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Artificial intelligence (AI) has become a central technology in people's lives and in the strategy of companies. In just over a decade, we've gone from interacting with virtual assistants that understood simple commands, to seeing systems capable of writing entire reports, creating hyper-realistic images, or even writing code.

This visible leap has made many wonder: is it all the same? What is the difference between what we already knew as AI and this new "Generative AI" that is so much talked about?

In this article we are going to organize those ideas and explain, with clear examples, how "Traditional" AI and Generative AI fit  under the great umbrella of artificial intelligence.

Traditional AI: analysis and prediction

For many years, what we understood by AI was closer to what we now call "Traditional AI". These systems are characterized by solving concrete, well-defined problems within a framework of available rules or data.

Some practical examples:

• Recommendation engines: Spotify suggests songs based on your listening history and Netflix adjusts its catalog to your personal tastes, generating up to 80% of views on the platform.

• Prediction systems: Walmart uses predictive models to anticipate the demand for products based on factors such as weather or local events; Red Eléctrica de España applies similar algorithms to forecast electricity consumption and balance the grid.

• Automatic recognition: Google Photos classifies images by recognizing faces and objects; Visa and Mastercard use anomaly detection models to identify fraud in real time; Tools like Otter.ai automatically transcribe meetings and calls.

In all these cases, the models learn from past data to provide a classification, prediction, or decision. They do not invent anything new, but recognize patterns and apply them to the future.

Generative AI: content creation

The novelty of generative AI is that it not only analyzes, but also produces (generates) from the data it has.

In practice, this means that:

• You can generate structured text from a couple of initial ideas.

• You can combine existing visual elements from a written description.

• You can create product prototypes, draft presentations, or propose code snippets based on learned patterns.

The key is that generative models don't just classify or predict, they generate new combinations based on what they learned during their training.

The impact of this breakthrough is enormous: in the development world, GitHub Copilot already includes agents that detect and fix programming errors on their own; in design, Google's Nano Banana  tool  promises to revolutionize image editing with an efficiency that could render programs like Photoshop obsolete; and in music, entirely AI-created bands like Velvet Velvet Sundown they already exceed one million monthly listeners on Spotify, with songs, images and biography fully generated, without real musicians behind them.

When is it best to use each type of AI?

The choice between Traditional and Generative AI is not a matter of fashion, but of what specific need you want to solve. Each shines in different situations:

Traditional AI: the best option when...

• You need to predict future behaviors based on historical data (sales, energy consumption, predictive maintenance).

• You want to detect anomalies or classify information accurately (transaction fraud, imaging, spam).

• You are looking  to optimize processes to gain efficiency (logistics, transport routes, inventory management).

• You work in critical environments where reliability and accuracy are a must (health, energy, finance).

Use it when the goal is to make decisions based on real data with the highest possible accuracy.

Generative AI: the best option when...

• You need to create content (texts, images, music, videos, code).

• You want to prototype or experiment quickly, exploring different scenarios before deciding (product design, R+D testing).

• You are looking for more natural interaction with users (chatbots, virtual assistants, conversational interfaces).

• You require large-scale personalization, generating messages or materials adapted to each individual (marketing, training, education).

• You are interested in simulating scenarios that you cannot easily obtain with real data (fictitious clinical cases, synthetic data to train other models).

Use it when the goal is to create, personalize, or interact in a more human and flexible way.

An example from the health field illustrates this well:

• Traditional AI can analyze thousands of clinical records to anticipate the likelihood of a patient developing a disease.

• Generative AI can create fictional scenarios to train medical students, generating realistic clinical cases without exposing real patient data.

Do they compete or complement each other?

In 2019, Gartner introduced the concept of Composite AI to describe hybrid solutions that combined different AI approaches to solve a problem more comprehensively. Although it was a term that was not very widespread then, today it is more relevant than ever thanks to the emergence of Generative AI.

Generative AI does not replace Traditional AI, but rather complements it. When you integrate both approaches into a single workflow, you achieve much more powerful results than if you used each technology separately.

Although, according to Gartner, Composite AI is still in the Innovation Trigger phase, where an emerging technology begins to generate interest, and although its practical use is still limited, we already see many new trends being generated in multiple sectors:

• In retail: A traditional system predicts how many orders a store will receive next week, and generative AI automatically generates personalized product descriptions for customers of those orders.

• In education: a traditional model assesses student progress and detects weak areas, while generative AI designs exercises or materials tailored to those needs.

• In industrial design: a traditional algorithm optimizes manufacturing logistics, while a generative AI proposes prototypes of new parts or products.

Ultimately, instead of questioning which type of AI is more advanced, the right thing to do is to ask: what problem do I want to solve, and which AI approach is right for it?

Content created by Juan Benavente, senior industrial engineer and expert in technologies related to the data economy. The content and views expressed in this publication are the sole responsability of the author.