How does AI work
Everyone’s talking about AI right now—but most people still don’t really know how it works. Maybe you've heard of tools like ChatGPT, but you're not sure what’s going on behind the scenes, or how to actually use it to help your business.
At SOLVD, we help mid-market SaaS leaders unlock real value from AI—not just the hype. If you’ve been wondering what’s actually happening when AI answers a question, this breakdown is for you.
“AI’s been around for a long time, but not in the same form.” - Evan Connell, Consulting Manager at SOLVD
Let’s simplify it.
What Is This Kind of AI?
When people mention AI today, they’re usually talking about large language models (LLMs)—tools like ChatGPT or Claude. These are advanced systems that generate words based on patterns in data.
“All this is, is a network of... matrix multiplication. It’s a very large, complicated math problem that accepts inputs, then predicts the most likely next word.” - Evan Connell, Consulting Manager at SOLVD
Basically, the model takes what you type (the input) and starts predicting the next word, one word at a time, until it finishes the sentence or reaches a natural stopping point. That’s how it builds its responses—from recipes to business strategies.
Why Prompts and Context Matter
Here’s the part most people overlook: What you put in changes what you get out.
If you give the model a simple prompt, you’ll get a simple (and maybe generic) response. But if you give it more context—details about your industry, your customers, or your goals—you’ll get a much smarter answer.
“Your customers... there’s a lot of things specific to them. Specific to your business. Specific to your industry. It would be helpful to tell the AI.” - Evan Connell, Consulting Manager at SOLVD
Say you want to make cookies for someone with a nut allergy. If you just ask, “Give me a cookie recipe,” you might get one that includes walnuts. But if you explain the allergy, you’ll get something much more helpful.
This works the same way in business. AI tools don’t know your company unless you give them the right context.
Prompting Like a Pro
Want better results from AI? Learn how to prompt it well. One easy tip: tell it who to be before asking your question.
“You are an expert in marketing... then you ask your marketing question.” - Evan Connell, Consulting Manager at SOLVD
By setting the role or expertise, you’ll often get more accurate, relevant answers.
You can also use tools (like the ones we build at SOLVD) to automatically pull in context—so your team doesn’t have to type everything out manually every time. This helps AI provide better, more personalized responses.
Bringing It All Together
AI doesn’t have to be a mystery. It’s just a tool—and like any tool, it works best when used correctly.
✅ Know how it works (predicting words based on input)
✅ Give it good context
✅ Use strong prompts
✅ Automate context when possible
This is how you go from generic chatbot replies to real business results powered by AI.
Want to Put AI to Work in Your Business?
At SOLVD, we help SaaS leaders build AI systems that actually move the needle—by combining tools like Salesforce, LLMs, and smart automation.
💬 Let’s talk. We’ll help you design a setup that saves time, reduces manual work, and helps your team make better decisions—faster.