Core terms
- Artificial intelligence (AI): computer systems that perform tasks that normally require human intelligence, such as understanding language.
- Large language model (LLM): an AI model trained on large amounts of text that can generate and understand language.
- Generative AI: AI that creates new content such as text or images.
- Prompt: the instruction you give an AI tool.
Working with AI
- Context window: how much text an AI can consider at once.
- Token: a small chunk of text AI processes.
- Hallucination: when AI produces false information confidently.
- Multimodal: AI that works with more than one type of input, like text and images.
Building with AI
- Agent: an AI system that can take actions using tools.
- RAG: a method where AI answers using information retrieved from documents.
- Fine-tuning: further training a model for a specific purpose.
- API: a way for software to connect to AI services.
Business terms
- Automation: rule-based processes that run without manual work.
- Human in the loop: a person reviews or approves AI output.
Why it matters
Understanding these terms helps you ask better questions when choosing tools or working with vendors.
Ask vendors to explain
When a vendor uses terms you don't recognize, ask them to explain in plain language. A trustworthy provider will happily do so.
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