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Plain-language definitions of the AI terms you'll actually encounter as a business owner.
A way for two software systems to talk to each other. APIs are how your scheduling tool sends data to your accounting software, or how an AI service connects to your existing systems.
Technology that enables computers to perform tasks that normally require human judgment — like reading documents, answering questions, or spotting patterns in data.
Using technology to perform repetitive tasks without human intervention. Can range from simple rules ('send a reminder 24 hours before an appointment') to complex AI-driven workflows.
A software program that simulates conversation with users, typically through text. Modern chatbots powered by LLMs can handle complex questions, while older ones follow scripted decision trees.
An automated sequence that moves data from one place to another, transforming it along the way. For example: email attachment → document scanner → data extraction → accounting software.
The process of adopting digital technology to improve how your business operates — from replacing paper forms with digital ones to using AI for decision-making.
Connecting two or more software systems so they can share data automatically. Good integrations eliminate manual data entry and copy-paste between tools.
A type of AI trained on massive amounts of text that can understand and generate human language. ChatGPT and Claude are built on LLMs.
A type of AI that improves automatically by learning from data rather than following manually written rules. The more data it sees, the better it gets.
Technology that helps computers understand, interpret, and respond to human language — whether written or spoken.
A computing system loosely inspired by the human brain, made up of layers of connected nodes that process information. Neural networks are the foundation of most modern AI.
A measure of how much value you get back compared to what you spent. In AI, ROI typically comes from time savings, error reduction, and revenue recovered from inefficient processes.
Automating a series of connected steps in a business process — like automatically routing an invoice from email to data extraction to accounting software to approval.