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How AI chatbots work: from your question to the answer

Updated 27 Oct 2026 · Reviewed every quarter

ChatGPT, Claude, Gemini and other AI chatbots all work in the same basic way. They don't look up answers or think like people: they predict the next word, very well, over and over. Here's what happens between pressing Enter and seeing the answer, how they learned to do it, and the myths worth dropping.

The journey of one question

Follow "What is the capital of Australia?" from your keyboard to the answer. It takes a second or two.

  1. Any AI chatbotWhat is the capitalof Australia?+ the chat so far

    1 You ask a question

    You type into ChatGPT, Claude, Gemini or any other chatbot. Behind the scenes, your message is added to the whole conversation so far, plus hidden instructions from the company that runs it.

    What is a prompt in AI? →

  2. WhatisthecapitalofAustralia?What is the capital of Australia?7 tokens

    2 It splits your words into tokens

    The model doesn't read letters or whole words. It reads tokens: common words, parts of words and punctuation. In English, 100 tokens are roughly 75 words.

    What is a token in AI? →

  3. capitalAustralia?Similar meanings, similar numbers

    3 Each token becomes a list of numbers

    Every token is turned into a long list of numbers, an embedding, that captures its meaning. Words with similar meanings get similar numbers.

    What is an embedding in AI? →

  4. WhatisthecapitalofAustralia?strong linkThicker line = more attention

    4 The tokens "pay attention" to each other

    Layer after layer, each token looks at all the others to work out what they mean together: "capital" is about "Australia", not about money. This is the attention step inside the transformer.

    What is attention in AI? →

  5. …the capital of Australia is?Canberra92%Sydney6%Melbourne1%a1%

    5 It predicts the next token

    At the end, the model gives a score to every possible next token and picks one, usually one of the most likely. That is all a language model ever does: predict what comes next.

    What is a large language model (LLM)? →

  6. The↓ + next tokenThe capital↓ + next tokenThe capital of Australia↓ + next tokenThe capital of Australia is Canberra.

    6 Then it does it again, and again

    The chosen token is added to the text, and the whole process runs again for the next one, until the answer is complete. That is why answers appear word by word on your screen.

    What is inference in AI? →

The token split and percentages here are illustrations; every model splits text and scores words a little differently. The "100 tokens ≈ 75 words" rule of thumb is OpenAI's (OpenAI tokenizer).

Be the model: pick the next word

A model doesn't always pick the single most likely word; a setting called temperature controls how adventurous it is. Move the slider and press the button to see why the same question can get different answers.

Once upon a time, there was a …

  • little34%
  • young22%
  • dragon14%
  • king11%
  • girl9%
  • robot6%
  • lighthouse4%

Made-up probabilities for illustration. Real models choose from tens of thousands of possible tokens.

How it learned to do that

A chatbot is built in three stages. The first gives it knowledge; the other two turn it into a helpful assistant.

  1. Books, web, codeThe cat sat on themat← guess, check,adjust× trillions of times

    Stage 1

    Pre-training

    Read almost everything

    The model reads a huge amount of text (books, websites, code) and practises one game trillions of times: guess the next word. This is where its knowledge comes from, and most of the cost.

    More on Pre-training →
  2. EXAMPLE CONVERSATIONHow do I boil an egg?Put it in boiling water for7 minutes for a firm yolk…Written by people

    Stage 2

    Fine-tuning

    Learn to be an assistant

    People write example conversations showing how a helpful assistant answers. The model is trained on these so it answers questions instead of just continuing text.

    More on Fine-tuning →
  3. Answer AAnswer BPeople rank the answers

    Stage 3

    RLHF

    Learn what people prefer

    The model writes several answers; people rank them. It learns to give the kind of answers people rate highly: clear, helpful and safe.

    More on RLHF →

Newer reasoning models add one more trick: they are trained to "think" through a problem step by step before answering. And many chatbots can now use tools, such as web search, so they can look things up instead of answering from memory.

Five myths about AI chatbots

  • Myth: It looks the answer up

    On its own, it writes from patterns learned in training, not from a database. Some chatbots can search the web or your files first and then show their sources: that is called RAG. RAG explained →

  • Myth: It knows today's news

    Its knowledge stops at the date its training data was collected, its "knowledge cutoff". Anything newer it only knows if it searches the web.

  • Myth: It reads words letter by letter, like you

    It sees tokens, not letters. That is partly why chatbots famously struggled to count the r's in "strawberry". Source: techcrunch.com

  • Myth: It remembers everything you have ever told it

    Each reply is worked out from the current conversation, which is sent to the model again every time, up to its context window limit. Some apps offer an optional memory feature that saves notes about you. Context window →

  • Myth: If it sounds sure, it's right

    It predicts text that sounds likely, which is not the same as checking facts. Fluent, confident and wrong is exactly what a hallucination looks like. Hallucination →

Go deeper: try the Tiktokenizer and Transformer Explainer in our AI Playground, read Stephen Wolfram's What Is ChatGPT Doing, or follow level 2 of the Learn AI path.

How we put this guide together

The steps follow how today’s large language models are built, as described in the research behind them (including the 2017 transformer paper) and by the companies that make them. The token rule of thumb comes from OpenAI’s tokenizer page, and OpenAI has said ChatGPT was trained with RLHF. The token split, percentages and “be the model” demo are simplified illustrations: real models choose from tens of thousands of possible tokens. We review this page every quarter. Spotted a mistake? Tell us.

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