What is the real difference between an LLM, Generative AI, an AI Agent, and Agentic AI?
In this video, we will understand all four concepts using one practical developer example:
Building a complete e-commerce website with a frontend, backend, database, REST APIs, authentication, admin panel, testing, debugging, and Hostinger VPS deployment—with the help of Claude Code or OpenAI Codex.
Instead of learning complicated theoretical definitions, we will follow one complete journey from idea to production.
You will understand:
✅ What an LLM actually does ✅ How an LLM generates answers token by token ✅ Why Generative AI creates content but may not perform the action ✅ How AI agents use tools, terminals, files, browsers, and MCP servers ✅ What MCP, or Model Context Protocol, means ✅ How Mermaid MCP can help generate and render diagrams ✅ How coding agents can create files and run commands ✅ How AI can test an application, identify errors, fix code, and test again ✅ What makes an AI workflow “agentic” ✅ Why agentic behaviour is a level of autonomy—not necessarily a separate product ✅ How Claude Code or Codex can prepare and deploy an application using Hostinger tools ✅ Why critical production actions should still require human approval
The easiest way to remember the difference:
🧠 LLM provides the intelligence ✍️ Generative AI creates 🛠️ AI agents act 🔁 Agentic systems plan, act, observe, and adapt
Or even more simply:
Generative AI = The Talker AI Agent = The Worker Agentic AI = The Outcome Owner
The same tool can demonstrate all these capabilities.
For example:
When Claude Code generates a React component, we are using its generative capability.
When it adds that component to the actual project and runs commands, it is acting as an AI agent.
When it plans an entire feature, implements it, runs tests, examines failures, fixes the code, and continues toward the final goal, it demonstrates agentic behaviour.
This video is especially useful for developers who want to understand how modern AI coding tools such as Claude Code and OpenAI Codex actually work.
Want me to build the complete e-commerce application—from a single prompt to a live Hostinger deployment?
Comment “BUILD IT” below.
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TIMELINE 00:00 Introduction to Artificial Intelligence 00:40 LLM vs Generative AI vs AI Agent vs Agentic AI 00:55 What Is an LLM? 01:26 How Does an LLM Generate Output? 02:55 Our E-commerce Website Mission 03:25 Generative AI: Planning the Project 05:55 AI Agent: The Doer 08:00 AI Agent in Action 09:00 Understanding the AI Agent Loop 09:40 Agentic AI: The Owner
AI Generated·May contain errors
Video Summary
AI Generated
The video explains the differences between LLM, Generative AI, AI Agents, and Agentic AI by demonstrating the creation of a full-stack e-commerce website without writing any code. It uses a practical mission—planning, designing, coding, testing, and deploying a site—to illustrate how these four concepts evolve from a simple \"brain\" to an autonomous system.
What if I told you that I created an e-commerce website?
in which we have front-end, back-end, database, API, admin panel
We tested it, fixed the bugs, and posted it on Hostinger BPS.
without me touching a single line of code.
Yes, guys, not a template, not a website builder
actual production code written, tested, and deployed by AI.
Yes, guys, with the help of Artificial Intelligence AI.
Today, in this single journey, I will tell you about four terms.
which people confuse or are not familiar with.
That's your LLM, Generative AI, AI Agent, and Agentic AI.
So, I will explain these four terms through a single mission.
What are the differences between them?
By the end of this video, I guarantee you
that you will never be confused about these four terms.
akashic records, the mind.
First of all, before anything else, we will first establish our foundation.
And that is LLM, Large Language Model.
Before understanding this, I would like to share with you
A mini version example of this.
And that is, whenever you type something on your mobile
Let's say you are sending a message to someone on WhatsApp.
Then you have noticed the suggestion for the next word at the bottom.
Now, the suggestion for the next word is entirely based on
your previous chat history
and also the linguistic patterns that have been taught to them
And it's very limited.
Now, an LLM is that same concept taken to an insane scale.
Here, the LLM is trained on an extremely large collection of
text, code, and other data.
Now, exactly their training sources depend on their models.
and based on all those models, whenever you ask an LLM anything
It will predict the next most suitable token.
Here, I said "token" and not "word." Why?
Because this token could be a full word, a complete word
or a part of a word, a character, or even a punctuation mark.
So, basically, it generates a token for you.
then the next token, then the next token
In this way, you get a complete sentence.
You receive a complete answer.
and if you have requested a code
Then that code also generates it for you.
That's it. Added score. This is your LLM.
And all your AI models use LLM as a brain.
I hope you know now.
It's a very powerful next token predictor.
You can call it that.
Part 2. The mission.
Now, guys, let's move on to the mission.
So, what is the mission? Let's see that first.
Build a complete e-commerce website.
Front-end, back-end, database, REST API, admin panel
and host it live on Hostinger BPS
without me writing or touching a single line of code.
To achieve this, I am going to use Cloud Code.
If you have an OpenAI Codex, you can use that as well.
It's the same concept but different tools.
And you will watch this video very carefully.
because as we move forward on our mission
our concepts such as generative AI, AI agents, and agentic AI
will also become clear.
Yes, guys, just one mission.
Today I will clarify your doubts regarding these three terms.
Part 3. Generative AI Deconversation.
Now, guys, step 1. Planning.
When you go to build any project,
Your first step should be planning.
Yes, guys, you have to plan first.
And see what I am going to write for that plan
in our Cloud Code.
I want to build an e-commerce site.
Here are my requirements.
I'm considering this tech stack for the back-end.
I have a VPS hosting.
Help me plan this out.
And that's it.
This prompt, although I gave a very simple prompt,
We could have written it better.
But for example, when I write this prompt to my Cloud Code,
It will ask me in response
Howe payment gateway do you prefer?
How many product categories do you want?
Do you want multi-vendor support for this?
So what's going to happen this way, guys?
It will ask me questions.
I will give my answer.
Sometimes it will ask me questions.
It will answer me.
In this way, we will establish a solid plan.
But there is one thing you must keep in mind.
And that is, during this conversation,
I asked something in the form of text
and in the form of voice,
It answered me in the form of text.
That is, text in, text out.
So what it is doing is
It is generating the content I asked for.
So this is your generative AI.
Yes, here it is not doing any extra work.
Like creating a file,
Opening a terminal and issuing a run command.
It's doing nothing.
Whatever you are asking it,
It is simply providing the answer in the form of text.
And that is generative AI.
You can also understand it in this way.
A brain of an LLM generating content
or output based on your input.
Now, let me tell you an example.
So Chad GPT, your Claude, Gemini,
when they give you simple text
Whatever you ask them, that's it.
This is your generative AI.
And remember that in this variant,
They do not have access to external tools.
or real-world actions.
Just remember this much.
Where they are simply generating
text, image, video, or audio for you.
Whatever you asked them, that's what it is.
This is your generative AI.
Part 4, AI isn't.
Alright, everyone, we've completed our planning.
What is the next step?
Tell me.
If you have completed a good project in college
or in a company,
then the next step is
that now we have to create diagrams.
There can be flow diagrams,
ER diagrams
sequence diagrams
architectural diagrams
So we have to create those.
so that all our entities,
tables of our database
or whatever it is
We find out about it.
Alright.
So we have made a solid plan.
Now see what prompt I will write.
I will say,
This plan is great.
but I want a proper flow diagram
and an ER diagram
for the database
Before we write any code.
Now, this is it.
The moment you write this prompt,
Here is the problem.
And the problem is,
Cloud Port will create a diagram for you.
but in the form of text
which you will have to copy later
and paste it in the plugin
to obtain the actual rendered image.
Now, a pure generative AI
Cannot create a proper diagram
and neither can it create it
and save it in the file.
Here we will need an external tool
with the help of which
Cloud Port can create a diagram for us.
And there will be many such tools,
but the most popular one is
Mermaid MCP
So finally,
in Cloud Port
We will connect our Mermaid plugin.
or MCP.
And that's it.
Now, based on the prompt we gave,
It will create a flowchart.
sequence diagram
ER diagram for you.
But here is one thing
that you must keep in mind.
If you are a generative AI,
like ChatGPT or Cloud,
if you are connecting MCP tools,
and now that AI
is giving you an output
with the help of that tool,
It doesn't make it an agent.
Yes, guys.
We will call it a simple tool.
You have just granted access to a tool.
Used the tool and that's it.
Now, when is it actually called an AI agent?
Actually, this AI agent
is called when
Now you have multiple MCPs.
and you gave the same prompt
that I want a diagram
ER diagram, flow diagram
based on the project
that we have planned.
Then here,
your AI
Your Cloud Port or ChatGPT
generative AI
It will now think.
It will decide.
Based on that,
It will act.
Out of so many MCP,
Which MCP should I choose?
so that I can make this diagram?
So there it will select Mermaid MCP.
So here it is, deciding,
It is acting.
Based on that
It will observe.
Once it has created the diagram,
whatever we were planning
Based on that,
It will observe.
It will check whether it is correct or not.
In case it is not correct,
Then again, it will recreate it.
and then observe.
And now if it sees,
Yes, now it is absolutely correct.
It will render it.
and save it in our file.
Yes, guys.
Here, any AI,
You can finally call it an agent.
when it learns to use loops.
As you can see here,
when it learns to decide
What will be the next step?
then reason
then act,
then observe,
then repeat
and it will keep working
until it reaches the goal
that we gave it.
And that is your AI agent.
LLM brain plus tools
plus a feedback loop.
Yes, guys.
So all this together
makes you an AI agent.
I hope you know now.
Generative AI
was producing normal text for you
and nothing extra.
The AI agent is carrying out the task.
that you are giving.
It's like a skilled worker.
Who is doing the work for you?
Part 5
Agentic AI
the owner
Now guys,
In this mission,
We have almost reached
to the final stage.
And you had to find out
about generative AI
and you also got to know
about AI agent
One thing,
What is an agentic AI?
Now here,
at the end of our mission,
We have come,
So this will also be clear to you.
Now I am going.
Okay, I am handling
Above everything, I give it all to you.
You decide.
Database first
or backend
or frontend.
Build all of it.
When you are done,
write test
and run them.
If the test fails,
Review your own code.
Fix it.
and test again.
And when everything has passed,
I securely connect
Hostinger MCP
using a scope
and revocable
API token
Define what it is
allowed to access
and keep approvals required
for the critical
production actions
Deploy it.
Make it live.
Yes, guys,
Now, after giving this prompt,
We just have to relax.
and sit.
And just keep watching.
We don't have to do
anything extra
Now if you see,
After this prompt,
What will our AI do?
Hey guys,
First of all,
It will think on its own.
That's what can be
The first step.
Most probably,
it will create
your database schema
Then it will build
your API
Then it will go
to the frontend.
Then it will be completed.
backend like this.
After that,
guys,
It will be tested.
It will write.
unit test and
then test.
And let's say,
three errors
Came.
Like your API
Got mismatched
or inventory
Did not update
properly or
Admin URL
Got exposed.
So first of all,
What will it do?
It will read the error.
Now it will try
to fix it.
How can we
Fix it?
And once it
Fixes the code.
then again it
will test.
And this time,
if everything
becomes successful
means all the tests
get past
then it will go
to Hostinger BPS
to deploy it.
And then,
We have already
to our Hostinger BPS.
Again,
with the help
of connector,
That is your MCP.
It will easily
our website
on Hostinger BPS
Yes, guys,
Our mission is complete.
But there is
An important thing
which you have
to pay attention to
And that is
in agentic AI
everything
AI is giving us
A to Z
from start to finish
But it doesn't.
mean that
You just sit.
and relax
and you don't
need to see
It's not like that.
Again,
This is a very
crucial step
And that is
that there will
some parts
some moments
where you have
manually
Give approval
to yourself
For example,
when it comes to
changing the DNA,
or migration
or replacing
live production
or deleting something.
So these are
Such important steps
Where, guys,
You can't blindly
empower
In auto mode.
You have to
Review it manually.
Okay?
And don't worry,
in agentic AI
manually sometimes
in such critical
conditions
giving approval
also comes
in agentic AI
Agentic AI does not
mean that
It's doing
Everything on its own.
Obviously,
It's doing.
But there are
some steps
where it is important
for you to be there
It's important
to give approval
Yes, guys,
This is yours
agentic AI
where if you
notice
the same AI
now we're
looking at
Cloud Code
Cloud Code
normally
if it's just
generating a text
for you
now you'll say,
this Cloud,
simple chat
this is my
generative AI
even ChatGPT.
Then in the same
Cloud
if you give
external tools
access to it,
and draw
an image like
It thought,
which one
Should I
If it's wrong,
how should I
Fix it?
This is yours
agentic AI
skilled worker
One task,
Done.
Now,
the same AI
is also known as
agentic AI
because of
its behavior.
And what
Is that behavior?
That behavior
Is that it?
the same AI
has the power
to plan
the multi-step
tasks
by itself.
For example,
It can plan.
10-12 steps
by itself.
It can also
Do it.
After making it,
It can also decide.
that first
I'll do this.
After that
I'll do this.
And again,
if there are
Some mistakes,
It can correct.
And this
behavior
makes an
AI agent
into a
agentic AI
Yes
guys,
As I told you,
in one mission
and in the same
mission
I'll clear it.
All your doubts.
I hope
your doubt
has been
Because
your Claude
It's simple.
Your Claude
is also known as
generative AI
Your Claude
is also
working as
an AI agent
and also
showing you
the behavior
of an
agentic AI
I hope
now you
Any doubt.
I hope
now finally
LLM,
generative AI
AI agent
and then
agentic AI
the gap
between
differences
is now
Clear.
So,
That's it.
Guys.
That's all for
this video
Please comment
and tell me
whether your
doubt
was cleared
or not.
And please
Like this video.
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Because
in today's
time
these three
terms are
Very important
and everyone
needs to
the differences
between them
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You finally
Got to know.
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in the next
video
Until then,
Thank you so
much
Be careful.