AI Glossary

250 AI terms explained in plain English. No jargon, no PhD required — just clear definitions for business leaders.

A/B Testing (with AI)
Using AI to run experiments that compare two versions of something — like a web page or email — to see which one works better. AI can speed this up by finding the winner faster.
Accuracy
How often an AI model gets the right answer. If it correctly labels 95 out of 100 emails as spam or not spam, it has 95% accuracy.
Agent
An AI system that can take actions on its own, such as booking meetings, answering questions, or completing tasks across different tools — not just generating text.
Algorithm
A set of step-by-step instructions that tells a computer how to solve a problem or make a decision. Think of it as a recipe that the machine follows.
Alignment
Making sure an AI system behaves in ways that match human values and goals. A well-aligned AI does what you actually want, not just what it was technically told.
Amazon Bedrock
A service from Amazon Web Services that lets businesses use various AI models through a single platform, without needing to build everything from scratch.
Amazon Web Services (AWS)
The cloud computing arm of Amazon. Many businesses use AWS to host websites, store data, and now run AI tools and services.
Anomaly Detection
Using AI to spot things that look unusual or out of place in your data — like a sudden spike in returns or a strange payment pattern that could signal fraud.
Anthropic
The AI safety company that built Claude. Founded by former OpenAI researchers, they focus on making AI systems that are safe, honest, and helpful.
API (Application Programming Interface)
A way for two pieces of software to talk to each other. When you connect an AI tool to your CRM, they communicate through an API.
Artificial General Intelligence (AGI)
A future type of AI that could learn and reason across any task as well as a human. We do not have AGI today — current AI is good at specific tasks but not everything.
Artificial Intelligence (AI)
Technology that allows computers to perform tasks that normally need human thinking — like understanding language, spotting patterns, or making decisions.
Attention Mechanism
A technique that helps AI focus on the most important parts of the input. It is the key idea behind modern language models like ChatGPT and Claude.
Augmented Intelligence
The idea that AI works best when it helps humans rather than replacing them. It boosts your team\
Auto-complete
When AI predicts and suggests the rest of a word or sentence as you type. You see this in email, search bars, and coding tools.
Automation
Using technology to perform tasks with little or no human effort. AI-powered automation can handle more complex work than traditional rule-based systems.
Autonomous Systems
Machines or software that can operate and make decisions on their own, such as self-driving cars or warehouse robots.
Backpropagation
The process an AI model uses to learn from its mistakes. It works backwards through the model, adjusting settings to improve future results.
Bias (in AI)
When an AI system produces unfair or skewed results because of problems in its training data or design. For example, a hiring tool that favours one group over another.
Big Data
Very large sets of information that are too big for traditional tools to handle. AI thrives on big data because more data often leads to better predictions.
Black Box
When an AI makes decisions but you cannot easily see or understand how it reached them. This is a concern for businesses that need to explain their choices.
Bot
A software program that performs automated tasks. Chatbots answer questions, social media bots post content, and trading bots buy and sell stocks.
Business Intelligence (BI)
Tools and methods for turning raw data into useful insights for business decisions. AI is making BI faster and more powerful.
Chatbot
A program that can have text or voice conversations with people. Modern AI chatbots can understand context and give helpful answers, unlike older scripted ones.
ChatGPT
An AI chatbot made by OpenAI. It can write text, answer questions, summarise documents, and help with many tasks. It is one of the most well-known AI tools.
Classification
When AI sorts things into groups. For example, an email filter classifies messages as spam or not spam, or a support tool classifies tickets by urgency.
Claude
An AI assistant built by Anthropic. Known for being helpful, harmless, and honest. It can handle long documents and complex conversations.
Cloud Computing
Using remote servers on the internet to store data and run programs, instead of using your own computers. Most AI tools run in the cloud.
Clustering
An AI method that groups similar items together without being told what the groups should be. Useful for finding customer segments or patterns in data.
Cohere
An AI company that provides language models designed for business use, with a focus on enterprise search and text understanding.