50+ terms
AI Glossary 2026
All important AI terms clearly explained. From chatbot to RAG, from LLM to prompt engineering — everything you need to know for AI in your business.
AI Basics
- Artificial Intelligence (AI)
- Computer systems that perform tasks normally requiring human intelligence, such as learning, reasoning, and understanding language.
- Machine Learning (ML)
- A branch of AI where systems automatically improve through experience, without being explicitly programmed.
- Deep Learning
- A form of machine learning based on neural networks with multiple layers, inspired by the human brain.
- Neural Network
- A mathematical model inspired by the human brain, consisting of layers of connected nodes (neurons).
- Natural Language Processing (NLP)
- The ability of AI to understand, interpret, and generate human language in both text and speech.
- Generative AI
- AI that creates new content — text, images, code, or audio — rather than just analyzing existing data.
AI Models & Technology
- LLM (Large Language Model)
- AI models trained on massive amounts of text, such as GPT-4, Claude, and Gemini. Can understand and generate text.
- GPT
- A family of language models developed by OpenAI, including ChatGPT. GPT stands for Generative Pre-trained Transformer.
- Transformer
- The neural network architecture that powers modern LLMs. Introduced by Google in 2017.
- Parameters
- The internal variables an AI model learns during training. More parameters often (not always) means a more capable model.
- Token
- The basic unit of text an LLM processes — usually part of a word. 1 token ≈ 4 characters (exact ratio depends on the tokenizer model).
- Context Window
- The amount of text an AI model can process at once. Larger context windows (100K+ tokens) can handle entire documents.
- Fine-tuning
- Specializing an AI model on your specific data or task, on top of its general training.
- Embedding
- A numerical representation of text that lets AI compare meaning. The foundation of semantic search.
- RAG (Retrieval Augmented Generation)
- AI technique where the model retrieves relevant info from your business documents before answering. Ensures accurate, source-specific responses.
- Vector Database
- A database specifically for storing and searching embeddings. Essential for RAG systems.
AI Agents & Automation
- AI Agent
- An autonomous AI that performs tasks independently — thinking, deciding, using tools — rather than just answering questions.
- Chatbot
- An AI program that communicates with users in natural language via text. Usually for customer service and lead generation.
- Voice Agent
- An AI that can conduct phone calls with a natural voice, schedule appointments, and qualify leads.
- RPA (Robotic Process Automation)
- Software robots that automate repetitive computer tasks like data entry, email processing, or invoicing.
- Workflow Automation
- Automating business processes by connecting multiple tools and systems together.
- Copilot
- An AI assistant that helps humans do their work faster, without fully operating autonomously. Examples: GitHub Copilot or Microsoft 365 Copilot.
- Function Calling
- An LLM's ability to call external functions or APIs, like checking a calendar or updating a database.
- Multi-agent Systeem
- Multiple AI agents working together, each with their own specialty, to solve complex tasks.
AI Techniques & Concepts
- Prompt
- The instruction or question you give to an AI model. Better prompts produce better results.
- Prompt Engineering
- The craft of writing effective prompts to get optimal AI results.
- System Prompt
- Background instructions that determine an AI's behavior, such as personality, role, and rules.
- Hallucinatie
- When an AI generates convincing-sounding but factually incorrect information.
- Temperature
- A setting that controls how creative or predictable AI output is. Low temperature = consistent, high temperature = creative.
- Chain-of-Thought
- A technique where AI reasons step-by-step before giving an answer. Improves accuracy.
- Few-shot Learning
- Giving an AI examples in the prompt so it learns what you want without fine-tuning.
- Zero-shot
- Having an AI perform a task without examples — based on instructions alone.
- Grounding
- Connecting an AI to real data (documents, databases) to give factually correct answers.
AI Business Terms
- ROI (Return on Investment)
- The return on an AI investment. E.g., an AI voice agent costs €5K but saves €20K/year = 4x ROI.
- MVP (Minimum Viable Product)
- A first working version of an AI solution to test before full investment. Similar to our pilot.
- Pilot
- A small-scale test of an AI solution in your business, usually 1-2 weeks, to prove value before scaling.
- API Integratie
- Connecting AI to your existing systems (CRM, calendar, email) via programming interfaces (APIs).
- Human-in-the-Loop
- System design where AI prepares decisions but humans give final approval. Essential for high-risk tasks.
- Time-to-Value
- The time between implementation and measurable business results. Utomatic delivers this within 2-4 weeks.
- SLA (Service Level Agreement)
- Contractual agreements about performance, e.g., uptime guarantee or response time.
Compliance & Ethics
- AVG / GDPR
- European privacy law governing how companies process personal data. All Utomatic AI solutions are GDPR-compliant.
- EU AI Act
- European AI legislation (2024) that classifies AI systems by risk and imposes corresponding obligations.
- Bias
- Systematic skewed judgments by AI, often due to biased training data. Important to mitigate.
- Data Sovereignty
- The principle that data is subject to the laws of the country where it's stored. Utomatic uses EU servers.
- Verwerkersovereenkomst
- Contract between a company and AI provider about how personal data is processed. Required under GDPR.
- Explainability
- The ability to explain why an AI made a particular decision. Required for high-risk applications.
Speech & Language AI
- Speech-to-Text (STT)
- Technology that converts spoken words into written text. Foundation of voice agents.
- Text-to-Speech (TTS)
- Technology that converts text into natural-sounding speech. Modern TTS is barely distinguishable from humans.
- Voice Cloning
- Creating an AI copy of someone's voice based on a short recording.
- Intent Recognition
- AI that understands what a user wants to achieve, regardless of exact wording.
- Semantic Search
- Search method that understands meaning, not just exact words. "Car" also finds "vehicle" or "automobile".
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