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"We defended our colors far beyond the pitch, and shared unforgettable moments with the national team, alongside our families and with the unconditional support of every Argentine. It will always be an immense honor to represent you.
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One of the most common questions in AI:
“How does generative AI work?”
When you are immersed in it, you develop an intuition. Explaining it clearly—without losing people halfway through—is much harder.
In architecture and design, image generation tools such as Midjourney, Stable Diffusion, Nano Banana and Adobe Firefly are now part of everyday workflows. With AI built into tools like Excel, WhatsApp and Outlook, this is no longer niche—it is mainstream.
So let’s break it down.
How does it work?
Many of these tools rely on a type of AI called latent diffusion models (LDMs).
This may sound technical, but it does not need to be.
Let’s break it down step by step.
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L for latent
The key difference between these models and earlier approaches is that they do not work directly on full images.
Instead, they operate in what is called latent space.
Think of it like this:
Imagine you have hundreds of photos of your pet.
Each image is highly detailed—every pixel adds complexity. In technical terms, this is a high-dimensional space.
Now imagine compressing these images into a simplified “map” that still captures the important features:
shape, colour, texture, patterns
This simplified map is latent space.
Instead of working with millions of pixels, the AI works with a compressed representation of meaning.
Your words are handled separately.
The prompt “small fluffy brown dog with big eyes” gets translated into something the model can match against—the idea, not the pixels—and that steers what it builds in latent space.
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D for diffusion
This is where the process becomes more intuitive.
Diffusion is the process of adding and removing noise.
A useful analogy:
If you remember tuning an old TV signal, you would see static first—then the image would gradually come into focus.
Diffusion models work in reverse.
Step 1: Start with noise
The model begins with what looks like pure randomness—visual static.
Step 2: Gradual refinement
Step by step, the AI removes noise and reshapes the image based on your prompt.
Step 3: Image emerges
After many iterations, the noise resolves into a coherent image.
Important clarification
The model is not “finding” an image hidden in the noise.
It constructs the image step by step using what it learned during training.
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M for models
A model is simply:
A system trained to recognise patterns and generate outputs.
For image generation, models train on:
large datasets of images
paired text descriptions
Over time, the AI learns relationships such as:
what a “puppy” looks like
what “wearing a hat” means
how styles and compositions work
So when you type:
“a puppy wearing a hat”
…it generates a new image based on learned patterns. It generally does not copy—it recombines.
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What's that noise?
Earlier, we noted that the process starts with noise.
This noise really is random—sampled fresh each time.
It is simply the blank canvas the model starts from, and all the structure appears later, as the model reshapes that randomness step by step.
From there, the model performs reverse diffusion:
interprets the prompt
identifies patterns
progressively reshapes the noise
Until:
shapes emerge
colours align
textures form
—and the final image appears.
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Why do results change each time?
Even with the same prompt, results usually differ.
Each generation starts from a different seed.
A seed is a number that determines the initial noise pattern.
same prompt + same seed → identical result
same prompt + different seed → different result
Think of it as starting from a different sketch each time.
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Final thought
That’s it — that’s the noise with LDMs, and how your favourite generative AI tools create magic from chaos. The next time someone asks you about AI image generation, there will be no confusion about diffusion!
The next time someone asks how AI image generation works, you can explain it clearly—without the jargon.
But wait, there’s more!
I’ve created a one-page interactive cheat sheet explaining how diffusion works in the comments below.
New block in Notion: HTML.
Build interactive HTML right on your Notion page. Ask AI to turn your content into interactive explainers, prototypes, or diagrams.
Share with your team to use and tinker together.