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Module 2

Intro to Core Concepts & Terms

AI Fundamental Terminology

Now that you've gotten your feet wet with basic prompt engineering in Module 1.1, it's time to dive deeper into the core concepts that will make you a more effective prompt engineer. Think of what we've learned so far as learning to drive a car - you know how to operate the vehicle, but now we're going to look under the hood to understand how it works.

What You'll Learn

In this module, you'll discover:

  • How AI language models actually work (in practical terms)
  • What tokens are and why they matter for your prompts
  • How context windows affect your interactions
  • The key terminology that professional prompt engineers use daily

Why This Matters

Understanding these fundamentals will help you:

  • Write more efficient prompts that use fewer tokens
  • Manage context effectively for better results
  • Communicate professionally about prompt engineering
  • Troubleshoot when things don't work as expected

Module Structure

This module is broken down into three main sections, each one building upon the last. We'll begin by introducing AI at its broadest sense, showcasing how generative AI fits into the picture. Using this information, we'll focus on the different types of AI models, showcasing what they can do, what they cannot do, and highlighting considerations for using each one. Then, we'll start getting a bit more technical. Beginning with core terminology, like tokens, context windows, and memory, we'll provide a dictionary of concepts to help optimize your prompt engineering experience.

How to Approach This Module

For best results, we recommend that you embrace the same strategies that you used with the previous module:

  1. Take your time with each concept
  2. Try the interactive examples
  3. Practice with real AI models when possible
  4. Complete all exercises before moving on
  5. Use the knowledge checks to confirm your understanding
These tactics will significantly enhance your ability to learn and, more importantly, apply your knowledge.

Putting It All Together

Before we dive into the technical concepts, let's do a quick reflection:

Quick Think: In your previous interactions with AI models, what aspects of their behavior seemed mysterious or unpredictable to you? Keep these questions in mind as we explore the underlying concepts - you might find your answers along the way!

Ready to begin? Let's start by understanding the fundamentals of language models and how they shape our interaction with AI systems.