Understanding AI: a reading guide

Five things that explain most of what you have seen AI do, and then three routes through what we have published. No prior knowledge is assumed.

Every reading time below is measured from the actual length of the piece, not estimated. The articles are published by My Digital Sovereignty Limited across its two sites, so some links change domain — same author, same infrastructure.

All of it may be quoted or republished with attribution. There is nothing to sign up for.

Start here · about six minutes

Five things that explain most of what you have seen AI do

Not a summary of the field. Five mechanisms, each of which accounts for something you have probably already watched one of these systems do.

1. It predicts the next word. It does not know things.

A language model is trained to continue text. Given what has come so far, it works out what is most likely to come next, then does that again, and again. That is the whole mechanism.

Nothing in that process checks whether the result is true. It checks whether the sentence looks like the sentences it learned from. Fluency and accuracy are produced by different things, which is why you can get a beautifully written paragraph citing a court case that does not exist. The model was not lying. It was doing the only thing it does, and a plausible-looking citation is exactly what should come next in a paragraph like that.

The practical consequence: confidence tells you nothing. It is equally confident when it is right and when it is inventing.

2. It learned from somebody's writing. Whose?

Try this. Ask it something detailed about New York. Then ask it something equally detailed about the town you grew up in. The difference between those two answers is the training data.

These systems learned from an enormous quantity of text, and that text is not evenly spread. Places, people and subjects that are heavily written about in English are represented richly. Everywhere else is thin, and where it is thin the model fills the gap with whatever pattern fits. It does not announce the difference.

So the question "what does it know about this?" is really "how much did people write about this, in a language and a forum the model was trained on?" For a New Zealand subject, that is often the whole story.

3. Whoever owns the model sets its manners.

Ask the same contentious question of two different systems and you will often get two different answers, sometimes in different registers. That is not the models disagreeing about the facts. Someone decided what each one will discuss, what it will decline, how cautious it should sound, and whose complaints it should avoid attracting.

Those are ordinary product decisions, made by the company that trained the model, in its own country, under its own law and its own commercial interest. There is nothing conspiratorial about it. But it means a sentence beginning "AI says…" is doing a lot of hidden work. What is actually being reported is what one company has configured its product to say.

It follows that who owns the thing is not a side issue. It is part of the answer you get.

4. It forgets because it has to.

There is a hard limit on how much text one of these systems can hold in view at once. Everything counts towards it: your instructions, the conversation so far, any document you pasted, and its own replies. When the limit is reached, the oldest material falls out of view.

This is why a long conversation degrades. It contradicts something you agreed half an hour ago, or forgets a constraint you were careful to set at the start. It is not being evasive. That part is simply no longer in front of it.

The practical move is to put what matters in the message you are sending now, rather than trusting that something you said thirty messages ago still counts.

5. Some of it you can check. Know which.

Claims from these systems come in three kinds, and they need different treatment. There are things you can verify in under a minute — a date, a quotation, a citation, a statistic. Check those, every time, because they are exactly where invention hides. There are things you cannot verify but can attribute: who said this, where, when. And there are things that are simply the model's pattern, with nobody behind them at all.

The dangerous kind is the middle one dressed as the first: confident, specific, plausible, and attached to no source you can follow.

It is a fair question to ask of anything you read, including this site. Some of what we publish carries a sealed record — the text hashed, signed, and stamped with a date by an outside authority — so you can confirm for yourself when it was written and that it has not been altered since. There is more on that below, including how to check one.

The shape of it · about four minutes

What sits on what

People say “AI” for the whole of this, which makes it hard to ask a useful question about any part of it. It is a stack. Each layer rests on the one below, and each has a different owner, in a different country, answerable to different law.

The AI stack, from what you touch down to what it runs on Seven layers. From the top: what you actually touch; agentic infrastructure, which decides what an agent may do and what record it leaves; agents; models; serving and inference; training data; and compute and energy. Each layer rests on the one below it, and each has a different owner. What you actually touch The chat box, the assistant in your document, the thing that books the flight. Agentic infrastructure What an agent is allowed to do, who it acts for, and what record it leaves. The layer most arguments skip. Agents A model given tools, memory and permission to act rather than only answer. Models The trained weights. Today mostly next-word predictors; the coming bet is different. Serving and inference The machines the model actually runs on, in a country, under a law. Training data Whose writing, whose images, gathered on whose terms. Compute and energy Chips, buildings, power. The part that cannot be conjured.

Most public argument is about the middle: which model is best, whether it will take your job. The layer that decides what actually happens to you is the one directly above it. Agentic infrastructure is where it is settled what an agent may do, on whose behalf it acts, what it is allowed to reach, and what evidence it leaves behind. A model that can draft an email is a curiosity. A model wired to your calendar, your bank and your filing, with standing permission to act, is a different proposition, and the difference is not in the model at all.

That layer is where the next wave of products will be launched from, and it is the least examined part of the stack. It is also the part a community, a business or a country can actually own — you are unlikely to build a frontier model, but you can absolutely decide what agents may do in your own affairs, and keep the record of what they did.

A worked example, from Christchurch

Ben Reid of Memia built Sensorium over eighteen months, working with AI coding agents. He calls it an exocortex: it reads thousands of technology articles a week and gives him back what matters for his newsletter. He did not train a model. He assembled the layer above one, and got a capability that did not previously exist for a research outfit of his size.

That is the shape of the next few years for most organisations. Not building the engine. Building the thing that decides where the engine is pointed, and keeping the receipts.

The other bet: models that know how things work

Everything above describes systems that predict the next word. There is a serious argument that this is a dead end for anything requiring judgement about the physical world, and its best-known advocate is Yann LeCun, who spent a decade as Meta’s chief AI scientist.

His alternative is a world model: rather than learning what text usually follows other text, the system learns how an environment behaves, so it can predict what would happen if it did something — before doing it. The technical approach is called JEPA, and it predicts at the level of abstract representation rather than generating raw output. A system like that can plan, because it can imagine consequences. A next-word predictor cannot, which is why it will confidently describe a physical impossibility.

LeCun left Meta in December 2025 to found AMI Labs on this bet. It raised a billion dollars of seed funding at a three-and-a-half billion dollar valuation, which tells you how seriously the argument is taken. Worth noticing where: Paris, not California. The most substantial challenge to the American approach is being mounted from Europe, and nothing about the next decade is settled.

Machines that sense, rather than read

Everything so far learned from text and pictures scraped off the internet. A separate line of work starts from the other end: give a machine actual senses and let it learn from what it encounters. This is where the phrase embodied AI belongs, and the current effort goes under the ungainly name vision-language-action models — systems that take an instruction in ordinary words, look at the room, and move something. The unsolved parts are exactly what you would guess: turning a sentence into a safe sequence of actions, fusing senses that disagree with each other, and knowing when the machine is not sure enough to proceed.

The sensing hardware is changing under it. An event camera throws the frame away. Rather than photographing the whole scene sixty times a second, each pixel reports only when the light falling on it changes — which is roughly what your own retina does. The result sees in near-darkness, resolves movement at microsecond speed, and produces a fraction of the data. Prophesee, Sony and iniVation all ship them, and they are arriving in cars, headsets and robots now rather than eventually.

There is a reason to care beyond the engineering. A sensor that emits a trickle of change instead of a torrent of video is one you can process on the device, in the room, without shipping the footage to somebody else’s computer. The economics that pushed perception into the cloud are not fixed, and some of what made surveillance cheap is being undone by people optimising for battery life.

Where it is going · about three minutes

What is coming, and what we build on

Models are getting smaller, and stranger

Two shifts matter more than the headline race. The first is small models. A great deal of what people use these systems for does not need the largest model ever built, and a specialised model of modest size, trained for one community or one trade, will often beat a general giant at that community’s work. Small enough matters because small enough runs on hardware you own.

The second is a different way of generating text altogether. Everything described earlier writes left to right, one word at a time, which cannot be hurried. Diffusion language models instead start with masked noise and refine the whole passage at once, the way image generators do. LLaDA came out of Renmin University, Mercury out of Inception Labs, which reports over a thousand tokens a second on standard datacentre hardware — several times what conventional models of similar capability manage. Inception argue the gain is not only speed: because the model is not restricted to what it has already written, it can structure an answer as a whole. If that holds, the cost of running a capable model on your own machine falls by an order of magnitude, and a good deal of what is currently rented becomes ownable.

Situated language: the thing we build

Our own work sits at that junction. A situated language layer is a model that has been placed somewhere: it knows a particular community’s vocabulary, its history and its obligations, and it runs on that community’s own infrastructure rather than answering from somebody else’s data centre. Not a general assistant with a local accent — a smaller model that is accountable to a specific group of people.

Placing the model is the easy half. The harder half is that the rules a community sets have to hold at every layer of the stack above and below it, or they are decoration. Almost everything published under the heading of AI values is a document: a policy, a charter, a paragraph in a system prompt asking a model to behave. A model can be talked out of a paragraph. It cannot be talked out of a condition in the code.

So the same rule substrate runs through the whole of what we deploy, and it bites in three different places.

  • While the software is being written. The AI agents that help build this platform work under hooks that refuse actions rather than advise against them. Material classified as culturally sensitive cannot be altered by an agent at all without a single-use authorisation that only a person can issue — and that authorisation deliberately cannot be granted for a whole session, only one action at a time.
  • When it ships. A deployment is refused, not warned about, if a page carries prohibited terminology, if long-form writing has not been through its editorial pass, if translations are incomplete, or if a check finds internal material reachable from a public response.
  • When it runs. The deliberative tool will not average participants into a number. Where a summary cannot be written without losing a disagreement, it returns a refusal instead of a summary. That is a post-condition in the code, so it holds whether or not anyone is watching, and it holds against us as much as anyone.

None of that is remarkable engineering. What is unusual is where the rules sit: not in a document describing intended behaviour, but in the layer that decides whether an action completes. The point of building it this way is that our own good intentions are not load bearing — and neither is our continued existence.

Set out properly: Values That Never Say No 7 min · Governance Architecture 5 min · A Room Built for Disagreement 6 min · Don’t Trust Us — Check the Working 6 min

Sovereignty, in four plain parts

The word gets used loosely. Underneath it there are four separate questions, and they have different answers.

  • Sovereign data — whose information it is, who may hold it, and under whose law it sits when it is at rest.
  • Sovereign records — whether the account of what happened belongs to the people it concerns, or to the vendor whose software recorded it.
  • Sovereign databases — whether one body’s material is genuinely separated from another’s, in the machine rather than in the terms of service.
  • Sealed records and timestamps — whether a claim about when something existed can be checked years later by a stranger, without trusting anyone who holds it.

The last of those is the one that survives when the others fail, and it is the subject of the longest piece on this site.

Where each of these is set out properly

Three routes onward

Pick by what you are interested in rather than by what you do. Each route names a short form — the first two steps — if that is all the time you have.

If you have a decision in front of you rather than a question, there is a fourth way out: Which kind of AI suits the job? — six questions about your situation, and a prompt you can put to whatever you are considering. It takes about three minutes and needs no account.

How it works, and why it can be confidently wrong

Take this if you keep meeting claims about AI that you cannot judge.

Short form 29 min · everything 46 min

Who decides what AI becomes

Take this if you write or speak about AI — a column, a briefing, a speech.

Short form 26 min · everything 78 min

Deciding whether your organisation uses it

Take this if you answer to a board, a committee, or a community.

Short form 46 min · everything 65 min + course

Writing about AI? Routes one and two together come to about an hour of core reading, and everything here may be quoted or republished with attribution.

How it works, and why it can be confidently wrong

Short form: steps 1 and 2.

1
Five things, above

Where fluency comes from, and why it is not accuracy.

6 min
2
What Is AI, Really?

Written with community organisations in mind; the first three sections are for any reader. On mysovereignty.digital.

23 min
3
When Your AI Assistant Nearly Destroys What It Was Hired to Fix

A documented near-miss, and the habit of over-trust that produced it.

11 min
+
Don't Trust Us — Check the Working

Optional. How to audit a claim of this kind, including ours.

6 min

Who decides what AI becomes

Short form: steps 1 and 2.

1
A Smaller Room Than You Think

How few people are actually setting the direction, and how it came to be that way. On mysovereignty.digital.

20 min
2
Someone Else's Switch

What it means to depend on infrastructure you do not control.

6 min
3
In Our Own Hands: New Zealand still has time on AI

The domestic position, and what is still open.

5 min
+
The India agreement, and the wrong argument about it

Optional. A live case: the objection most people make is the wrong one.

9 min
+
AI Policy in China

Optional. The same problem answered by decree instead of argument.

5 min
What Survives When the Secret Doesn't

The long version of our own argument. Carries a sealed record you can check.

33 min

Deciding whether your organisation uses it

Short form: steps 1 and 2.

1
What Is AI, Really?

On mysovereignty.digital.

23 min
2
Governing AI in Community and Not-for-Profit Contexts

What the duties actually are when you answer to someone.

23 min
3
Models of AI Governance for Communities

The arrangements available, and what each costs you.

19 min
4
The governance course

Self-paced, if you need to take a decision rather than form a view.

self-paced
Village AI as a Situated Language Layer

Optional coda: what an alternative looks like in production. Also published in te reo Māori — that translation is provisional and awaiting review.

40 min

Quoting and republishing

Everything linked above is published under CC BY 4.0. Quote it, republish it, translate it, build on it — with attribution. The urls are stable and each piece carries its date.

Two of the pieces carry a sealed record: the text is hashed, signed under a key we hold ourselves, and stamped with a date by an outside authority with no stake in the outcome. You can confirm the text has not changed since that date without asking us for anything.

The sealed pieces are What Survives When the Secret Doesn't and What it costs. Each shows its mark at the foot of the page, with the reference you would use to check it.

Afterwards

This guide is a starting order, not a syllabus. If it turns out to be useful, three places carry it forward.

  • Ask the Glossary — the button at the corner of every page. If a term in any of this is unfamiliar, ask it there and you will get a plain definition without leaving what you are reading. 316 entries, English and te reo Māori. It is quicker than asking us, and it works at midnight.
  • Field Notes — shorter pieces on what is happening as it happens.
  • What's New — everything recently published, in order.
  • Media enquiries — if the Glossary has not answered it and you are writing something, ask us directly.

For the research itself — papers, threat models, open questions — the guide to the research sets out three routes into it.

Where this page relies on work that is not ours — world models, embodied AI, event sensors, diffusion models, Sensorium — every source is listed at Sources for the reading guide, marked according to whether it is the party themselves, peer literature, or reporting.