LLM vs Generative AI vs AI Agents vs Agentic AI: Key Differences Explained at BillMart
These 4 AI terms are not the same — and here's why it matters.
LLM ≠ Generative AI
- 🔹 LLMs (Large Language Models) understand and produce human language (e.g., ChatGPT, Claude, LLaMA).
- 🔹 Generative AI goes beyond language — it can create text, images, music, videos, and more.
Generative AI ≠ AI Agents
- 🔹 Generative AI: Produces content like text, images, and code.
- 🔹 AI Agents: Perform actions — book flights, run workflows, file claims — often powered by generative AI.
AI Agents ≠ Agentic AI
- 🔹 AI Agents are reactive — they execute tasks you assign.
- 🔹 Agentic AI is proactive & adaptive — it decides what to do, when, and how, often without needing input.
Why This Distinction Matters
- 🔹 Misusing AI terms = misplaced expectations and wrong investments.
- 🔹 Generative AI ≠ full autonomy.
- 🔹 Agentic AI requires strong safety, ethics, and governance frameworks.
Understanding the difference → Smarter strategy, better outcomes. Let's build responsibly.