Glossary

AI terms, in plain English

The words you meet when buying or building AI, defined without jargon.

AI agent
A system that follows a procedure, uses tools such as your CRM or inbox to do work, makes decisions within set limits, and escalates anything outside those limits to a person.
Audit trail
A complete, time-stamped record of what an AI system did and why, so any decision can be reconstructed and reviewed after the fact.
Context window
The amount of text a language model can consider at once. Larger windows let a model work with more of your documents in a single request.
Embedding
A numerical representation of text that lets a system find related content by meaning rather than exact words. It is the basis of most retrieval systems.
Eval
A repeatable test that measures how well an AI system performs against known cases, so accuracy is measured rather than assumed before go-live.
Fine-tuning
Further training of a model on your own examples so it performs better on a specific task. Often unnecessary when good prompting and retrieval will do.
GEO
Generative engine optimisation: structuring content so AI answer engines such as ChatGPT, Claude and Perplexity cite it, alongside traditional search optimisation.
Guardrails
Rules and checks that keep an AI system inside safe limits, such as requiring human approval before money or messages leave the business.
Hallucination
When a model states something that is not supported by its sources. Grounding answers in your documents and requiring citations reduces it.
Human in the loop
A design where a person approves consequential actions before they happen, so autonomy is earned on evidence rather than assumed.
Inference
Running a trained model to get an output, such as a classification or a drafted response. Each model call is an inference.
LLM
A large language model: the kind of AI that reads and writes text, used for classification, extraction, drafting and reasoning over documents.
MCP
Model Context Protocol: a standard that lets an AI agent connect to tools and data sources in a consistent way across different applications.
Observability
The ability to see what an AI system is doing in production: what it ran, what it decided, and what it refused to decide.
Prompt
The instruction given to a model. Clear, specific prompts with examples produce more reliable results than vague ones.
RAG
Retrieval augmented generation: the model answers using your documents, fetched at the moment of the question, and cites where each answer came from.
Token
A chunk of text, roughly a few characters, that models read and write in. Usage and cost are usually measured in tokens.
Vector database
A store of embeddings that lets a retrieval system quickly find the content most related to a question by meaning.
Workflow automation
Connecting AI and plain code to the tools your team uses so repetitive work is classified, routed, drafted and updated without a person doing it by hand.
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