- Unit
- Unit 2 of 20
- Recommended period
- Late Week 1 to Week 2
- Primary reading
- Textbook Chapter 2
- Estimated study
- 6–8 hours
- Prerequisite
- Unit 1
- Required platform
- None
- Primary focus
- Conceptual system operation
- Assessment connection
- Assignment 1 continues
Recommended first action: Without reopening Unit 1,
write a short explanation of why fluent AI output is not proof of
understanding or accuracy. Keep this explanation and revise it after
completing Unit 2.
Begin retrieval practice
Unit overview
Unit 2 explains generative AI at a conceptual level without requiring
programming or advanced mathematics. You will examine how training
data, tokens, prompts, context, probabilistic generation, retrieval,
tools, multimodal processing, interfaces, and provider-controlled
settings contribute to a complete AI system. You will also distinguish
the underlying model from the application used to access it and
examine why plausible output may differ across systems, versions,
sessions, and configurations.
From information to tokens
Explore training data, tokens, representations, prompts, and
context as parts of the generation process.
From probabilities to outputs
Understand next-token generation conceptually and why outputs can
vary or contain unsupported content.
From model to system
Distinguish models from applications, retrieval, tools, memory,
multimodal functions, interfaces, and governance.
Central idea: A generative AI system produces
context-sensitive output by modelling patterns and probabilities.
Coherent output does not demonstrate human-like understanding, source
awareness, truthfulness, or accountable judgment.
Unit learning outcomes
By the end of Unit 2, you should be able to:
-
Define training data, token, prompt, context, context window, model,
application, retrieval, tool, and multimodal AI.
-
Explain conceptually how a language model generates one token after
another using conditional probabilities.
-
Distinguish model training from the generation of an output during
use.
-
Explain why the same or similar prompt can produce different outputs
across runs, systems, versions, or configurations.
-
Distinguish the underlying model from the interface, application,
retrieval system, memory, tools, and provider controls around it.
-
Explain how a context window limits the information available during
a particular generation process.
-
Distinguish information contained in model parameters from
information supplied through prompts, retrieval, files, tools, or
connected services.
-
Identify opportunities and risks created by retrieval, tool use,
multimodal processing, and broader AI ecosystems.
-
Explain why probabilistic generation can produce fluent but
unsupported, outdated, incomplete, or contextually unsuitable
output.
-
Construct and use a system map when deciding what evidence,
information boundaries, review, and human control are required.
Unit 2 lessons
Complete these lessons in order. The filenames continue the
course-wide lesson sequence established in Unit 1.
Lesson 1 · Suggested time: 75–90 minutes
2.1 Training Data, Tokens, Prompts, and Context
Examine the information and representations that shape generation,
distinguish training from use, and explore how text is processed
as tokens.
Lesson 2 · Suggested time: 75–90 minutes
2.2 Probabilistic Generation and Context Windows
Build a conceptual next-token model, examine variability, and
assess how context limits and competing instructions influence an
output.
Lesson 3 · Suggested time: 75–90 minutes
2.3 Retrieval, Tools, Memory, and Multimodal AI
Distinguish model generation from retrieved sources, connected
tools, retained information, and the processing of text, images,
audio, video, and documents.
Lesson 4 · Suggested time: 90–120 minutes
2.4 From Model to AI System
Map the complete ecosystem from user and interface to model,
sources, tools, provider settings, outputs, review, decisions, and
accountability.
File-link convention: Keep this homepage and
t-01.html through t-04.html in the same
Moodle folder or content package.
Embedded Unit 2 study guide
This sequence supports asynchronous study from late Week 1 into Week
2. Follow official Moodle dates if they differ.
-
Retrieve
Explain fluency and reliability
before consulting notes.
-
Model generation
Study tokens, prompts,
probabilities, and context.
-
Map the system
Add retrieval, tools, memory,
modalities, and interfaces.
-
Transfer
Revise your explanation and apply the
system map.
-
Session 1: Retrieval and reading, 60–75 minutes.
Recall Unit 1, preview Chapter 2, and identify unfamiliar
terminology without relying on AI-generated definitions.
-
Session 2: Lesson 1, 75–90 minutes.
Map
training data, tokens, prompts, context, and output. Distinguish
training from generation during use.
-
Session 3: Lesson 2, 75–90 minutes.
Use a
simple worked example to explain token-by-token generation,
variability, and context-window limits.
-
Session 4: Lesson 3, 75–90 minutes.
Compare a model-only response with a retrieval- or
tool-supported workflow and identify additional information and
permission risks.
-
Session 5: Lesson 4, 90–120 minutes.
Construct a complete AI-system map and assign human
verification, decision, and stop responsibilities.
-
Session 6: Consolidation, 45–60 minutes.
Revise your opening explanation, complete the self-check,
save evidence, and write your own Assignment 1 notes.
Evidence to retain
-
Initial and revised explanation of fluency without understanding
- Training-versus-generation comparison
- Token and context-window exercise
- Retrieval and tool boundary analysis
- Multimodal information inventory
- Complete AI-system map
- Assignment 1 reflection notes
Show a system-mapping checklist
Identify the human purpose, user, interface, model, prompt,
supplied context, retrieval source, connected tools, memory or
logs, modalities, provider controls, output, reviewer,
decision-maker, action authority, correction process, and stop
authority. Include only components demonstrated or supplied in the
case.
Assignment 1 continues in Unit 2
Assignment 1: AI Learning and Reflection Journal is
worth 15%. Preserve evidence that shows how your
explanation of generative AI changed after examining tokens,
probabilities, context, retrieval, tools, and complete systems.
Official Moodle due date and time: ______________________________
Evidence to preserve
- Your initial explanation before Chapter 2
- Your corrected explanation after Lesson 4
- One misconception you identified
-
One system-level risk that was invisible when viewing only the
model
- One new verification or information boundary
Reflection boundaries
- Write the reflection yourself.
-
Do not present anthropomorphic language as a technical
explanation.
-
Distinguish demonstrated facts from analogy and interpretation.
- Use the textbook terminology where supplied.
Show Unit 2 reflection-planning questions
- How did your mental model of generative AI change?
-
Why can probabilistic generation produce persuasive but false
content?
-
Which system components affect an output beyond the underlying
model?
-
How do retrieval and tools create both opportunities and
additional risks?
-
Which claim about AI “understanding” would you now revise?
Use these questions to plan your own reflection, not as model
responses.
Required learning activities
Unit 2 activities and evidence
| Activity |
Purpose |
Expected product |
Estimated time |
| Training versus use classification |
Distinguish model development from prompting and generation
during use.
|
Classification with explanation |
25–35 minutes |
| Token and probability walkthrough |
Explain generation conceptually without advanced mathematics.
|
Annotated sequence |
35–45 minutes |
| Context-window experiment |
Identify relevant, missing, competing, and excessive context.
|
Context analysis |
30–45 minutes |
| Retrieval-versus-generation comparison |
Distinguish generated content from retrieved evidence and
source citation.
|
Comparison table |
35–50 minutes |
| Tool and permission map |
Identify what a system may read, retrieve, draft, modify,
send, or control.
|
Bounded permission record |
30–45 minutes |
| AI ecosystem map |
Connect people, models, applications, sources, tools, outputs,
and authority.
|
System map with text alternative |
45–60 minutes |
Participation options
Option A: Approved AI system
Compare low-risk outputs using an approved system and only
synthetic, public, supplied, or authorized information.
Option B: Supplied records
Use supplied prompts, outputs, token illustrations, retrieval
records, tool calls, and system descriptions.
Option C: Non-AI analysis
Complete the conceptual modelling and system-mapping activities
without operating an AI system.
All options assess the same conceptual and responsible-use outcomes.
Responsible-use boundaries and support
Boundaries for Unit 2
-
Do not upload confidential, personal, proprietary, privileged,
security-sensitive, or culturally governed information.
-
Do not connect email, files, calendars, payments, cameras,
microphones, location, or external tools.
-
Do not test security weaknesses or prompt injection against real
systems.
-
Do not infer product features that have not been verified.
-
Do not equate prediction of tokens with human understanding or
accountable judgment.
Support and accessibility
-
Use supplied examples if tokenization, visual maps, live
systems, or multimodal features are inaccessible.
- Provide a text description for every system diagram.
-
Contact the course coordinator for conceptual or assignment
questions.
- Use technical or accessibility support when needed.