
Jason Beutler – NextGen Healthcare Summit 2025 Recording Series
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AI isn't magical but mathematical, and understanding how it works removes mystery while helping make informed business decisions. We break down the fundamentals of AI in a way that demystifies its inner workings and explains why it's transformative for businesses.
• Understanding how AI processes a simple request like "write a haiku about puppies" reveals its potential for business applications
• AI converts language into mathematical vectors to find relationships between words and concepts
• Context windows limit how much an AI can "remember" in a conversation, similar to human short-term memory
• Retrieval Augmented Generation (RAG) allows businesses to prioritize their own data when generating AI responses
• AI agents can perceive environments, make decisions, and take actions toward specific goals like searching and organizing data
• New business models like "service as software" are emerging, where AI handles operations behind traditional services
• Four principles for effective AI: treat it like a human, include it in brainstorming, expect continuous improvement, and keep humans in oversight roles