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AIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

16 January 2025

Latent Diffusion Models (Glossary)

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Latent diffusion models are a term used in the fields of artificial intelligence, digital transformation and big data. They describe a special method of how modern computer programmes can generate and process images or other data.

Imagine you want to turn a simple sketch into a photorealistic image. Latent diffusion models use large amounts of data to learn what real images look like. They "diffuse" - i.e. distribute - noise (disturbances) over the image and learn step by step how to recover the perfect image from the noise. The special thing about this is that they carry out this process in a so-called "latent space" - this is like a kind of intermediate world in which only the most important information about the image is summarised.

An illustrative example: modern AI image generators such as Midjourney or Stable Diffusion use latent diffusion models to create impressive graphics from simple text input. This allows companies to develop advertising material or design ideas quickly and cost-effectively without having to hire a photographer or designer. Latent Diffusion Models make many creative processes in the digital world easier, faster and more efficient.

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