How AI Thinks Step by Step Like Humans and How You Can Use It Every Day

“GPT solved the problem wrong—until I told it to think.”

That simple sentence is reshaping what we thought we knew about artificial intelligence. By asking AI to “think step by step,” researchers have unlocked a surprising form of reasoning with the potential to transform how we approach everything from school math to storytelling to everyday decision-making.

This technique, called Chain-of-Thought (CoT) prompting, is more than just a clever hack. It is a major breakthrough in how we communicate with machines.

What Is Chain-of-Thought Prompting?

Chain-of-thought prompting works by asking the AI to explain its steps instead of giving a final answer immediately. It turns the AI into a kind of problem solver who shows its thinking.

In a study by Google Research, scientists used this technique to help large language models generate a clear sequence of reasoning. These weren’t just better answers—they were explanations that people could follow and verify.

This prompting method unlocks skills that include solving math problems, handling logic puzzles, and writing coherent stories. And the same simple pattern applies: break the problem down, and reason through it piece by piece.

Chain-of-Thought in Real Life: How AI Mirrors Human Thinking

To understand how powerful this is, let’s look at three everyday situations where humans already use step-by-step thinking. You’ll see how AI now does the same if it is prompted correctly.

Math : “Show Your Work” Like in School

Imagine you’re solving this:

Q: What is 17 × 23?

If you guess “321” without working it out, you might be wrong. But if you break it into smaller steps: You’ll land on the correct answer.

• 17 × 20 = 340
• 17 × 3 = 51
• 340 + 51 = 391

In the Google study, this change in prompting helped the model PaLM 540B jump from 56.6% to 74.6% accuracy on math word problems. This was done using zero-shot examples with no fine-tuning, just better prompts.

Storytelling : Outline Before You Write

Most writers don’t begin by typing the ending. They plan:

• Who’s the main character?
• What’s the conflict?
• How does the plot unfold?

CoT prompting helps AI structure stories just like a writer would—leading to coherent, creative, and emotionally resonant narratives.

GPT Conversation — Story Planning:

User: Write a story about a lonely robot who finds friendship.
GPT (No CoT): Once there was a robot. It found a friend. The end.

User: Think step by step: define setting, character, problem, and resolution.
GPT (With CoT):

• Setting: A robot lives alone in a scrapyard.
• Character: Its name is Rovo, and it scans junk daily.
• Problem: Rovo feels purposeless and longs for connection.
• Resolution: One day, it finds a damaged drone and repairs it. They become companions.

Researchers found that this type of prompting helps language models build coherent timelines, consistent motivations, and better narrative logic over long passages.

Decision-Making : Planning a Weekend Trip

Now imagine you’re planning what to do this Saturday. You could just say “Let’s go out,” but that often leads to wasted time. A better approach is to ask yourself:

• What’s the weather?
• Who’s free?
• What’s the budget?
• How far can we go?

You naturally break it down. CoT prompting helps AI do the same.

GPT Conversation — Trip Planning:

User: What should I do this Saturday?
GPT (No CoT): Go to the beach. (Random and unhelpful.)

User: Think step by step: check weather, location, budget, and company.
GPT (With CoT):

• Weather: It’s forecasted to rain.
• Location: Museums are open nearby.
• Budget: You have $30.
• Company: Your friend Alex is free.

Suggestion: Visit the science museum with Alex, then grab lunch nearby.

This shows how CoT prompting turns language models into planners and decision-makers that can work through constraints and priorities.

Public Value: Why This Matters Beyond Labs

Chain-of-thought prompting isn’t just a boost for model performance. It’s becoming valuable in daily life.

1.Education: From Tutors to Study Buddies

Students can ask AI to “explain step by step.” This turns it into a tutor that doesn’t just answer but teaches.

In math education, the effect is clear. On GSM8K, a dataset of grade-school math questions, CoT prompting helped PaLM 540B reach 74.6% accuracy. That even beat some models trained specifically for math.

2. Creative Writing and Storytelling

When writing stories, CoT helps AI structure narratives logically. Instead of jumbled plots, the AI can now think like an author: “First, introduce characters. Then, build conflict. Finally, resolve.”

Researchers showed CoT enables structured language modeling, helping the AI maintain timelines, motivation, and narrative consistency over longer texts.

3. Commonsense and Logical Thinking

Chain-of-thought also helps with symbolic reasoning and logic. In the study, PaLM beat the human average in sports reasoning questions—95.4% versus 84%.

The AI used CoT to track changing mental states, solve multi-step puzzles, and understand logical implications that previously confused models.

4. Transparency in AI Systems

n fields like medicine or law, it’s not enough for AI to be right. We need to know why it reached a decision.

CoT prompting acts like an audit trail. It shows the model’s reasoning so that people can trust, verify, or challenge its logic.

Why Bigger Models Suddenly “Get It”

One surprising discovery in the paper is that CoT prompting only starts to work in very large models.

Small models like GPT-2 or 13B versions struggle. They often produce poor reasoning, even with CoT examples.

But something changes at scale. In models like GPT-3 (175B) and PaLM 540B, CoT causes reasoning ability to spike. This jump is not gradual—it’s an emergent behavior.

The authors noted that while standard prompting improved slowly as models got bigger, chain-of-thought prompting showed a dramatic rise in performance once the model crossed a certain size.

This shows that large models aren’t just better at generating fluent text. They are also better at thinking in steps—when we ask them to.

Try It Yourself

Want to try chain-of-thought prompting at home? Next time you use ChatGPT or a similar tool, ask:

• “Think step by step.”
• “Explain before giving the answer.”
• “Walk me through your reasoning.”

You’ll see fewer hallucinations, better answers—and maybe even flashes of insight.

A More Human Way to Speak to AI

Chain-of-thought prompting doesn’t make AI conscious. But it helps it behave more like a partner who thinks with you, not just at you.

It invites a new kind of collaboration between humans and machines—one where conversation becomes a shared process of reasoning.

That’s not just a smarter tool. It’s a smarter way to ask.

Reference: “Chain-of-Thought Prompting Elicits Reasoning in Large Language Models” by Jason Wei, Xuezhi Wang, Dale Schuurmans, Maarten Bosma, Brian Ichter, Fei Xia, Ed H. Chi, Quoc V. Le, and Denny Zhou, 28 March 2025, arXiv preprint.

DOI: arXiv:2201.11903v6