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
A C D E F H K L M N O P R S T V W
A
AI copilot · Automatic transcription
C
Chatbot · Company AI policy (governance) · Conversational AI · custom GPT
D
Data extraction from documents (IDP)
E
F
H
Hallucination · High-risk AI system · Human in the loop
K
L
M
MCP (Model Context Protocol) · Multi-agent system
N
O
P
R
RAG · RPA (robotic process automation)
S
Semantic search · System prompt
T
V
W
Webhook · 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 an AI agent is, and how it differs from a chatbot · What are the guardrails of an AI agent? · What is AI model distillation? · What is an LLM? The language model behind ChatGPT, Claude and Gemini · What is generative AI: text, images and video on request · What's an LLM? The model behind ChatGPT, Claude and Gemini