud-Based Tools

Text Generation

ChatGPT (OpenAI)

• Description: Leading conversational AI model with natural language understanding and generation capabilities
• Strengths: Versatile applications from customer service to content creation, coding assistance, and complex reasoning
• Latest Updates (2025): Enhanced multimodal capabilities supporting text, images, audio, and video
• Best for: General-purpose conversational AI, content creation, coding assistance, and analysis

Claude (Anthropic)

• Description: Advanced AI assistant focusing on helpful, harmless, and honest interactions
• Strengths: Excellent for detailed analysis, writing assistance, and complex reasoning tasks
• Unique Features: Strong emphasis on safety and constitutional AI principles
• Best for: Research, analysis, creative writing, and technical documentation

Gemini (Google)

• Description: Google’s AI assistant with strong integration to Google Search and services
• Strengths: Access to current information, multimodal capabilities, and Google ecosystem integration
• Latest Updates (2025): Expanded AI Mode in Search, Deep Research capabilities, and enhanced learning tools
• Best for: Research, current information retrieval, and Google Workspace integration

DeepSeek

• Description: Cost-efficient AI model that matches leading capabilities at a fraction of development cost (~$6 million vs $100 million)
• Best for: Technical writing, coding, and cost-conscious applications

Jasper

• Description: AI content generation platform tailored for marketers and business teams with “Brand Voice” feature
• Strengths: Marketing-focused templates, brand consistency, enterprise features
• Best for: Marketing content, brand-specific writing, enterprise content at scale

Image Generation

DALL-E 3 (OpenAI)

• Description: Leading text-to-image AI generator integrated with ChatGPT
• Strengths: Now reliably generates text within images, addressing previous limitations
• Best for: Blog graphics, social media content, and detailed image prompts

Midjourney

• Description: Often considered the OG of AI image generation, favored for its painterly aesthetic
• Access: Discord-based interface
• Best for: Artistic images, creative visuals, and source images for video generation

Leonardo AI

• Description: AI art generator offering precise control over image generation
• Strengths: Advanced customization options, style controls
• Best for: Professional design work, detailed artistic control

Adobe Firefly

• Description: AI features integrated into Creative Cloud suite, part of $52.99/month All Apps plan
• Strengths: Professional integration, established workflows
• Best for: Professional graphic design, photo editing workflows

Video Generation

Synthesia

• Description: AI-powered platform for creating videos with AI avatars
• Strengths: Enterprise focus with AWS partnership and ISO/IEC 27001:2022 certification
• Best for: Corporate training, marketing videos, multilingual content

Runway ML

• Description: AI-powered creative media platform with Gen-4 technology for world-consistent video generation
• Funding: Raised $308 million in Series D, reaching over $3 billion valuation
• Best for: Creative video editing, text-to-video generation, professional workflows

Google Veo 2

• Description: Next-generation video synthesis from Google DeepMind
• Best for: High-quality video generation, Google ecosystem integration

Audio Generation

ElevenLabs

• Description: Advanced AI voice generation and cloning platform
• Strengths: High-quality voice synthesis, voice cloning capabilities
• Best for: Voiceovers, audiobooks, multilingual content

Suno

• Description: AI music generation platform that creates songs with lyrics, musical compositions, and vocals from simple prompts
• Pricing: Free plan with 50 daily credits; Pro plan $10/month for 2,500 monthly credits (~500 songs)
• Best for: Music creation, background audio, creative projects

Code Generation

GitHub Copilot

• Description: AI coding assistant providing real-time coding assistance, integrated with version control and CI/CD
• Best for: Software development, code completion, debugging assistance

Cursor

• Description: AI-powered code editor with advanced context awareness
• Best for: Full-stack development, code refactoring, AI-assisted programming

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Local/Self-Hosted AI

Local AI tools offer significant advantages for privacy-conscious users and organizations. Running models on your own hardware avoids recurring API costs and keeps sensitive data within your infrastructure.

Text Generation (Local LLMs)

Ollama

• Description: Open-source tool that downloads, manages, and runs LLMs directly on your computer in isolated environments
• Platforms: macOS, Linux, Windows
• Popular Models: Llama 3 (8B for mid-range, 70B for powerful hardware), Phi-3 (optimized for 8GB RAM), Code Llama for programming
• Interface: Command-line based, can be paired with OpenWebUI for graphical interface
• Best for: Users comfortable with command line, homelab enthusiasts, developers

LM Studio

• Description: Most polished graphical user interface for managing and running local LLMs, accessible for non-technical users
• Strengths: User-friendly GUI, extensive model library, fine-tuning capabilities
• Best for: Users who prefer graphical interfaces over command-line tools

Jan

• Description: Comprehensive ChatGPT alternative that runs completely offline, offering full control and privacy
• Features: Cross-platform support, works across multiple hardware configurations
• Best for: Users looking for a polished, all-in-one solution

GPT4All

• Description: Polished desktop application with minimal setup required
• Platform: Particularly strong on Windows
• Best for: Windows users who prefer traditional desktop applications

Text-Generation-WebUI

• Description: Feature-rich interface with easy installation and flexibility for various model formats
• Strengths: Web interface, comprehensive features, supports multiple model formats
• Best for: Users wanting powerful features with web-based access

LocalAI

• Description: Most versatile platform for developers, offering OpenAI API compatibility
• Features: Supports diverse model types (text, image, audio), Docker support, API compatibility
• Best for: Developers needing flexible, API-compatible local LLM hosting

AnythingLLM

• Description: Open-source AI application with desktop focus, featuring React interface, NodeJS server, and document processing
• Strengths: Document chat, AI agents, local data processing, multi-user Docker support
• Best for: Teams needing document analysis and AI agents while maintaining data privacy

Recommended Local Models

Meta Llama 3 Family

• Llama 3 8B: Works on mid-range machines (16GB RAM), excellent for general tasks
• Llama 3 70B: Requires powerful hardware but delivers near-commercial quality results
• Strengths: Excellent balance of performance and efficiency, strong reasoning capabilities

Microsoft Phi-3

• Description: Lightweight model optimized for lower-end systems (8GB RAM), great for coding and reasoning
• Best for: Resource-constrained environments, quick responses

DeepSeek Coder

• Description: Best balance of speed and autocomplete accuracy, responds in <80ms for VS Code
• Strengths: Programming tasks, code completion, technical documentation
• Best for: Developers needing fast, accurate code assistance

Mistral Models

• Description: European-developed models offering strong performance
• Variants: 7B model requires 8-12GB VRAM
• Best for: Code generation, general text tasks

Local Image Generation

Stable Diffusion (Local Setup)

• Models Available: SD 1.4, 1.5, 2.0, 3.5 (Medium, Large, Turbo), SDXL, SDXL Turbo
• Hardware Requirements: Minimum 6GB VRAM recommended for SDXL, preferably 10GB
• Interface Options: Web UIs like AUTOMATIC1111, ComfyUI, or InvokeAI
• Customization: Extensive community checkpoints available on CivitAI, fine-tuning capabilities

LocalAI Image Generation

• Backend: Diffusers backend supporting Stable Diffusion and other models
• Setup: API-compatible image generation with local models
• Features: Text-to-image, image-to-video, and video generation capabilities

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Hardware Requirements

Text Models

Model Size	VRAM Required	Example Hardware	Use Case
7B	8-12GB	RTX 3080/4070	General tasks, code assistance
13B	16-20GB	RTX 3090/4080	Advanced reasoning
70B	24GB+ (quantized)	RTX 4090	Near-commercial quality

Image Models

Model	VRAM Required	Notes
SDXL	6GB minimum, 10GB+ recommended	High-quality image generation
CPU Fallback	N/A	Models can run on CPU but generate very slowly

Quantization

Larger models can be compressed using quantization techniques like q4_k_m format, allowing 70B models to run on 24GB VRAM with acceptable quality loss.

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Setup and Deployment

Quick Start Options

• Docker Containers: Use pre-built Docker Compose setups like n8n Self-Hosted AI Starter Kit
• One-Click Installs: Tools like Ollama offer simple installation with automatic model downloads
• Cloud VPS: Rent GPU-enabled virtual servers for more powerful models

Integration Frameworks

• n8n + Ollama: Low-code workflows with LangChain integration for complex AI applications
• API Compatibility: Many tools offer OpenAI-compatible APIs for easy integration with existing applications

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Use Cases

Enterprise Applications

• GDPR Compliance: Keep all personal data on-premises for EU regulatory compliance
• Healthcare/Legal: Sensitive data processing without cloud exposure
• Internal RAG Systems: Train on proprietary knowledge bases securely

Development Workflows

• Code Assistance: Eliminate rate_limit_exceeded errors, define your own queue behavior
• Content Creation: Generate text, images, and audio without usage limits
• Prototyping: Rapid iteration without API costs

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Quick Reference

Tool Selection by Use Case

Use Case	Recommended Tool	Alternative
General Conversation	ChatGPT, Claude	Gemini
Code Generation	GitHub Copilot, Cursor	Claude, DeepSeek
Image Creation	DALL-E 3, Midjourney	Leonardo AI
Video Generation	Runway ML, Synthesia	Google Veo 2
Audio/Music	ElevenLabs, Suno	-
Local/Private	Ollama + Llama 3	LM Studio, Jan
Marketing Content	Jasper	ChatGPT
Cost-Effective	DeepSeek	Local models

Cloud vs. Local Decision Guide

Factor	Choose Cloud	Choose Local
Data sensitivity	Low	High
Usage volume	Low-moderate	High
Setup effort	Minimal	Moderate-high
Hardware available	Limited	Good GPU
Internet access	Reliable	Limited/restricted
Customization needs	Standard	Specific