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Generative AI

4 min readUpdated May 2026
Generative AI
Output types
Text, image, audio, video, code, 3D
Key architectures
Transformer, Diffusion, GAN, VAE
Notable systems
ChatGPT, Claude, Midjourney, Sora
Market size
~USD 67B (2024)
Growth rate
~36% CAGR to 2030

Generative AI (GenAI) encompasses AI systems trained to produce novel content that resembles their training data. Unlike discriminative models — which classify or predict — generative models learn the statistical structure of a data distribution and can sample new instances from it. The field has grown explosively since 2022, driven by large language models, diffusion image models, and multimodal systems.

Core Architectures

Transformers (for text and multimodal)

The self-attention architecture powers all major LLMs (GPT-4, Claude, Gemini, Llama) and many multimodal models. Text is tokenised, fed through multiple attention and feed-forward layers, and a probability distribution over the vocabulary is produced at each step.

Diffusion Models (for images and audio)

Models like Stable Diffusion, DALL-E 3, and Midjourney learn to progressively denoise a signal — starting from pure Gaussian noise and iteratively refining it toward a coherent image conditioned on a text prompt. Diffusion has largely displaced GANs for image generation due to more stable training and higher quality.

Variational Autoencoders (VAE)

Encode input data into a compressed latent space from which new samples can be decoded. VAEs are used in image generation pipelines (often as the latent space backbone for diffusion models) and in drug discovery.

Generative Adversarial Networks (GAN)

Two competing networks — a generator and a discriminator — train in opposition. GANs produce highly realistic imagery but are notoriously difficult to train. Largely superseded by diffusion for image quality, but still used in video synthesis and style transfer.

Applications

| Domain | Application | Example | |--------|-------------|---------| | Writing | Article drafting, summarisation | Claude, ChatGPT | | Code | Code generation, debugging | GitHub Copilot, Cursor | | Images | Photo generation, illustration | Midjourney, DALL-E 3 | | Video | Short video clips, editing | Sora, Runway Gen-3 | | Audio | Music, speech synthesis | ElevenLabs, Suno | | 3D | Object and scene generation | Point-E, Shap-E | | Drug discovery | Molecular structure generation | AlphaFold 3, RFDiffusion |

Risks and Concerns

  • Deepfakes — photorealistic synthetic media used for misinformation or non-consensual imagery
  • Intellectual property — training on copyrighted data raises unresolved legal questions
  • Hallucination — text models confidently assert false information
  • Bias amplification — models can reproduce and amplify training data biases
  • Environmental cost — training large models consumes significant energy
Enterprise adoption — A 2024 MDEC survey found 38% of Malaysian enterprises had deployed at least one generative AI tool, with SMEs showing the fastest adoption rate. Primary use cases: customer service chatbots, marketing copy, internal knowledge management, and software development. Content and creative industries — Malaysian advertising agencies and media companies (Astro, The Star, Bernama) are experimenting with GenAI for content localisation and BM-language media generation. Bahasa Malaysia prompt quality remains a practical challenge. Deepfake concern — The Malaysian Communications and Multimedia Commission (MCMC) has flagged deepfakes as a priority threat under the Online Safety Act. The 2023 general election saw the first documented use of AI-generated political content in Malaysian social media. MCMC issued an advisory; dedicated legislation is pending. Copyright landscape — Malaysia's Copyright Act 1987 does not specifically address AI-generated works. The Ministry of Domestic Trade and Cost of Living has commissioned a study on AI and IP; interim guidance follows UK precedent (no automatic copyright for AI-only works without human authorship). Vendors active in Malaysia — Adobe Firefly (Creative Cloud), Microsoft Copilot (365 integration), Google Workspace Gemini, and local startups building BM-specific GenAI applications on Anthropic and OpenAI APIs.
  1. Goodfellow, I. et al. (2014). "Generative Adversarial Networks." NeurIPS 2014.
  2. Ho, J. et al. (2020). "Denoising Diffusion Probabilistic Models." NeurIPS 2020.
  3. MDEC (2024). Malaysian Enterprise AI Adoption Survey 2024.