Fundamental AI Concepts
=======================

**AI Factory** builds on modern AI concepts, architectures, and
technologies to enable advanced data-driven and intelligent
applications.

This page explains key **industry concepts** that form the foundation of
AI Factory’s design and capabilities:

- AI concepts

- Vector and semantic search

- Retrieval-augmented generation (RAG)

- AI for databases

- AI for infrastructure

- Hybrid and Sovereign AI architectures

To see how these concepts are implemented in AI Factory and Hybrid
Manager, start with:

- :ref:`Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads) <Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads)>`  

- :ref:`AI Factory terminology <AI Factory terminology>`  

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Before you start
----------------

You’ll get the most out of this section if you have:

- A basic understanding of **AI workflows**

- Familiarity with **vector databases** and **semantic search**

- Awareness of **AI pipelines** and **LLM architectures**

- Helpful: experience with **AI Factory Concepts** and :ref:`Getting Started - AI Factory 101 <Getting Started - AI Factory 101>` 

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Core AI concepts
----------------

Learning systems and model training
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Learning systems enable models to learn from data and improve
performance on specific tasks without explicit programming.

Common learning types:

- **Supervised learning** — Predict based on labeled data (ex: sales
  forecasting)

- **Unsupervised learning** — Find patterns in unlabeled data (ex:
  customer segmentation)

- **Reinforcement learning** — Learn through interaction and reward
  feedback (ex: game-playing agents)

Infrastructure needs:

- Scalable storage for training data

- Compute for model training (CPUs, GPUs, TPUs)

- Optimized serving infrastructure for inference

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Deep learning (DL) & neural networks
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

DL uses deep neural networks with multiple layers to extract and learn
complex patterns.

Strengths:

- Handles unstructured data (images, text, audio, video)

- Powers advanced applications such as image recognition, speech
  recognition, text generation

Infrastructure needs:

- High-performance compute (GPUs or TPUs)

- Optimized data pipelines and model serving infrastructure

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Natural language processing (NLP)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

NLP applies AI to understand and generate human language.

Common use cases:

- Text classification

- Sentiment analysis

- Machine translation

- Conversational AI

- Intelligent document processing

- Content summarization

Infrastructure needs:

- Large model architectures (Transformers)

- Low-latency serving infrastructure for real-time interaction

- Data pipelines to feed and fine-tune models

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Large language models (LLMs)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^

LLMs are advanced NLP models based on deep learning architectures such
as Transformers.

Key characteristics:

- Trained on massive text corpora

- Generate coherent, context-aware text

- Support chatbots, content generation, code assistants, advanced Q&A

LLMs are the foundation for modern Gen AI applications.

Infrastructure needs:

- Enormous compute and storage for training

- GPU-optimized serving for real-time inference

- Scalable infrastructure for multi-user workloads

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Embeddings and vector representations
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

**Embeddings** are dense vector representations of data, capturing
semantic meaning in numerical form.

Applications:

- Semantic search

- Personalization and recommendations

- Anomaly detection

- RAG (retrieval-augmented generation)

How embeddings are used:

- Convert text, images, audio, video, or structured data into vectors

- Store in vector databases or Postgres with pgvector

- Perform similarity search using approximate nearest neighbor (ANN)
  algorithms

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Vector databases and semantic search
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Databases optimized to store and search embeddings.

Key features:

- Fast vector similarity search

- High-dimensional vector storage

- Scale to billions of vectors

- Support for hybrid search (vector + keyword / filter)

Common use cases:

- Semantic search engines

- Personalized recommendations

- Knowledge assistants with grounding

- Fraud detection and anomaly detection

- Enhanced Gen AI pipelines (RAG)

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Retrieval-augmented generation (RAG)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

**RAG** combines vector search with LLMs to generate grounded responses.

How it works:

1. User query → converted to embedding

2. Vector search retrieves relevant documents / content

3. Retrieved context is injected into LLM prompt

4. LLM generates a response using both its model knowledge and retrieved
   context

Benefits:

- More accurate and grounded AI responses

- Real-time, dynamic knowledge integration

- Support for domain-specific and compliance-aware AI applications

RAG is a core architecture pattern supported by AI Factory.

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AI for databases
----------------

Intelligent database management
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Using AI to optimize database operations:

- Automated performance tuning

- Intelligent query optimization

- Proactive resource management

- Predictive maintenance

- Self-healing capabilities

Goal: **autonomous, highly optimized database infrastructure**.

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In-database AI
^^^^^^^^^^^^^^

Perform model training and inference **inside the database**, reducing
data movement.

Benefits:

- Faster insights and response times

- Simplified architecture

- Lower latency for in-database applications

- Real-time prediction capabilities

- Streamlined model operations workflows

Example: invoking models from SQL in Postgres.

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Vector databases in Postgres
^^^^^^^^^^^^^^^^^^^^^^^^^^^^

AI Factory leverages **pgvector** extension in Postgres:

- Native vector type and operations

- Integration with AI pipelines and embedding models

- Full integration with Hybrid Manager and Model Serving

- Enable semantic search and RAG pipelines on **your Postgres data**

Brings AI capabilities closer to core data.

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AI for infrastructure
---------------------

AI-accelerated hardware (GPUs, TPUs)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

AI workloads depend heavily on specialized hardware:

- **GPUs** — General-purpose acceleration for training and inference

- **TPUs** — ASICs optimized for deep learning

- **Other accelerators** — FPGAs, inference chips

Benefits:

- Orders-of-magnitude speedup for model training

- High throughput for production inference

- Efficient resource utilization in cloud-native AI clusters

AI Factory integrates optimized GPU serving via **KServe**.

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Leveraging cloud compute for AI workloads
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Modern AI workloads rely on cloud compute to scale:

- GPU / TPU instances on demand

- Managed Kubernetes services for training and serving (ex: Hybrid
  Manager)

- Optimized AI stacks (CUDA, PyTorch, TensorFlow, JAX)

- Distributed model training with advanced networking

- Hybrid and multi-cloud architectures

Goals:

- Maximize flexibility and performance

- Minimize cost

- Enable portability across cloud providers and environments

AI Factory supports **hybrid cloud** and **Sovereign AI** patterns
natively.

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Hybrid and Sovereign AI
-----------------------

Modern enterprises increasingly require **Sovereign AI**:

- Data remains in your infrastructure and control

- AI pipelines leverage your trusted knowledge and content

- Model serving runs in your infrastructure (ex: Hybrid Manager +
  KServe)

- Governance, observability, and compliance are built in

AI Factory enables:

- AI in Postgres

- Pipelines and Knowledge Bases with **your data**

- Model Serving in your Kubernetes cluster

- Full visibility and control via Hybrid Manager dashboards

**Sovereign AI** is a first-class design goal for EDB AI Factory.

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Related concepts
----------------

- :ref:`Fundamental AI Concepts <Fundamental AI Concepts>`  

- :ref:`Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads) <Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads)>`  

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Next steps
----------

To see how these concepts power **EDB AI Factory**, continue with:

- :ref:`Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads) <Gen AI Builder Concepts (Assistants, Knowledge, Tools, Threads)>`  

- :ref:`AI Factory terminology <AI Factory terminology>`  

- :ref:`Getting Started - AI Factory 101 <Getting Started - AI Factory 101>`  

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