So I am having trouble working out what, specifically is the difference between these two.
As I understand it, a snapshot is simply a backup of the disk drive, where
From the definition provided by AWS it clarifies the difference - An Amazon Machine Image (AMI) is a template that contains a software configuration (for example, an operating system, an application server, and applications). From an AMI, you launch an instance, which is a copy of the AMI running as a virtual server in the cloud. Whereas for Snapshots You can back up the data on your EBS volumes to Amazon S3 by taking point-in-time snapshots. Snapshots are incremental backups, which means that only the blocks on the device that have changed after your most recent snapshot are saved. When you delete a snapshot, only the data exclusive to that snapshot is removed.