How AI Makes Decisions

What happens when an AI produces an output, and why it matters for how you use it

You don't need to understand transformers. You do need to understand that AI outputs are probabilistic, that confidence and correctness are independent, and that context windows are a hard physical constraint. This module covers the mechanisms that underlie modern AI architectures, and how they fail.

How AI Makes Decisions
  • ~50 mins
  • 3 lessons
  • foundation
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  • Explain in non-technical terms why AI outputs are probabilistic and what that means for verification
  • Describe the context window constraint and how it affects tool behaviour at scale
  • Articulate why a model can be highly confident and completely wrong simultaneously
  • Apply this understanding to evaluate when AI tool output requires human verification
1 Probability, Not Logic 20–25 mins
2 The Context Window 20–25 mins
3 Confidence Without Correctness 20–25 mins