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Part 3 — Era 2: Learning from examples (1990s–2000s)

This part contains the single most important chapter in the guide for understanding LLMs: Chapter 12, on n-gram models. An LLM is a direct descendant of what you'll build there.

Chapter 8 — The big switch: from rules to examples

In one sentence

Stop writing the rules; collect examples of the right answer and let an optimisation procedure find the rules for you.

The shift in three columns

Rule era Statistics era
Human provides the knowledge the examples and the features
Machine provides application of rules the weights (how much each feature matters)
Answers are certain (true/false) probable ("87% spam")
Unknown input fails degrades gracefully
Adding knowledge write another rule collect more data
Explaining a decision show the rule chain show which features had the biggest weights

Why this became possible in the 1990s

Three things arrived at once: digital text (email, the web, digitised corpora), cheap storage, and enough CPU to run optimisation over thousands of examples. Statistical methods had existed for decades; the data hadn't.

The recipe you'll follow for the rest of Part 3

1. Get examples with answers        (data + labels)
2. Turn each example into numbers   (features)
3. Pick a model shape with knobs    (e.g. weighted sum -> probability)
4. Pick a loss                      (how wrong is a prediction?)
5. Turn the knobs to reduce loss    (training)
6. Test on examples it never saw    (evaluation)

Memorise these six steps. Every model in this guide — including a $100M LLM — follows exactly them.

Check yourself

  1. What does the human still provide in the statistics era?
  2. Why are probabilistic answers an advantage, not a weakness?

Further reading

  • Course: Google ML Crash Course — "Descending into ML".
  • Video: StatQuest, "Machine Learning Fundamentals: The Confusion Matrix" (you'll need it in Chapter 13).

Generated from real-life-ai-example-v1.md · 8 Oct 2026 16:36