The fundamentals of AI

AI is no longer a concept confined to research laboratories or science fiction novels. From smartphones that recognise faces to virtual assistants that understand speech and recommendation engines that predict what we want to watch next, AI has become embedded in everyday life.

Behind this transformation lies a set of core principles, or the fundamentals of AI, which explain how machines learn, adapt, and perform tasks once considered the exclusive domain of humans.

At the heart of modern AI are neural networks, mathematical structures inspired by the human brain. They organise computation into layers of interconnected nodes, or artificial neurones, which process information and learn from examples.

Unlike traditional programming, where every rule must be explicitly defined, neural networks can identify patterns in data autonomously. The ability to learn and improve with experience underpins the astonishing capabilities of today’s AI.

Multi-layer perceptron networks

A neural network consists of multiple layers of interconnected neurons, not just a simple input and output layer. Each layer processes the data it receives from the previous layer, gradually building hierarchical representations.

In image recognition, early layers detect simple features, such as edges or textures, middle layers combine these into shapes, and later layers identify full objects, like faces or cars. In natural language processing, lower layers capture letters or words, while higher layers recognise grammar, context, and meaning.

Without multiple layers, the network would be shallow, limited in its ability to learn, and unable to handle complex tasks. Multi-layer, or deep networks, are what enable AI to perform sophisticated functions like autonomous driving, medical diagnosis, and language translation.

How mathematics drives artificial intelligence

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The foundation of AI is mathematics. Without linear algebra, calculus, probability, and optimisation, modern AI systems would not exist. These disciplines allow machines to represent, manipulate, and learn from vast quantities of data.

Linear algebra allows inputs and outputs to be represented as vectors and matrices. Each layer of a neural network transforms these data structures, performing calculations that detect patterns in data, such as shapes in images or relationships between words in a sentence.

Calculus, especially the study of derivatives, is used to measure how small changes in a network’s parameters, called weights, affect its predictions. This information is critical for optimisation, which is the process of adjusting these weights to improve the network’s accuracy.

The loss function measures the difference between the network’s prediction and the actual outcome. It essentially tells the network how wrong it is. For example, the mean squared error measures the average squared difference between the predicted and actual values, while cross-entropy is used in classification tasks to measure how well the predicted probabilities match the correct categories.

Gradient descent is an algorithm that uses the derivative of the loss function to determine the direction and magnitude of changes to each weight. By moving weights gradually in the direction that reduces the loss, the network learns over time to make more accurate predictions.

Backpropagation is a method that makes learning in multi-layer neural networks feasible. Before its introduction in the 1980s, training networks with more than one or two layers was extremely difficult, as it was hard to determine how errors in the output layer should influence the earlier weights. Backpropagation systematically propagates this error information backwards through the network.

At its core, it applies the chain rule of calculus to compute gradients, indicating how much each weight contributes to the overall error and the direction it should be adjusted. Combined with gradient descent, this iterative process allows networks to learn hierarchical patterns, from simple edges in images to complex objects, or from letters to complete sentences.

Backpropagation has transformed neural networks from shallow, limited models into deep, powerful tools capable of learning sophisticated patterns and making human-like predictions.

Why neural network architecture matters

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The arrangement of layers in a network, or its architecture, determines its ability to solve specific problems.

Activation functions introduce non-linearity, giving networks the ability to map complex, high-dimensional data. ReLU (Rectified Linear Unit), one of the most widely used activation functions, addresses critical training issues and enables deep networks to learn efficiently.

Convolutional neural networks (CNNs) excel in image and video analysis. By applying filters across images, CNNs detect local patterns like edges and textures. Pooling layers reduce spatial dimensions, making computation faster while preserving essential features. Local connectivity ensures neurones process only relevant input regions, mimicking human vision.

Recurrent neural networks (RNNs) and their variants, such as LSTMs and GRUs, process sequential data like text or audio. They maintain a hidden state that acts as memory, capturing dependencies over time, a crucial feature for tasks such as speech recognition or predictive text.

Transformer revolution and attention mechanisms

In 2017, AI research took a major leap with the introduction of Transformer models. Unlike RNNs, which process sequences step by step, transformers use attention mechanisms to evaluate all parts of the input simultaneously.

The attention mechanism calculates which elements in a sequence are most relevant to each output. Using linear algebra, it compares query, key, and value vectors to assign weights, highlighting important information and suppressing irrelevant details.

That approach enabled the creation of large language models (LLMs) such as GPT and BERT, capable of generating coherent text, answering questions, and translating languages with unprecedented accuracy.

Transformers reshaped natural language processing and have since expanded into areas such as computer vision, multimodal AI, and reinforcement learning. Their ability to capture long-range context efficiently illustrates the power of combining deep learning fundamentals with innovative architectures.

How does AI learn and generalise?

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One of the central challenges in AI is ensuring that networks learn meaningful patterns from data rather than simply memorising individual examples. The ability to generalise and apply knowledge learnt from one dataset to new, unseen situations is what allows AI to function reliably in the real world.

Supervised learning is the most widely used approach, where networks are trained on labelled datasets, with each input paired with a known output. The model learns to map inputs to outputs by minimising the difference between its predictions and the actual results.

Applications include image classification, where the system distinguishes cats from dogs, or speech recognition, where spoken words are mapped to text. The accuracy of supervised learning depends heavily on the quality and quantity of labelled data, making data curation critical for reliable performance.

Unsupervised learning, by contrast, works with unlabelled data and seeks to uncover hidden structures and patterns. Clustering algorithms, for instance, can group similar customer profiles in marketing, while dimensionality reduction techniques simplify complex datasets for analysis.

The paradigm enables organisations to detect anomalies, segment populations, and make informed decisions from raw data without explicit guidance.

Reinforcement learning allows machines to learn by interacting with an environment and receiving feedback in the form of rewards or penalties. Unlike supervised learning, the system is not told the correct action in advance; it discovers optimal strategies through trial and error.

That approach powers innovations in robotics, autonomous vehicles, and game-playing AI, enabling systems to learn long-term strategies rather than memorise specific moves.

A persistent challenge across all learning paradigms is overfitting, which occurs when a network performs exceptionally well on training data but fails to generalise to new examples. Techniques such as dropout, which temporarily deactivate random neurons during training, encourage the network to develop robust, redundant representations.

Similarly, weight decay penalises excessively large parameter values, preventing the model from relying too heavily on specific features. Achieving proper generalisation is crucial for real-world applications: self-driving cars must correctly interpret new road conditions, and medical AI systems must accurately assess patients with cases differing from the training dataset.

By learning patterns rather than memorising data, AI systems become adaptable, reliable, and capable of making informed decisions in dynamic environments.

The black box problem and explainable AI (XAI)

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Deep learning and other advanced AI technologies rely on multi-layer neural networks that can process vast amounts of data. While these networks achieve remarkable accuracy in image recognition, language translation, and decision-making, their complexity often makes it extremely difficult to explain why a particular prediction was made. That phenomenon is known as the black box problem.

Though these systems are built on rigorous mathematical principles, the interactions between millions or billions of parameters create outputs that are not immediately interpretable. For instance, a healthcare AI might recommend a specific diagnosis, but without interpretability tools, doctors may not know what features influenced that decision.

Similarly, in finance or law, opaque models can inadvertently perpetuate biases or produce unfair outcomes.

Explainable AI (XAI) seeks to address this challenge. By combining the mathematical and structural fundamentals of AI with transparency techniques, XAI allows users to trace predictions back to input features, assess confidence, and identify potential errors or biases.

In practice, this means doctors can verify AI-assisted diagnoses, financial institutions can audit credit decisions, and policymakers can ensure fair and accountable deployment of AI.

Understanding the black box problem is therefore essential not only for developers but for society at large. It bridges the gap between cutting-edge AI capabilities and trustworthy, responsible applications, ensuring that as AI systems become more sophisticated, they remain interpretable, safe, and beneficial.

Data and computational power

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Modern AI depends on two critical ingredients: large, high-quality datasets and powerful computational resources. Data provides the raw material for learning, allowing networks to identify patterns and generalise to new situations.

Image recognition systems, for example, require millions of annotated photographs to reliably distinguish objects, while language models like GPT are trained on billions of words from books, articles, and web content, enabling them to generate coherent, contextually aware text.

High-performance computation is equally essential. Training deep neural networks involves performing trillions of calculations, a task far beyond the capacity of conventional processors.

Graphics Processing Units (GPUs) and specialised AI accelerators enable parallel processing, reducing training times from months to days or even hours. This computational power enables real-time applications, such as self-driving cars interpreting sensor data instantly, recommendation engines adjusting content dynamically, and medical AI systems analysing thousands of scans within moments.

The combination of abundant data and fast computation also brings practical challenges. Collecting representative datasets requires significant effort and careful curation to avoid bias, while training large models consumes substantial energy.

Researchers are exploring more efficient architectures and optimisation techniques to reduce environmental impact without sacrificing performance.

The future of AI

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The foundations of AI continue to evolve rapidly, driven by advances in algorithms, data availability, and computational power. Researchers are exploring more efficient architectures, capable of learning from smaller datasets while maintaining high performance.

For instance, self-supervised learning allows a model to learn from unlabelled data by predicting missing information within the data itself, while few-shot learning enables a system to understand a new task from just a handful of examples. These methods reduce the need for enormous annotated datasets and make AI development faster and more resource-efficient.

Transformer models, powered by attention mechanisms, remain central to natural language processing. The attention mechanism allows the network to focus on the most relevant parts of the input when making predictions.

For example, when translating a sentence, it helps the model determine which words are most important for understanding the meaning. Transformers have enabled the creation of large language models like GPT and BERT, capable of summarising documents, answering questions, and generating coherent text.

Beyond language, multimodal AI systems are emerging, combining text, images, and audio to understand context across multiple sources. For instance, a medical AI system might analyse a patient’s scan while simultaneously reading their clinical notes, providing more accurate and context-aware insights.

Ethics, transparency, and accountability remain critical. Explainable AI (XAI) techniques help humans understand why a model made a particular decision, which is essential in fields like healthcare, finance, and law. Detecting bias, evaluating fairness, and ensuring that models behave responsibly are becoming standard parts of AI development.

Energy efficiency and sustainability are also priorities, as training large models consumes significant computational resources.

Ultimately, the future of AI will be shaped by models that are not only more capable but also more efficient, interpretable, and responsible.

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Russia moves forward with a nationwide plan for generative AI

A broad plan to integrate generative AI across public administration and key sectors of the economy is being prepared by Russia.

Prime Minister Mikhail Mishustin explained that the new framework seeks to extend modern AI tools across regions and major industries in order to strengthen national technological capacity.

The president has already underlined the need for fully domestic AI products as an essential element of national sovereignty. Moscow intends to rely on locally developed systems instead of foreign platforms, an approach aimed at securing long-term independence and resilience.

A proposal created by the government and the Presidential Administration has been submitted for approval to establish a central headquarters that will guide the entire deployment effort.

The new body will set objectives, track progress and coordinate work across ministries and agencies while supporting broader access to advanced capabilities.

Officials in Russia view the plan as a strategic investment intended to reinforce national competitiveness in a rapidly changing technological environment.

Greater use of generative systems is expected to improve administrative efficiency, support regional development and encourage innovation across multiple sectors.

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Canada-EU digital partnership expands cooperation on AI and security

The European Union and Canada have strengthened their digital partnership during the first Digital Partnership Council in Montreal. Both sides outlined a joint plan to enhance competitiveness and innovation, while supporting smaller firms through targeted regulation.

Senior representatives reconfirmed that cooperation with like-minded partners will be essential for economic resilience.

A new Memorandum of Understanding on AI placed a strong emphasis on trustworthy systems, shared standards and wider adoption across strategic sectors.

The two partners will exchange best practices to support sectors such as healthcare, manufacturing, energy, culture and public services.

They also agreed to collaborate on large-scale AI infrastructures and access to computing capacity, while encouraging scientific collaboration on advanced AI models and climate-related research.

A meeting that also led to an agreement on a structured dialogue on data spaces.

A second Memorandum of Understanding covered digital credentials and trust services. The plan includes joint testing of digital identity wallets, pilot projects and new use cases aimed at interoperability.

The EU and Canada also intend to work more closely on the protection of independent media, the promotion of reliable information online and the management of risks created by generative AI.

Both sides underlined their commitment to secure connectivity, with cooperation on 5G, subsea cables and potential new Arctic routes to strengthen global network resilience. Further plans aim to deepen collaboration on quantum technologies, semiconductors and high-performance computing.

A renewed partnership that reflects a shared commitment to resilient supply chains and secure cloud infrastructure as both regions prepare for future technological demands.

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Survey reveals split views on AI in academic peer review

Growing use of generative AI within peer review is creating a sharp divide among physicists, according to a new survey by the Institute of Physics Publishing.

Researchers appear more informed and more willing to express firm views, with a notable rise in those who see a positive effect and a large group voicing strong reservations. Many believe AI tools accelerate early reading and help reviewers concentrate on novelty instead of routine work.

Others fear that reviewers might replace careful evaluation with automated text generation, undermining the value of expert judgement.

A sizeable proportion of researchers would be unhappy if AI-shaped assessments of their own papers, even though many quietly rely on such tools when reviewing for journals. Publishers are now revisiting their policies, yet they aim to respect authors who expect human-led scrutiny.

Editors also report that AI-generated reports often lack depth and fail to reflect domain expertise. Concerns extend to confidentiality, with organisations such as the American Physical Society warning that uploading manuscripts to chatbots can breach author trust.

Legal disputes about training data add further uncertainty, pushing publishers to approach policy changes with caution.

Despite disagreements, many researchers accept that AI will remain part of peer review as workloads increase and scientific output grows. The debate now centres on how to integrate new tools in a way that supports researchers instead of weakening the foundations of scholarly communication.

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Egypt reaffirms commitment to AI and digital transformation

During a recent meeting with the Digital Cooperation Organization (DCO) at the Doha Forum, Egypt’s Foreign Minister Badr Abdelatty reaffirmed the country’s dedication to advancing responsible digital transformation, data governance and AI.

He highlighted Egypt’s active role not only domestically but across the Arab and African regions, positioning the country as a key partner in shaping multilateral frameworks for digital cooperation. Among the milestones he noted were the launch of the second phase of Egypt’s national AI strategy and the adoption, in 2025, of a national open-data policy.

As well as AI and data governance, the agenda includes expanding digital capacity building, strengthening cybersecurity, and exploring future cooperation in AI, digital inclusion, and public-private collaborations.

This commitment aligns with broader government efforts: earlier in 2025, Egypt approved its first Open Data Policy, making public-sector data more accessible and machine-readable, a foundational step for data-driven governance, transparency and innovation.

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Japan turns to AI and robotics to tackle dementia crisis

Japan is intensifying efforts to use technology to address a worsening dementia crisis, as more than 18,000 older people went missing last year and care-related costs continue to climb.

With nearly 30% of its population now aged 65 or older, Japan is experimenting with GPS wearables and community alert systems that help authorities locate missing individuals within hours. AI tools are also entering clinical practice, including Fujitsu’s aiGait system, which analyses posture and movement to detect early cognitive decline.

Researchers at Waseda University are developing AIREC, a humanoid robot that can perform basic daily-living tasks and may one day assist with continence care and pressure-ulcer prevention.

Smaller social robots such as Sharp’s Poketomo aim to reduce loneliness by prompting medications, offering weather updates and providing companionship. Despite this technological push, caregivers and researchers stress that human connection remains fundamental.

Community initiatives such as Tokyo’s Restaurant of Mistaken Orders show how social engagement can support dignity and wellbeing even as automation and AI begin to supplement routine care tasks.

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Growing app restrictions hit ByteDance’s AI smartphone rollout

ByteDance is facing mounting pushback after major Chinese apps restricted how its agentic AI smartphone can operate across their platforms. Developers moved to block or limit Doubao, the device’s voice-driven assistant, following concerns about automation, security and transactional risks.

Growing reports from early adopters describe locked accounts, interrupted payments and app instability when Doubao performs actions autonomously. ByteDance has responded by disabling the assistant’s access to financial services, rewards features and competitive games while collaborating with app providers to establish clearer guidelines.

The Nubia M153, marketed as an experimental device, continues to attract interest for its hands-free interface, even as privacy worries persist over its device-wide memory system. Its long-term success hinges on whether China’s platforms and regulators can align with ByteDance’s ambitions for seamless, AI-powered smartphone interaction.

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Creatives warn that AI is reshaping their jobs

AI is accelerating across creative fields, raising concerns among workers who say the technology is reshaping livelihoods faster than anyone expected.

A University of Cambridge study recently found that more than two-thirds of creative professionals fear AI has undermined their job security, and many now describe the shift as unavoidable.

One of them is Norwich-based artist Aisha Belarbi, who says the rise of image-generation tools has made commissions harder to secure as clients ‘can just generate whatever they want’. Although she works in both traditional and digital media, Belarbi says she increasingly struggles to distinguish original art from AI output. That uncertainty, she argues, threatens the value of lived experience and the labour behind creative work.

Others are embracing the change. Videographer JP Allard transformed his Milton Keynes production agency after discovering the speed and scale of AI-generated video. His company now produces multilingual ‘digital twins’ and fully AI-generated commercials, work he says is quicker and cheaper than traditional filming. Yet he acknowledges that the pace of change can leave staff behind and says retraining has not kept up with the technology.

For musician Ross Stewart, the concern centres on authenticity. After listening to what he later discovered was an AI-generated blues album, he questioned the impact of near-instant song creation on musicians’ livelihoods and exposure. He believes audiences will continue to seek human performance, but worries that the market for licensed music is already shifting towards AI alternatives.

Copywriter Niki Tibble has experienced similar pressures. Returning from maternity leave, she found that AI tools had taken over many entry-level writing tasks. While some clients still prefer human writers for strategy, nuance and brand voice, Tibble’s work has increasingly shifted toward reviewing and correcting AI-generated copy. She says the uncertainty leaves her unsure whether her role will exist in a decade.

Across these stories, creative workers describe a sector in rapid transition. While some see new opportunities, many fear the speed of adoption and a future where AI replaces the very work that has long defined their craft.

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Claude Code expands automated AI fine tuning for businesses

Anthropic’s Claude Code now supports automated fine-tuning of open-source AI models, significantly widening access to advanced customisation for small-to-medium-sized (SMB) businesses. The new capability allows companies to train personalised systems using their own data without needing specialised technical expertise.

Claude Code’s hf-llm-trainer skill manages everything from hardware selection to authentication and training optimisation, simplifying what was once a highly complex workflow. Early accounts suggest the process can cost only a few cents, lowering barriers for firms seeking tailored AI solutions.

Businesses can now use customer logs, product manuals or internal documents to build AI models adapted to their operations, enabling improved support tools and content workflows. Many analysts view the advance as a major step in giving SMBs affordable access to company-specific AI that previously required substantial investment.

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New interview study tracks how workers adapt to AI

Anthropic has unveiled Anthropic Interviewer, an AI-driven tool for large-scale workplace interviews. The system used Claude to conduct 1,250 structured interviews with professionals across the general workforce, creative fields and scientific research.

In surveys, 86 percent said AI saves time and 65 percent felt satisfied with its role at work. Workers often hoped to automate routine tasks while preserving responsibilities that define their professional identity.

Creative workers reported major time savings and quality gains yet faced stigma and economic anxiety around AI use. Many hid AI tools from colleagues, feared market saturation and still insisted on retaining creative control.

Across groups, professionals imagined careers where humans oversee AI systems rather than perform every task themselves. Anthropic plans to keep using Anthropic Interviewer to track attitudes and inform future model design.

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