AI explained simply

What artificial intelligence is, how it works and what it can concretely do for an SME.

01 / Basics

What is artificial intelligence?

Artificial intelligence (AI) refers to computer systems that solve tasks that used to require human thinking: understanding language, writing texts, recognising patterns or preparing decisions.

Unlike traditional software, modern AI does not only follow fixed, programmed rules. It learns from large numbers of examples and can apply this knowledge to new situations. Best known today are language models such as ChatGPT, which answer in natural language.

For an SME this means: many tasks involving texts, documents and information can be done much faster with AI – provided the solution is well tailored to your company.

02 / Terms

The most important terms in brief

Artificial intelligence (AI)

Umbrella term for systems that emulate human-like abilities such as understanding, learning and problem solving.

Machine learning

An approach in which a system learns from data instead of having every rule programmed by hand.

Language model (LLM)

A “large language model” has been trained on huge amounts of text and can understand, summarise and generate text.

Prompt

The instruction or question you give the AI. The clearer the prompt, the better the result.

RAG

“Retrieval augmented generation”: the AI first searches your own documents and answers on that basis – with sources.

Local vs. cloud model

A local model runs on your own hardware, a cloud model at an external provider via the internet.

03 / How it works

How a language model works

  1. 01

    Training

    The model learns from very large amounts of text how language is structured and how knowledge is connected.

  2. 02

    Your question

    You describe a task in plain language – for example “Summarise this contract”.

  3. 03

    Your company knowledge

    If needed, relevant passages from your own documents are added (RAG).

  4. 04

    The answer

    The model formulates, word by word, the most likely fitting answer to your question.

04 / Benefits for SMEs

What AI can do for your company

AI does not replace experts, but it takes time-consuming routine work off their hands – leaving more time for what really matters.

Save time

Routine tasks such as summarising, sorting or taking minutes are done in seconds.

Make knowledge available

Knowledge from manuals, quotes and projects is available with a simple question – even when experts are away.

Improve quality

Consistent texts, fewer typos and complete information thanks to AI-assisted checks.

Serve customers better

Faster answers to enquiries, even outside office hours.

Prepare decisions

Large amounts of data and documents are condensed and presented clearly.

Relieve skilled staff

Employees focus on demanding tasks instead of busywork.

05 / Limits & responsibility

What you should know

AI is a powerful tool – when used correctly. We pay attention to these points in every project.

To the AI overview

AI can be wrong

Language models can give convincing but incorrect answers (“hallucinations”). Important results should be checked.

Mind data protection

Confidential data does not belong in public AI services without control. Local models or vetted cloud offerings provide security.

Humans decide

AI supports and prepares – responsibility for decisions remains with you and your employees.

Good data, good results

The quality of the answers depends heavily on the quality and currency of your data.

How can we help you?

Tell us about your project – we will find the right solution.

Get in touch