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Duration: 5 Minutes

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How AI Actually Works

Stop viewing AI as a “human-like actor” and instead view it as a Scriptwriter.

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The Predictive Nature

The AI’s only job is to:
  1. Look at the entire conversation history (the “script”)
  2. Predict the next most likely token
That’s it. There’s no reasoning, no understanding—just pattern prediction based on training data.

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The Context Window

Critical insight: For the AI, the context window is its entire world.
  • If information isn’t in that window, it literally does not exist to the AI
  • No access to previous conversations (unless explicitly provided)
  • No memory of past interactions
  • No awareness of your broader codebase (unless shown)

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What This Means for You

  • You must explicitly provide all relevant context
  • Assume nothing is “obvious” to the AI
  • The quality of output is directly tied to the quality of input
The Scriptwriter needs a good script to work with.