AI Glossary
The Language
of Business AI
AI comes with a lot of jargon. Here are clear, plain-language definitions of the terms that matter most for decision-makers.
- Artificial Intelligence(AI)
- Software that performs tasks normally requiring human intelligence — understanding language, recognizing patterns, generating content, and making decisions.
- Generative AI(Gen AI)
- AI that creates new content — text, images, audio, code — rather than only classifying or predicting.
- Machine Learning(ML)
- A branch of AI in which systems learn patterns from data rather than following explicitly written rules.
- Large Language Model(LLM)
- A model trained on vast text that generates human-like language and underpins assistants like ChatGPT and Claude.
- AI Agent
- An AI system that can take actions and complete multi-step tasks toward a goal, not just answer a single question.
- Predictive AI
- AI focused on forecasting and classification — for example, lead scoring, churn prediction, or anomaly detection.
- Prompt
- The instruction or question given to a generative AI model. Prompt design strongly affects output quality.
- Fine-tuning
- Adapting a pre-trained model on your own data to specialize its behavior for a particular task or domain.
- Retrieval-Augmented Generation(RAG)
- Supplying a model with relevant documents at query time so its answers are grounded in your trusted, current information.
- Workflow Automation
- Using software — increasingly AI — to execute multi-step business processes with minimal manual effort.
- AI Governance
- The policies, guardrails, and oversight that keep AI use safe, accurate, compliant, and aligned with the business.
- Hallucination
- When a generative model produces confident but false or unsupported output. Grounding and human review reduce the risk.
- AI Readiness
- How prepared an organization's data, systems, skills, and culture are to adopt AI and capture value from it.
Ready to apply these? Start with What Is AI for Business? or the adoption roadmap.
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