AI and automation glossary
The terms business leaders hear most about AI and automation, explained simply. General definitions to help you ask better questions.
A
- Agentic workflow
- A process in which an AI system is given a goal and several steps to carry out, such as researching, drafting and filing, with checks along the way rather than a single answer.
- AI agent
- Software that uses an AI model to decide on and carry out a series of actions toward a goal, such as looking something up, then writing and sending a reply for approval.
- AI governance
- The rules, roles and checks a business sets for how AI is chosen, used and reviewed, including who is responsible and what always needs a person's approval.
- Answer engine optimization (AEO)
- Making a business's information clear, accurate and well structured so AI assistants and answer engines describe it correctly when someone asks.
- API (application programming interface)
- A defined way for one piece of software to ask another for information or to carry out an action, such as a booking tool adding an event to a calendar.
- Artificial intelligence (AI)
- Software that performs tasks that normally need human judgment, such as understanding language, spotting patterns or making recommendations.
- Automation
- Using software to carry out a routine task without someone doing it by hand each time, such as sending a reminder when an invoice is overdue.
B
- Bias
- A pattern in an AI system's output that unfairly favors or disadvantages something, usually because of the information it learned from or how it was built.
C
- Chatbot
- A program people talk to in everyday language, by text or voice, to get answers or get something done.
- Computer vision
- AI that interprets images and video, such as reading text from a photo or spotting a defect on a production line.
- Context window
- How much text a language model can consider at one time, including the question, the instructions and any documents it is given.
- Copilot
- An AI assistant built into the tools people already use, offering suggestions and drafts while the person stays in control.
D
- Data pipeline
- The steps that collect information from where it is created, clean it up and deliver it to where it is used, usually automatically.
E
- Embeddings
- A way of turning text, images or other content into numbers that capture its meaning, so software can find things that are similar in meaning.
F
- Fine-tuning
- Further training of an existing AI model on a specific set of examples so it performs better on a particular kind of task.
G
- Generative AI
- AI that creates new content, such as text, images, audio or code, from a request.
- Guardrails
- Limits built around an AI system to keep it within safe and intended behavior, such as topics it will not discuss or actions it cannot take on its own.
H
- Hallucination
- When an AI model produces something that sounds confident but is wrong or made up. It is why important output should be checked.
- Human in the loop
- A design in which a person reviews or approves what an AI system produces before it has an effect, such as before a message is sent to a customer.
I
- Inference
- The moment an already trained AI model is used to produce an answer or prediction from new input.
- Integration
- Connecting two or more systems so they share information or work together, so people don't copy it between them by hand.
L
- Large language model (LLM)
- An AI model trained on very large amounts of text that can understand and write language. It is the technology behind most AI chat assistants.
M
- Machine learning
- A way of building software that learns patterns from examples instead of following only rules written by hand.
- Multimodal
- Describes an AI model that can work with more than one kind of input or output, such as text, images and audio.
N
- Natural language processing (NLP)
- The area of AI concerned with understanding and producing human language.
P
- Predictive analytics
- Using past information and statistics to estimate what is likely to happen, such as which customers may stop buying.
- Prompt
- The instructions or question given to an AI model. A clear prompt, with context and the result wanted, gives better output.
- Proof of concept (pilot)
- A small, limited trial that tests whether an idea works in the real business before committing to a larger rollout.
R
- Retrieval-augmented generation (RAG)
- A technique where an AI model first looks up relevant information from a trusted source, such as a company's documents, and then answers using it.
- Robotic process automation (RPA)
- Software that copies the clicks and keystrokes a person would use in an application to carry out repetitive, rule-based tasks.
S
- Search engine optimization (SEO)
- Improving a website so it is easier for search engines to understand and more likely to appear when people search.
- Shadow AI
- AI tools people use at work without the business knowing or approving, which can create privacy and accuracy risks.
- Structured data (schema markup)
- Labels added to a web page in a standard format so search engines and AI systems can tell what its content is, such as a business, an article or a question and its answer.
T
- Token
- The small pieces of text, often parts of words, that a language model reads and writes. Usage and limits are often counted in tokens.
- Training data
- The examples an AI model learns from. Its quality and coverage shape what the model does well and where it fails.
V
- Vector database
- A database designed to store embeddings and quickly find the items closest in meaning to a query.
W
- Workflow orchestration
- Coordinating the steps, tools and approvals of a multi-step process so they run in the right order and failures are handled.
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