How AI Thinks

An 80-Page Shortcut to Understanding AI Better Than the Guy Pitching It to You

Here’s the situation as plainly as I can put it: AI is moving faster than the average person’s ability to think clearly about it.

Rather than a clear understanding, you're bombarded with hype, doom, and "prompt hacks."

Instead, you need a plain-language mental model that lets you use AI more effectively, build better AI-driven products, and improve personal and organizational efficiency. You should be able to walk into a room full of confident people, spot who’s bluffing, and know you’re not one of them.

That’s what this book gives you. And no, you don’t need math or a CS degree to get there.

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Coming January 2026

The Problem with AI

Like any new technology, AI (in particular, LLMs) is also riddled with too much hype and too little information. On social media, you often see polarizing opinions: one claiming that Skynet is here, while another demonstrating how AI is still as dumb as bricks.

Instead of gaining understanding, you're forced to be a spectator to a debate. Neither side makes a lot of sense, while just being concerned with proving the other wrong.

Moreover, most of the information on AI are highly mathematical in nature. They're not readily interpretable without the proper background knowledge, and they're far more nuanced than the gloom and doom picture painted every day.

Occam's razor says that all things being equal, the solution that requires the fewest assumptions is the best. However, most do not notice the phrase "all things being equal." It's only when there are two equally valid options wherein you then lean toward the simpler one. But most just choose the easy one that doesn't require much thinking, and assume that it is also simple.

Well, easy and simple are not the same thing.

And the easy version, one that's easily understandable, is also invariably wrong. This surface-level study is the reason why most predictions about AI are incorrect. A faulty mental model always leads to faulty predictions, some of which are very extreme rather than being nuanced.

The real problem with AI, then, is not the lack of opinions or predictions. It's the lack of a mental model that gives everyone enough understanding to make up their own minds. And if you don't make up your own mind, someone else will.

How This Book Helps

The best way to understand the implications of AI is to understand some of how LLMs actually work. Once you know that, you will understand why they're good at certain things, and not so good in others. Moreover, you'll also be able to validate the claims made in social media, or by CEOs, influencers, or even vendors.

Of course, diving into the computer science of it all is neither practical for everyone, nor even necessary. You don't have to become an AI-researcher to understand the fundamentals of LLMs.

The basics of LLMs are based on simple ideas that work surprisingly well.

However, one has to be very careful to neither oversimplify nor add needless details. And I've tried my best to do exactly that.

In this book, the mental model not just explains the basic principles of LLMs, but also how it extrapolates to creativity, hallucination, and even reasoning. Thus, it gives a holistic view of all the different behaviors which you routinely observe with language models.

That being said, this book is aimed at everyday users of LLMs, engineers, product managers, technology leaders, and anyone who uses AI on a daily basis. It is not meant for researchers who already have a firm grasp of the math behind LLMs. The book does take liberties at times and simplifies certain concepts, but it tries to be as precise as possible for our purposes.

What You'll Gain

Deeper Understanding

Move beyond surface-level knowledge to truly understand how LLMs process information, reason, and generate responses.

Better Decision-Making

Make informed choices about which AI tools to adopt, when to trust their outputs, and how to integrate them into your workflow effectively.

Increased Productivity

Understand the principles behind writing better prompts, getting more accurate results, and reducing time wasted on trial-and-error approaches to using AI tools.

Career Resilience

Future-proof your career by developing skills that complement AI rather than compete with it, making yourself harder to replace. Detach yourself from all the doomsday debates.

Competitive Advantage

Stand out from peers who only know how to use AI superficially. Become the person others turn to for guidance on AI matters. Because just like regular software, AI also takes skill to use and integrate.

Leadership Credibility

Lead AI initiatives with confidence, evaluate vendor claims critically, and guide your team through the AI transformation. A team based on strong fundamentals will have to rely less on temporary gimmicks.

What's Inside

A chapter-by-chapter breakdown of what you'll learn.

CHAPTER 1

Cutting Through the AI Jargon

Go beyond the most abused buzzwords and understand what “learning,” “intelligence,” and “reasoning” really mean in the context of LLMs and AI. This sets the foundation for everything that follows.

CHAPTER 2

A Crash Course on How LLMs Work

The simple but astonishing principle behind modern AI, and shows how that alone unlocks capabilities like coding, email writing, and problem-solving.

CHAPTER 3

The Word is a Lie

Understand the differences between words and tokens, and what the LLM really sees when it looks at "words." Also learn how LLMs handle novel words.

CHAPTER 4

How LLMs Are Trained

Peek inside the training process to understand how massive datasets come together to help the LLM learn language patterns.

CHAPTER 5

Why LLMs Don’t Give the Same Answer Twice

LLMs don't just vary the style of their answers, but also the answers themselves. Understand why this happens, and later this forms the basis for learning about creativity and hallucinations.

CHAPTER 6

The Two Sides: Creativity & Hallucination

Learn the relationship between how LLMs generate answers, creativity, and hallucination. Also understand why the line between creativity and hallucination is not a sharp one.

CHAPTER 7

How Reasoning Works in LLMs

Reasoning has become a new thing in LLMs. Understand how our mental model also extends to how LLMs reason, making it extremely easy to understand.

A Holistic Learning Experience

The book isn't a boring wall of text. Rather, it contains pertinent illustrations, examples, and scenarios that help you grasp the concept and its implications in the real world. You don't merely learn theory that you never get to apply.

The book is designed for busy professionals who want to learn efficiently. As much as possible, there are no words just for the sake of it.

Each chapter builds upon the previous seamlessly. Thus, you don't have to learn a "new mental model" each time you want to understand a new concept about LLMs.

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  • Format of the book is a digital-only PDF.
  • PDF is DRM-free.
  • Approximately 80 total pages.

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  • Volume discounts.
  • Format of the book is a digital-only PDF.
  • PDF is DRM-free.
  • Approximately 80 total pages.
Author

About the Author

I’m Raahul, and I specialize in designing and architecting complex AI systems. As of early 2026, I lead AI for a major SaaS product, setting the vision, inventing frameworks, and packaging them into a wonderful product experience.

I’ve been programming since the age of 11 (almost 25 years as of 2025). I’m an undergraduate in Electronics & Telecommunications Engineering, and have a Master’s in Computer Science from GeorgiaTech, specializing in Machine Learning. I love learning from first principles rather than memorizing or speculating.

Over the years, I’ve architected complex high-scale systems, led big teams, designed differentiators, and have seen how business & technology intertwine behind closed room meetings with prominent leaders.

In writing this book, I’ve tried to combine the knowledge of AI, with my approach of thinking from first principles, and put them in the context of the business of technology so that what I cover is both clear and useful.