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This skill explores the evolution of AI through three software eras: Software 1.0, where humans wrote explicit rules; Software 2.0, where systems learned from data; and Software 3.0, where AI generates content through prompts. It emphasizes the importance of understanding AI's learning processes to manage compliance, privacy, and copyright issues effectively. The course also introduces prompt engineering as a method for ensuring safe and compliant AI outputs, highlighting the shift from coding to guiding AI with natural language prompts.

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48m

Skill 1 of 4 in AI compliance

Introduction

In this first video, we'll explore how AI evolved and why that matters for compliance. We'll look at three eras of software. Software 1.0, where humans wrote the rules. Software 2.0, where systems learned from data. And Software 3.0, where AI generates new content using language. By the end, you'll see that understanding how AI learns is the first step to managing privacy, bias, and copyright responsibly.


What is AI?

In this video, we'll go beyond chatbots like ChatGPT, Gemini, and Copilot to illuminate what AI really means. AI is simply software that learns from data instead of following fixed rules. Machine learning finds patterns, Deep learning handles complex signals like speech or images, and generative AI creates new text or media from prompts. The important part is that AI doesn't actually know, it predicts. So if the data it learns from includes biased or private information, those issues can show up in its output. That's why compliance starts with understanding how AI learns, not just what it produces.

Knowledge Check

What is the primary function of deep learning within AI technologies?

Software 1.0 | "The Rules Era"

Software 1.0 was the age of certainty. Every rule was written by humans, step by step. Computers didn't think, they followed instructions. That made systems predictable and easy to audit, but also somewhat rigid. If you missed a detail or built bias into the rule, it repeated that bias perfectly, every single time.

Knowledge Check

In the context of software evolution, what is a key characteristic of Software 1.0?

Software 2.0 | "The Learning Era"

Software 2.0 changed everything. Instead of writing every rule, we let data teach the rules. Systems started learning from examples, and with that, they started inheriting the strengths and weaknesses of our data. For HR, Legal, and IT, this era introduced the first real compliance challenge, protecting the quality, fairness, and privacy of the data itself.

Knowledge Check

What is a key distinction between Software 1.0 and Software 2.0?

Software 3.0 | "The Generative Era"

Today, we've entered Software 3.0, the era of language. We no longer code or train directly with Software 3.0. Instead, we guide powerful, pre-trained models through prompts. Tools like Gemini, Copilot, and ChatGPT can summarize, draft, or analyze, but here's the shift. We control the outcomes with words, not code. That makes communication itself a new compliance risk. Safe prompting, clear scope, and data anonymization before using AI are now essential. In short, we're learning to program using plain language.

Knowledge Check

In the era of Software 3.0, what is the primary method of interacting with AI models?

Challenge 🎉

Congrats on making it to the end of the skill and to the challenge! Your task is to answer the questions below. If you have any knowledge gaps, review the videos before moving forward. This is critical. This course is short and builds iteratively on each concept step by step. Once you have a firm grasp of these concepts, you'll be prepared for the next skill on Prompt Engineering.

Knowledge Check

Which of the following statements about AI and its subsets are true? (select three)

Knowledge Check

Which of the following statements accurately describe the characteristics and responsibilities associated with different software eras? (select three)

Knowledge Check

Which of the following statements about Software 2.0 and machine learning are true? (select three)


Knowledge Check

Which of the following are important considerations when using AI models like ChatGPT, Gemini, or Copilot in an organization? (select three)

View Transcript

Introduction

0:00Hello and welcome to the first skill in the AI Compliance Privacy and Copyright for HR,

0:07Legal, and IT course. Before we talk about policies, privacy rules, or copyright,

0:12we need to understand what AI actually is and how it evolved. And we'll do that in this course,

0:19which is part of a series of AI mini courses. And we are here. But it is worth mentioning

0:25that technical teams can take a very similar course here in AI Compliance Privacy and Copyright

0:33for developers. And most of these mini courses include a micro crash course on prompt engineering.

0:40And this is the mini course on prompt engineering that I highly recommend that you take if you want

0:46to learn more about prompt engineering. Here we go into much more detail on prompt engineering,

0:51but it's still a mini course, which means that it's not a full course.

0:56And if you do want a full course, please let us know in the comments, because this is precisely

1:00the data that we need to hear in order to make the content that you are most interested in.

1:06And for those of you who are interested in programming, but don't have a programming

1:10background, AI vibe coding and security is a great place to start. Essentially,

1:15it's like prompt engineering, but for non programmers who want to leverage AI for

1:21programming with a special emphasis on security, because if you can't read the code, you might want

1:26to be careful. And there are steps that we can take to mitigate the dangers when vibe coding,

1:33which is incredibly fun. And if you do have a programming background, then I would suggest the

1:38AI genetic coding course. And finally, if you're building an application from scratch or you're

1:43part of a leadership team, then I would suggest the artificial intelligence for executives and

1:49leaders course. And finally, these two are AI productivity courses. The first one down here,

1:55AI productivity for professionals is a platform agnostic approach to AI productivity. But really,

2:02we're going to lean very heavily on Google in this course, because there's really just two choices

2:07when you're talking about these large platforms that have self-contained ecosystems of applications.

2:13There's Google that uses Gemini and then Workspace. And then you have this one, AI Essentials with

2:20Microsoft Copilot, meaning we're going to use the Microsoft ecosystem with Copilot and Microsoft

2:28365. So you can choose A or B. And the only other choice is to use different AI chatbots and connect

2:38different parts of these ecosystems into them. That is not a best practice for many reasons,

2:44particularly when we're talking about AI compliance, privacy and security, which you're

2:49going to learn about in this course. And on that note, what's included in this course? So what is

2:54in scope? We'll identify the difference between main types of AI, because it's not just one thing.

3:01There are many different things and have a really cool way to break this down in a non-technical way

3:08because it can get very complicated very fast. And if we think of it in basic terms, then you can

3:13build a mental model that you'll not only use for the rest of this course, but also outside of work

3:20as AI becomes more and more ubiquitous in the workplace. We'll also understand basic non-technical,

3:26that's the most important part, AI compliance, privacy and copyright. This is the non-technical

3:33course for HR, legal and non-technical IT teams. We'll also leverage AI tools using prompt

3:40engineering for basic governance. But it's also important to mention, this is not a full course

3:46on AI governance because that is a much more in-depth course. That would not be a mini course,

3:52that would be a full course. But what we're doing here is a mini course, sort of like a crash course

3:57on the most important parts of AI governance distilled into the key topics of compliance,

4:04privacy and security. And don't worry because we're not going to learn how to code. This is a

4:09non-technical course and no tutorials on how to build AI chatbots or AI agents, which is a lot of

4:15fun, but we're not doing that in this course. But first a little bit about me. My name is Jonathan

4:21Barrios and I'm excited that you're here because I love to teach data science, machine learning and

4:27deep learning. And in this course, that really means AI, but really what I call myself is an AI

4:34data scientist. It's a combination of data science and AI engineering, which includes

4:40deep understanding of both machine learning and deep learning. What you're going to learn about

4:45in this course. I've worked with many different types of AI built SAS applications, AI applications

4:52and worked on streaming platforms. And more importantly, I've been teaching for quite some

4:57time at top platforms like Treehouse, Thinkful and Chegg. And now I'm happy to be part of the

5:02CBT Nuggets team. So where can you find me? You can definitely find me on LinkedIn at Jonathan

5:08dash Barrios dash AI or on my blog website at Jonathan Barrios dot com. And you can also find

5:16me here on X at AI underscore data underscore science. And again, that's what I call myself.

5:23That's the field that I'm in because it's an emerging field and it's also my X handle. So a

5:28quick note about X. Some people love it. Some people hate it. But to be quite honest, I don't

5:34really engage in social media because I think it's a waste of time. So you might be wondering,

5:40why are you telling me to follow you on X? And here's why. The only reason I'm there is to keep

5:46up with all of the developments in the AI community. And the AI community is mostly on X.

5:53It's incredible. For example, top minds like Andrej Karpathy are continuously posting amazing

5:59things directly on X. And it's really the simplest way to get information about the AI community.

6:06Plus, you can use a built in AI grok, which is part of X AI, which is integrated into X.

6:13And that's all I do. I only follow people who talk about AI and I do not follow anybody else.

6:19That way, my feed is really amazing. It's kind of a superpower, really. So follow people like me

6:26and others that talk about AI and you'll be in a great spot. And otherwise, I highly recommend

6:32not using social media. It's not great. And instead, use that time to learn.

6:38All right. Now, here is the first skill. We're going to identify the main types of AI,

6:44because like I said, AI is not one thing. And before we talk about policies, privacy rules,

6:51or copyright, we really need to understand what AI actually is and how it evolved.

6:57The truth is, AI didn't appear recently after some new breakthrough. It's the result of decades

7:04of change in how computers learn. And instead of a technical explanation about the various types of

7:10AI, I have a very simple way to approach this. And I like to call it the path of least resistance,

7:17meaning it's the easiest way to achieve a goal. And I'm borrowing this term from physics. And

7:23while this can mean a lot of different things, it just means we're building a mental model to

7:28understand AI so that we can leverage it to better understand AI governance. And that's it.

7:34And the way that I've chosen to do this is by breaking down AI into its simplest components,

7:40meaning we'll look at the evolution through the lens of three types of software. Software 1.0,

7:47which is traditional programming. Software 2.0, where the software learns from data on its own.

7:53And software 3.0, which is the generative era. And this is what we know as chat GPT. And that's

8:01what I mean that AI is not one thing. A lot of people think it's just chat GPT, but that's just

8:07one slice of the pie. And by the end of this skill, you'll see exactly how this evolution

8:12affects today's bigger compliance questions from protecting employee data to managing bias in

8:19hiring or ensuring copyright safe content generation. So in this first skill, we're

8:26really laying the groundwork for everything that follows. We'll explore what AI really means,

8:33not from a coding standpoint, but from a business and compliance perspective, you'll learn to spot

8:39whether an AI tool your team uses is rule-based, software 1.0, data-driven, software 2.0,

8:47or generative like chat GPT, which is software 3.0. And this is a much simpler way to understand AI.

8:55And each type is associated with very different risks and responsibility. For example, when we're

9:01talking about HR, systems using data-driven AI may accidentally learn hiring bias. Legal teams

9:09using generative AI tools may face copyright or confidentiality issues. And when considering IT,

9:17these departments deploying AI chatbots may expose private information if prompts aren't handled

9:24carefully. Once you recognize the type of AI behind the tool, you'll know what kind of safeguards or

9:30policies that it needs. So that means we're going to define what AI is in plain language, explore

9:38software 1.0, 2.0, and 3.0, and understand traditional learning and generative systems.

9:45Then we'll connect it to HR, legal, and IT examples. And finally, we'll identify early

9:51compliance and privacy challenges. We'll do all of this to bridge to the next skill,

9:57on-prompt engineering. That's where we're going to apply prompting for safe and compliant outputs.

10:04Meaning, when you understand how AI learns, you can better manage how it behaves.

What is AI?

0:00When people hear AI, they often think of tools like ChatGPT or Copilot or other models or systems

0:08that can write or summarize text, which is also known as generative AI or Gen AI for short.

0:15But like I said earlier, AI is much broader. At its core, AI is simply software that learns

0:22from experience. Instead of following strict rules, it identifies patterns in data and uses

0:28them to make predictions or generate ideas. Even when it's generating something like text in ChatGPT

0:36or Copilot, it's predicting the next word. And this is how it generates those ideas.

0:42So let's break it down into three easy categories and also demystify what artificial intelligence is.

0:49You can really think of it as an umbrella term, which could be many things like rules,

0:54search, machine learning, deep learning, and generative AI. But we're really going to focus

1:00on the core technologies that represents AI, and that would be machine learning, which finds

1:06patterns in the data. For example, HR systems might predict which candidates could be a good

1:12fit based on past hires. And then a subset of machine learning is deep learning. Here we use

1:20layered models to understand complex data like images or speech. In short, we're using software

1:28modeled after the brain. So deep learning uses something called neural networks, which are

1:33artificial neurons that mimic human neurons. We have neurons in our brains that are connected,

1:39which means our brains are made up of neural networks. And that's how we think, talk,

1:46store memories, and so on. And that's what makes deep learning so fascinating. You can think of

1:51machine learning as algorithms and deep learning as these neural networks. For example, in IT,

1:59you could have security tools that recognize phishing emails or facial authentication

2:05on devices. We'll explore each one of these in more detail soon. And a subset of deep learning

2:11is generative AI. Here, gen AI creates new text, images, or even code based on prompts. An example

2:20would be legal teams using AI to summarize contracts or draft policy templates. The takeaway

2:27here is that gen AI is just one slice. It's not the whole pizza. And what we're doing is simplifying

2:34this because we don't need to know all of the learning styles like supervised, self-supervised,

2:40unsupervised, reinforcement learning. These are all really interesting aspects of AI, but we don't

2:46really need to know that. And when we're thinking about modalities, we can use this simple mental

2:51model to see how it's used with vision, speech, and text. NLP is just the technology, natural

2:58language processing that we use for text and also recommendation. For example, when you're watching

3:04a YouTube video at the very end, it gives you recommendations and even robotics. Here's the key

3:09concept. AI doesn't know anything. What's most likely based on its training data. If the data

3:16includes bias, private information, or copyrighted content, the AI may reproduce those in its output.

3:24And that's why compliance isn't just about setting rules. It's about understanding how the tool

3:30learns and how to use it responsibly. And when we look at AI use cases in everyday life, you can

3:38see it in your phones when you use it as a way to authenticate who you are so that it opens up your

3:44phone. That's facial recognition and that is deep learning. So it's classifying you specifically,

3:51but it can also be used for other applications, identifying individuals in a crowd, and so on.

3:57Computer vision also uses deep learning and here it's classifying a person, a car, a tree, a sign,

4:05and so forth. And this is how computer vision allows cars to drive themselves in the city streets.

4:12And when you're thinking about robotics, well, that's also deep learning because it uses

4:17computer vision to see. But how about if it speaks? It could be a combination of deep learning plus

4:24gen AI. How about these little motors that are in the joints? Maybe those use machine learning.

4:29The takeaway here is that all of these can combine. It doesn't mean that one AI type is for one thing.

4:37When you're thinking about fraud detection, machine learning is an algorithmic approach

4:42to identifying outliers, such as very large transactions in a completely different country.

4:49And that's used for fraud detection. And when you think about intelligent document processing,

4:54IDP, you can take a picture of a document and convert that to text. That would be deep learning.

5:00But when you use that document to generate new text, well, that would be gen AI. And again,

5:06we're combining these technologies to create different products. You could use deep learning

5:12by itself, machine learning by itself, or generative AI by itself, or you can combine them.

5:18And here is where we build our mental model. A much simpler way of thinking about AI and all of

5:25the technologies contained in that umbrella term, such as machine learning, deep learning, and

5:30generative AI, is to really think of it as three types of software that evolved pretty quickly.

5:37Software 1.0 is traditional programming. If you've heard about coding or programming,

5:44that's software 1.0. Software 2.0 is where machine learning and deep learning come in,

5:50because those models learn from data. We're not using rules to program them. And then finally,

5:563.0 is generative AI. These are models that generate something new from its training data.

6:03And using this mental model allows us to think more clearly about AI compliance, privacy,

6:09and security, instead of being bombarded with all of these technical terms that can be complex.

6:16While they are interesting to learn about, I think it really doesn't help to get too deep

6:22into those technologies, unless you want to build the models yourself. If you are somebody in HR,

6:28or a legal team, or you're on a non-technical IT team, it's much better to think of it in terms

6:34of software, how they behave, so that you understand how you can apply compliance,

6:41privacy, and security to your organization for your department or team. And in the next video,

6:47we'll begin by discussing software 1.0, how rules are created by hand, meaning code creates behavior.

6:55See you there.

Software 1.0 | "The Rules Era"

0:00Welcome back. In this video, we're going to explore software 1.0, 2.0, and 3.0. We already

0:07know what artificial intelligence is, more or less an umbrella term for machine learning,

0:12deep learning, and generative AI. We know how they're implemented in everyday use cases,

0:17such as computer vision, robotics, and facial recognition. And to manage AI well, it helps to

0:24see how software has evolved, because every new era changed what humans are responsible for.

0:32And that's why we're doing this comparison. When you consider software 1.0, these are the

0:37rules that we wrote, meaning we wrote rules by hand. And by hand, I mean code. So programming

0:44that creates some kind of behavior. You can think of early HR systems that only followed exact

0:50filters that you created. For example, when looking at potential candidates, you might look

0:55at years of experience, and you might set a criteria that you want that to be greater or

1:00equal to three years. In this case, the privacy risk was low because nothing was learned or stored

1:06beyond what you entered. If you use this explicit rule, greater than or equal to three, it's not

1:12going to change magically, unless there's an error in the code. But once it starts to work, you'll be

1:17able to rely on that check for the years of experience. And that's why the risk was low.

1:23And when we look at software 2.0, things are a little bit different, because now systems began

1:30learning patterns from examples. For instance, analyzing past hires to predict future performance.

1:37And so you might imagine, what's the challenge here? If your data has any bias, your system is

1:42going to learn that bias. And this is an important key point. Responsibility shifted from writing the

1:48code to curating clean and fair data. So here, the code in software 1.0 is really responsible for the

1:57behavior. But here in software 2.0, we are training the model, also known as fine tuning, that creates

2:04the behavior. But really, this is data quality. If there's bias in that data, well, then your system

2:12is going to learn that bias. So the responsibility is to make sure that that data is clean and fair

2:18to begin with. And when we look at software 3.0, these are rules that are created using prompts.

2:24You can use tools like ChatGPT to summarize this confidential report or draft a job description.

2:31This might save time, but it also raises new questions. Could private data leak through

2:38prompts? And that's a great question we're going to explore in this course. Who owns the AI-generated

2:44output? How do we ensure the response is accurate and compliant? So what we're doing when we're

2:50entering prompts, we're steering the model to create the behavior. And when I think of prompts,

2:55I really think of programming in plain language. Instead of using programming for software 1.0

3:03or using data for software 2.0, we're using plain language to steer that model to create that

3:11output. It's like creating a program using plain language. And this is the framing from Andrej

3:17Karpathy, who also said English is the hottest new programming language. And again, we're talking

3:23about software 3.0. These are the chatbots like ChatGPT, Copilot, Gemini, Grok, and others. And

3:33while each stage brought huge productivity gains, they also shifted the meaning of responsible use.

3:40And that's why we have this course, because it is counterintuitive where the responsibility lies,

3:46mostly because we don't understand how these models are trained. And that's what we're going

3:51to explore in this skill. We're going to use this hamburger and this hot dog as examples to train a

3:58model. We're not going to write any code. It's going to be fun. And it's easy to understand how

4:03we're training a software 2.0 model. And if our data, which are images of the hamburger or the

4:10hot dog have bias, then the model is going to have bias. For example, if I use 100 images of hamburger

4:18and one of hot dog, guess what? It's going to favor hamburger. And that's pretty easy to

4:23understand. And it's also a lot of fun, like I said. And this is going to give you the insight

4:28that you need when you're thinking about compliance, privacy and security. You can simply think to

4:33yourself, well, is this a program? Is this traditional software programming where we

4:38enter some data? The rules won't change until we change the code. And in that case, well,

4:43the responsibility lies with the person that is doing the programming. And when we think of

4:48software 2.0, when we're using these different labeled images where the model learns from the

4:54data, the responsibility shifts to the person creating the data for the training. And to make

5:01it simpler, we can just say the person that is gathering the data and training the model is the

5:07person responsible for the fairness and the behavior of the output of that model. And when

5:13we get to software 3.0, well, that's going to be prompts. So the responsibility shifts to the person

5:20working with prompts. And that is precisely why we're going to get into prompt engineering in the

5:24next skill, because that is how you can make your outputs compliant and mitigate any privacy leaks

5:31or data leaks or security vulnerabilities. Now let's take a look at an example of software 1.0.

5:39We can say that this is pre AI, meaning computers didn't learn anything. They just followed the

5:45exact instructions written by humans. So the humans write these rules by hand, meaning they

5:52create the code. And that's what creates the behavior. Every decision had to be hard coded.

5:58If this, then that. So let's take a look at what this looks like in Google Colab. The reason that

6:04we're using this is again, you're not going to learn how to code, but this is probably the easiest

6:09way to get started with any programming example without having to do any setup. And all you need

6:16is a Gmail account. That way I can just type some code in here and then run it and you can see how

6:22it behaves. So for this short Google Colab example, we'll build a simple HR rule-based system, the

6:30kind of logic early recruiting software might have used to screen applicants. Here's how that works.

6:36So first I'm going to define some kind of criteria. So applicant years equals four, and we can easily

6:43change this number. So for right now, I'm going to click on this play button, which runs the code,

6:48and it's not going to do anything. It's just going to save the number four so that we know

6:52what the applicant years are. So in this case, the applicant years are four. Now we can do some sort

6:58of hard coded rule. If applicant years is greater than or equal to three, then I want you to print

7:07this statement. And here we can say something like candidate meets experience requirement,

7:13but we need to also handle if that is not the case. So we can use something like this else print

7:19this. And here we're going to say candidate rejected, not enough experience. All right. So

7:25let's run this code. Okay. Candidate meets experience requirement. Perfect. What happens

7:31if I run this again? I get the same exact output. If I do it again, the same and again. So it is

7:37deterministic. So here's what's happening. The system checks the applicant years of experience

7:43up here, which is four. And it does that here. If the applicant years are greater than three,

7:49print this statement. If not, then print the statement. If X, then Y there's no flexibility,

7:56no learning and no hidden logic, which is good and bad. So to recap software 1.0, everything is

8:04deterministic, meaning it's going to be the same predictable output every time. Once you have this

8:10logic set in place, unless something happens to this code or it's changed, then it's always going

8:16to be predictable in the same. That makes auditing and compliance much easier because you can trace

8:22every outcome to some kind of rule. And here's the rule print this else print this pretty clear.

8:29If the rule was biased, like filtering out applicants without a degree, every result

8:35would reflect that bias. If the laws changed or the job criteria evolved, the software wouldn't

8:42adapt until a human rewrote the code. So while software 1.0 carried low privacy risk, it offered

8:50no adaptability. Everything depended on human logic. The next video, we'll take a look at

8:56software 2.0 and get the hamburger and hot dog into this classifier so that you can understand

9:04how we train these models and how easy it is to introduce bias when you don't have quality data.

9:12See you there.

Software 2.0 | "The Learning Era"

0:00Welcome back.

0:01Now that we've seen how software 1.0 followed explicit rules, let's move on to software

0:072.0.

0:08Here, the world of machine learning and deep learning.

0:13Sometimes when you hear machine learning, deep learning is the subset of machine learning,

0:17but they are sometimes also used interchangeably.

0:20But the easiest way to think about this is algorithms, some kind of sequence of steps.

0:26And in here we're using neural networks.

0:29But to keep it super simple, you can just say that all of this is machine learning.

0:33It's not super important to know the distinction between machine learning, which generally

0:38uses algorithms and deep learning, which specifically uses neural networks.

0:43But it is super interesting because chat GPT does seem to work like a human in some cases.

0:49And that comes from deep learning and the artificial neural networks, which is really

0:54software modeled after the brain or software modeled after us.

0:58So software 2.0 really is the world of machine learning, which includes deep learning.

1:04That means that we stopped hard coding logic that was software 1.0.

1:10And instead we show examples and the systems can learn its own rules from the data.

1:16And to bring this to life, we're going to use something called Teachable Machine, which

1:21is an educational application by Google.

1:24And we are going to step away from the H.R.I.T. and legal examples and take a look at the

1:30hot dog and the hamburger as training data.

1:33And in doing so, you'll have a firm understanding of how software 2.0 works.

1:39We show it these examples and then it learns to make predictions.

1:42And then we can talk about bias very easily and hallucinations, meaning when the model

1:48just starts to make stuff up.

1:50And that has to do with the examples that we're showing them.

1:54This is very important.

1:55And that's why we're going to do this example.

1:57And as I promised, it's going to be fun.

1:59All right.

2:00So here we are at Teachable Machine.

2:02It says here, train a computer to recognize your own images, sounds and poses.

2:07A fast and easy way to create machine learning models for your site, apps and more.

2:13No expertise or coding required.

2:15So let's click on get started.

2:17And here we have a choice.

2:18We can do image project, audio project or pose project.

2:22In essence, these are all the same thing.

2:25Computer vision.

2:26Here we're giving it images.

2:27So that's pretty straightforward.

2:29Here we're turning the audio or sound into a visual representation of sound.

2:35So again, images.

2:36And then finally poses.

2:38These are just sequences of images, lots of images.

2:41It takes all the images from your webcam and stitches them together to create the training

2:46data.

2:47So much larger project.

2:49So let's start here with the image project and we're going to use standard image model

2:52here.

2:53And now we have two classes, some kind of a training.

2:56And then here we preview, meaning this is where we test the prediction accuracy of the

3:01model.

3:02So I'm going to go over here and click hot dog.

3:05That's our first class.

3:06And then here, hamburger for the second class.

3:09And the way that this works is pretty straightforward.

3:11You click on the webcam and then click on crop here.

3:14And then let's move this into an area where I am not.

3:16I can move out of the way a little bit and then that way I can grab a hot dog.

3:21And there we go.

3:22There's the happiest hot dog on the Internet.

3:24So we can just hold this down and we want to get, let's say, about 100 samples.

3:29OK, we have 103 and to delete them, I'm just going to hit the trash can by hovering these

3:33images.

3:34And now we have 100 samples of hot dog.

3:36Let's do the same thing for hamburger.

3:38OK, I'm going to crop this, get out of the way, and now we can use the hamburger.

3:43So what would happen if we just did very few of these, like three?

3:48I don't know.

3:49Let's try it out.

3:50So now we're going to train the model.

3:51And this is the part where it learns from the data.

3:54It's looking at all the different patterns.

3:56So now it's ready for predictions.

3:57I'm going to click on crop again, move this out of the way so that I'm not confusing the

4:01model.

4:02And now we can hold up a hot dog and it gets that right.

4:06How about hamburger?

4:07It's a little bit confused, especially if you do something like this.

4:09Oh, it thinks it's a hot dog.

4:11Oh, that's definitely a hamburger.

4:13Now it's a hot dog, right?

4:15It's a little bit confused.

4:16And that's how we introduce bias, because we only have three samples here.

4:19So let's go back to the webcam and let's do this.

4:22Let's add some more images to fix that.

4:25OK, 101.

4:26Let me take away one of these.

4:28Perfect.

4:29But if I go over here and I try to make a prediction, it's still a little confused because

4:34we need to train the model again.

4:35All right.

4:36It's done training and now we can test it out.

4:39Hamburger 100 percent.

4:40No problem this time.

4:42And if I take it away, it thinks that the background is a hamburger.

4:45And if I get into the picture, it thinks I'm a hamburger, which I'm not.

4:48So let's click on add a class and now let's add background or we can say waiting or let's

4:54say background.

4:55And all I have to do here is crop, get out of the way and hold this down for 100 images.

5:01I can delete one of these.

5:03And if I go back into the sample, it thinks I'm a hamburger still.

5:06So I need to train again.

5:08And now we have three classes.

5:10This is pretty common because you don't want to classify the background is either a hot

5:15dog or a hamburger.

5:16But this is a way to show you how this works.

5:19Not saying background.

5:20But the minute I do this hamburger and then the minute that I do this, we now have hot

5:25dog.

5:26And if I bring a phone into the picture, it has no idea what's going on because this is

5:30not fair.

5:31It's like I don't even know what this is.

5:32This is a phone.

5:34Same thing with coffee mug.

5:36It's really confused.

5:37And all that means is that we haven't given it the training data on different samples.

5:42We only have hot dog and hamburger and now background.

5:46Because if I move out of the way, it's background.

5:49If I get into the picture, I'm a hamburger.

5:51Well, not really.

5:52And that's exactly how chat GPT in these 3.0 software models can make mistakes.

5:59They're built using software 2.0 through this process.

6:02But instead of images, we're giving them large amounts of text.

6:06So imagine we're giving it a lot of text in English, but then no other language.

6:12So these chatbots would be biased towards English.

6:15And that's why fairness is such a huge component for software 3.0 and software 2.0.

6:22Because training the model means selecting the right data and making sure that the corpus

6:29or the body of text that you're feeding into these language models is representative.

6:35All languages, all kinds of knowledge.

6:38And as you can imagine, that can be pretty difficult.

6:40All right.

6:41So let's break this down.

6:42In software 2.0, we taught a tiny classifier, meaning it was doing two classes, hamburger

6:49and hot dog.

6:50The background was just a placeholder for the educational example.

6:55But software 2.0 doesn't mean that it has to be just two.

6:58It could be many different classes.

6:59It could be 10 types of food or 100 types of food.

7:02So the main distinction between software 1.0, which are rules that are hand coded through

7:07a programming language, here we're using rules that are in weights.

7:11So weights just means how important are the different features.

7:16For example, when you look at a picture of a hot dog, it's looking at all of these lines.

7:21So it has the mustard and ketchup here, the two little eyes, the smile.

7:26These are all features.

7:27And it's asking itself, what are the most important features in this hot dog?

7:31Even when we move it upside down and all around.

7:34And the same thing goes with hamburger.

7:36Here we're looking at all of these different patterns and shapes.

7:40And it's saying what's important in order to identify each class, hot dog and hamburger.

7:47And it's not important that you understand weights so much, but you do now understand

7:51training because we did that.

7:52We fed it all the images and then it trained.

7:55And that means it collected patterns.

7:58And as you can imagine, certain patterns are going to be more important than others.

8:02So the importance are weights.

8:05So how important is a shape like this when you're trying to identify a hot dog?

8:09Very important.

8:10How about a shape like this?

8:12Not so important because we don't see that shape inside of a hot dog.

8:15How important is this shape in a hot dog?

8:18Not so important because we didn't really see that.

8:20So this one is going to get a higher weight and this is going to get a lower weight.

8:24And that's how that works.

8:25So instead of hard coding weights, the model learns patterns through training.

8:31Fine-tuning is just a specialized version of training where you train on a specific

8:35set of images.

8:36But you can really just consider both of these as training on examples that we give it.

8:42And it identifies patterns and it creates rules by assigning different weights to different

8:47patterns.

8:48And that's how it works.

8:49And we use Teachable Machine to see that just now using that image project.

8:53So instead of 20 to 50 samples, we gave it 100 samples each.

8:57But when they were imbalanced, we started to introduce bias.

9:01So just remember software 2.0 learns from examples or you can say it learns from data.

9:08And every time you train the model, it's going to change the weights depending on the examples

9:13that you give it to learn.

9:15The idea here is not to have a deep understanding of how this technology works because we really

9:20didn't go into all of the details.

9:23We're just talking about this at a high level, which is super important for prompt engineering

9:28in the next skill.

9:29This is what we're doing.

9:31We're setting us up for success in prompt engineering and we can create compliant, private

9:37and secure outputs through prompt engineering because we understand that the software that

9:44we're using, software 3.0 was created using these rules.

9:49It learns from data.

9:51And that serves as a foundation for prompt engineering.

9:54It will really start to click when we get into that next skill.

9:57And on that note, let's talk about software 3.0 in the next video.

10:02See you there.

Software 3.0 | "The Generative Era"

0:00In software 1.0, we wrote the rules.

0:02In software 2.0, data taught the rules.

0:06And now in software 3.0, we don't write or train directly.

0:11We simply guide the AI with language.

0:14And that's why I like to call this plain language programming.

0:18You don't need a programming background,

0:21but you do need to know some basic prompt engineering.

0:24And if you're asking what is prompt engineering,

0:27it's plain language programming.

0:29What does that mean?

0:30We're guiding the model or the chatbot using plain language, meaning prompts.

0:37So prompts are plain language programming.

0:40And this is really important when it comes to compliance,

0:44privacy and copyright for non-technical teams.

0:48We can call this a form of AI governance,

0:50meaning you can use prompt engineering for safe,

0:54private and copyright friendly outputs for non-technical teams.

0:59And the umbrella term here is AI governance, which includes all of that.

1:03And software 3.0 is also called or referred to as generative AI

1:09because it generates outputs based on our prompts.

1:12So tools like ChatGPT, Gemini, Microsoft Copilot, Grok, Claude from Anthropic,

1:19they can write summaries, draft documents or even answer questions.

1:23But instead of coding or feeding them structured data,

1:27we communicate in natural language by prompting them.

1:31Let's see what this looks like in action with a special attention to AI governance.

1:35Let's say that we have some text here.

1:37And this is an employee feedback file that I asked the model to generate.

1:42And it did so begrudgingly because there's a lot of sensitive information here.

1:46But it also is a little funny because it's kind of pretty negative.

1:50I didn't ask it to be negative, but this is what we got from the model.

1:53And again, that has to do with its training data.

1:55So let's put this in quotes like this.

1:58And I'm going to say that this is an excerpt.

2:00And I'm going to go up here and just say summarize this

2:03and include names and performance comments.

2:07Let's see what we get.

2:08And by the way, I'm at GPT.com and I'm using my personal account here just to make a point.

2:14Normally, when you're working with an organization,

2:17you're going to be using the organization account,

2:20meaning it's either going to be Google Workspace that uses Gemini

2:24or Microsoft that uses Copilot.

2:27Very rarely do you use chat GPT and drop documents in there for an organization

2:32because compliance in that regard is very difficult to do.

2:36Once you have Google Gemini or Microsoft Copilot set up by your organization,

2:42they handle the compliance behind the scenes.

2:44The administrator is doing that,

2:46which means that you don't have to do that manually.

2:48It should be taken care of for you.

2:51But when you're using chat GPT like I am here and you're dropping in information like this,

2:56which is not real information, so we're OK, it's safe.

3:00This is a security issue and a privacy issue and a compliance nightmare.

3:04You definitely don't want to do this.

3:06And you can click on this button and connect to Google Drive or Microsoft products.

3:11But again, you don't want to use these connectors

3:13because how can you ensure compliance, privacy and security?

3:19It's really hard to do that.

3:20So let's run this and see what we get.

3:22OK, so we have a name, we have bonuses,

3:25and then we have a project name here, which might be intellectual property.

3:29And then we have all of these comments that are associated to this person.

3:34And when you combine this project name, this person,

3:38these negative comments in this amount, these can be pieced together.

3:42And while it might be difficult to do that and the chance of that is not 100 percent,

3:47it is still something that you want to avoid.

3:49And you might say, well, isn't this innocent?

3:52Well, while it might seem innocent, this request could expose personal or

3:56sensitive information because the AI doesn't know what is confidential.

4:01It just follows your words.

4:02So we can go back up here and we can add something called safety.

4:07And I'm just going to say if you find the AI, replace it with placeholders.

4:12Let's just try that very simple line.

4:15OK, with that one very simple line.

4:18Now it's employee A, but we still have project stellar.

4:21So it's not the greatest way to do this.

4:24You are protecting the output.

4:26However, this is still going into a chatbot.

4:29So prompt engineering can help you control what the AI does with language,

4:34but it doesn't anonymize data.

4:36True compliance starts before prompting.

4:39That means that when your organization is collecting this data,

4:43they should have removed that data or anonymized it or

4:47done something to the data pre-processing so that when it hits the database and it's

4:52ready for all of the employees in that organization to consume that data for their work.

4:58You don't want to have to do this in a chatbot.

5:00That is the absolute wrong way to do it because it's already gone into the model

5:05and you don't want to feed that to the model for many reasons.

5:09Even if your chatbot says that it doesn't use the text for training,

5:12you still don't want to do that because data leakage can still happen.

5:16The worst case scenario is that you are using chat GPT and it's being used for training

5:22and you're entering personal data of some individual for a company

5:27and maybe even intellectual property.

5:29That's called PII, personally identifying information like employee A's name,

5:35their performance for their job and the different bonuses that they've made,

5:39financial information.

5:40All of that should not be included in the database.

5:44And if you do have access to that information,

5:46you don't want to put it into the database before it's been redacted

5:50or anonymized or filtered and pre-processed in some way.

5:55So if you do find this,

5:58you can either do it manually before you put it into the model

6:01or reach out to some administrator or the data science department.

6:07They're the ones that would handle the pipeline

6:09that ingests data and makes sure that it's compliant.

6:13And it's not everybody's job,

6:15but when you're working with these models, you want to keep an eye out for this.

6:19It's very important.

6:20And we're going to use prompt engineering to help you identify when this is happening.

6:25And you definitely don't want to use it as an output.

6:28If you're going to send it in an email, for example,

6:30or if it's going to be an output that you're going to include in a newsletter,

6:34that's where you really want to make sure that that's not happening.

6:37But if you do identify any PII, IP or other sensitive data,

6:42you definitely want to reach out to the appropriate department or team

6:46so they can make sure that that data is handled before you use it in any of these models.

6:51What I showed you up here, safety.

6:53This is part of prompt engineering.

6:56And in the next skill, we'll explore concepts like C, R, E,

7:00context, role and expectation, as well as something called ask to and safety.

7:06This is the foundation for prompt engineering,

7:09which will allow you to communicate effectively with software 3.0 models,

7:14such as chatbots like chat GPT, Gemini, Copilot, Grok and Claude from Anthropic.

7:22If you're working with these tools, you absolutely are programming in plain language.

7:28And that really is the best way to put it, because if you talk to it like a human,

7:32because it sounds like a human, that in itself is misleading.

7:36And not only will that give you a false sense of security

7:40to give it information that you should not be giving it,

7:43but it won't give you great outputs either.

7:45So prompt engineering does two things.

7:48It really handles AI compliance, privacy and copyright,

7:52but it also gives you much better output.

7:54So your productivity is going to skyrocket once you use prompt engineering.

7:59But furthermore, you're going to create an environment of compliance,

8:03safety and privacy at your organization,

8:06which is invaluable when you're working with software 3.0.

8:11On that note, I will see you in the next part of the scale, which is the challenge.

8:16And then we'll get into prompt engineering.

8:19Until next time, I hope this has been informative and I'd like to thank you for viewing.

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