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Glossary

The words of AI, explained to people who are not technical.

People who sell AI to a business often speak a language of their own: tokens, agents, RAG, fine-tuning, hallucinations. This glossary translates those words for the people who have to decide, not for those who write the code.

Each entry starts with a one-sentence definition, then shows the word at work in a small or medium-sized business and ends with the mistakes we see most often when a company meets it for the first time. The entries are grouped by topic, and below you will also find all of them in alphabetical order. They point to one another: if a word leads you to another, follow the link.

When an entry quotes a figure, the source sits next to it. If a term someone used in a meeting is missing and you did not follow, write to us: it is the best way for us to know which entry to add.

By topic

AI basics

Hallucination, Prompt… 2 pages

Models and costs

Token, What a frontier model is and when you don't need to pay for one, What a frontier model is, and when it's not worth paying, What is AI model distillation?… 6 pages

Agents and automation

AI copilot, Automatic transcription, Data extraction from documents (IDP), Function calling… 14 pages

Chatbots and assistants

Chatbot, Conversational AI, custom GPT, Embedding… 10 pages

Content made with AI

What is generative AI: text, images and video on request… 1 page

Local AI and privacy

Local AI… 1 page

Rules and risks

Company AI policy (governance), High-risk AI system… 2 pages

All 36 entries from A to Z

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