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AI Accreditation Institute

AI Glossary

Understand the language behind AI decisions. Clear definitions and practical context for leaders, managers, and teams putting AI to work.

231 terms6 topicsUpdated October 5, 2026

Browse the glossary alphabetically. Select any entry for practical context and related terms. Use your browser's Find command to search.

231 of 231 terms · A–Z

A/B TestingAn experiment that compares two versions of a process or product, ideally using random assignment, to estimate which performs better against a defined measure.

In practice

For example, compare an AI-assisted service workflow with the existing process using resolution quality and total handling time.

Related terms

Business & deliveryLink to this term
AccountabilityThe obligation to explain decisions, accept responsibility for outcomes, and address problems. Using AI does not transfer organizational accountability to a model or supplier.

In practice

Assign a named owner for an AI service, including authority to suspend it and responsibility for responding to complaints.

Governance & riskLink to this term
AccuracyThe proportion of predictions that are correct. A high accuracy score can hide poor performance on rare but important cases.

In practice

A system can achieve 99% accuracy by always predicting the majority class when only 1% of cases belong to the other class.

Activation FunctionA mathematical operation applied inside a neural network that determines a unit's output. Nonlinear activation functions allow networks to represent complex relationships.

In practice

A network can learn patterns more complex than a straight-line relationship between inputs and an outcome.

Active LearningA training approach that selects the examples expected to be most useful for labeling, often asking people to resolve uncertain or informative cases.

In practice

An inspection team labels difficult product images first instead of labeling every available image.

Adversarial AttackA deliberate attempt to make an AI system behave incorrectly by manipulating its inputs, data, model, or operating environment.

In practice

A safety test checks whether small changes to an image or document can cause an otherwise reliable system to fail.

Governance & riskLink to this term
Agentic AIAn approach in which AI systems pursue objectives through multiple steps, selecting actions and using feedback within defined permissions. The degree of autonomy varies by system.

In practice

An agent may research suppliers and draft a purchase request, with a person approving the order before it is placed.

AI AdoptionThe process of making AI a useful, sustained part of how people work, supported by appropriate skills, processes, and oversight.

In practice

Measure whether teams complete work more effectively, not only how many people have activated a software license.

Business & deliveryLink to this term
AI AgentSoftware that uses AI to pursue a goal by selecting and carrying out actions, often through connected tools. Its capabilities depend on its design, permissions, and environment.

In practice

A service agent checks order status, proposes a response, and escalates exceptions under defined rules.

AI AssuranceThe collection and assessment of evidence about whether an AI system meets stated requirements for its intended use.

In practice

A review brings together evaluation results, control testing, documentation, and monitoring evidence before deployment.

Governance & riskLink to this term
AI GovernanceThe responsibilities, policies, decision processes, and controls used to direct how an organization develops, obtains, deploys, and monitors AI.

In practice

Governance determines who can approve a use case, what evidence is required, and who handles problems after launch.

AI Impact AssessmentA structured examination of how a proposed or existing AI system may affect people, organizations, and the wider environment.

In practice

Assess a recruitment tool's intended benefits, affected applicants, potential harms, alternatives, and safeguards before use.

Governance & riskLink to this term
AI InventoryA maintained record of the AI systems and use cases an organization develops or uses, including owners, purposes, suppliers, and risk information.

In practice

Include embedded AI in purchased software as well as systems built internally.

Governance & riskLink to this term
AI LiteracyThe knowledge and practical ability to understand, use, evaluate, and question AI appropriately for a person's responsibilities.

In practice

A manager should recognize unreliable outputs, understand approved uses, and know when to seek specialist review.

Business & deliveryLink to this term
AI Operating ModelThe way an organization arranges people, decision rights, funding, processes, and technical capabilities to deliver and govern AI.

In practice

A central team may set shared controls while business units own use cases and benefits.

Business & deliveryLink to this term
AI PolicyAn organization's documented rules for acceptable AI use, responsibilities, data handling, approvals, and escalation.

In practice

A policy can specify which tools are approved, which information may be entered, and when outputs need review.

Governance & riskLink to this term
AI Risk ManagementThe ongoing process of identifying, assessing, addressing, and monitoring potential harm from AI throughout its life cycle.

In practice

Consider operational failures, security, privacy, unfair outcomes, and dependencies as the system and its use change.

AI StrategyAn organization's choices about where AI should create value, which capabilities it will build or obtain, and how it will manage execution and risk.

In practice

Connect proposed AI investments to measurable business priorities and clear ownership.

Business & deliveryLink to this term
AlgorithmA defined sequence of steps for solving a problem or performing a task. Algorithms may be fixed rules or procedures used to train and run AI models.

In practice

A rule that sorts invoices by due date is an algorithm even if it does not use machine learning.

AlignmentThe effort to make an AI system's behavior consistent with intended objectives, instructions, and human values. Alignment is a continuing challenge, not a guarantee of safe behavior.

In practice

A model may follow a user's instruction while still producing an answer that conflicts with organizational policy.

AnnotationThe addition of labels or descriptive information to data so it can be used for training, evaluation, or analysis.

In practice

Reviewers mark whether service messages contain a complaint and identify the relevant sentence.

Anomaly DetectionThe identification of observations or patterns that differ from what a system considers normal or expected.

In practice

Unusual equipment readings can trigger an investigation. An anomaly is a signal to examine, not proof of a fault.

Machine learningLink to this term
Application Programming Interface (API)A defined way for software systems to exchange information or request actions from one another.

In practice

An internal application can send a document to an AI service through an API and receive a structured result.

Area Under the Curve (AUC)A summary measure of a curve. In classification, ROC-AUC measures how well a model ranks positive cases above negative cases across decision thresholds.

In practice

A strong ROC-AUC does not by itself establish the best operating threshold or the business cost of errors.

Artificial General Intelligence (AGI)A term for AI with broad capabilities across many kinds of intellectual tasks. There is no universally accepted definition or test for deciding when AGI has been achieved.

In practice

Assess a product's demonstrated capabilities for your use case rather than relying on an AGI label.

Artificial Intelligence (AI)Computer-based systems that infer how to produce outputs such as predictions, recommendations, content, or decisions from the inputs they receive.

In practice

AI can forecast demand, analyze images, or draft text. Different tasks require different methods and controls.

Association Rule LearningA method for identifying items or events that frequently occur together in a dataset.

In practice

A retailer discovers that certain products are often bought together. The association does not show that one purchase causes the other.

Machine learningLink to this term
AttentionA mechanism that lets a model weight the relevance of different input elements when calculating a representation or output.

In practice

In text processing, attention helps a model use surrounding words to interpret a phrase.

Audit TrailA record of relevant events, changes, approvals, and actions that helps reconstruct what happened in a system.

In practice

Record the model version, information retrieved, actions taken, and human approvals needed to investigate an incident.

Governance & riskLink to this term
AugmentationThe use of AI to extend human capability while people retain an active role in the work and relevant decisions.

In practice

A manager uses AI to compare options, then checks assumptions and makes the decision.

Business & deliveryLink to this term
AutoencoderA neural network trained to reconstruct its input, commonly through a compressed internal representation.

In practice

A model may learn a compact representation of equipment signals for later analysis or anomaly detection.

Machine learningLink to this term
Automatic Speech Recognition (ASR)Technology that converts spoken audio into written text.

In practice

Meeting transcription should be checked for names, specialized vocabulary, and unclear audio before important actions are taken.

AutomationThe use of technology to carry out tasks with reduced manual effort. Automation may use fixed rules, AI, or a combination of both.

In practice

Automatically moving approved invoices between systems can be useful without requiring an AI model.

Automation BiasThe tendency to give excessive weight to a system's output, including when other evidence suggests it is wrong.

In practice

A reviewer accepts an AI-generated explanation without checking the underlying records because it sounds authoritative.

Governance & riskLink to this term
BackpropagationA method for calculating how a neural network's parameters contributed to its error, enabling an optimizer to update those parameters.

In practice

It is a core part of training many neural networks, including systems for language and image analysis.

BaselineA reference level of performance used to judge whether a proposed change delivers improvement.

In practice

Compare a new AI workflow with the current process and a simple alternative using the same workload and quality criteria.

Business & deliveryLink to this term
BatchA group of examples processed together. During training, a batch is commonly used to calculate one parameter update.

In practice

Batch size affects training resource use and behavior; batch processing can also group production requests for efficiency.

Bayes' TheoremA mathematical rule for updating the probability of a hypothesis when new evidence becomes available.

In practice

A forecast can be updated as new sales data arrives, while accounting for what was believed before the new evidence.

BenchmarkA defined task, dataset, or measurement procedure used to compare systems consistently.

In practice

A public benchmark can help shortlist models, but the final choice needs evaluation on your own tasks and operating conditions.

Machine learningLink to this term
BiasA systematic tendency that influences a system's outputs. In AI, bias can refer to statistical error, learning assumptions, or outcomes that disadvantage people.

In practice

Specify which meaning is being discussed. A biased dataset and a neural network's bias parameter are different concepts.

Governance & riskLink to this term
Bias-Variance TradeoffThe tension between a model being too restrictive to capture real patterns and too sensitive to the particular data used to train it.

In practice

A more complex model may fit historical data better while performing worse on new cases.

BoostingAn ensemble approach that builds models sequentially, with later models addressing weaknesses in the combined result.

In practice

Boosted decision trees are a common option for predicting outcomes from structured business records.

Bounding BoxA rectangle used to identify the location and extent of an object in an image or video frame.

In practice

An annotation team draws boxes around damaged areas of products to prepare data for an inspection model.

CalibrationThe degree to which predicted probabilities match observed outcomes over comparable cases.

In practice

Among cases assigned a 70% probability, approximately 70% should have the event occur in a well-calibrated system.

Machine learningLink to this term
Causal InferenceMethods for estimating how changing one factor affects another, using experiments or assumptions that support causal conclusions.

In practice

An observed association between discounts and sales does not by itself establish how much a new discount will increase sales.

Machine learningLink to this term
Central Processing Unit (CPU)A general-purpose processor that executes a computer's instructions and coordinates many computing tasks.

In practice

AI applications use CPUs alongside other hardware; the best configuration depends on the workload and cost constraints.

Change ManagementThe planned work of helping people and teams adopt changes to responsibilities, processes, skills, and ways of working.

In practice

An AI rollout includes training, revised procedures, feedback channels, and support for employees whose tasks change.

Business & deliveryLink to this term
ChatbotSoftware that interacts with users through conversation. A chatbot may use scripted rules, AI models, or both.

In practice

A conversational interface alone does not establish whether the system can take actions or access current business information.

ChunkingDividing content into smaller pieces for processing, retrieval, or inclusion in a model's context.

In practice

A knowledge assistant retrieves relevant sections of a manual instead of sending the entire document for every question.

Generative AILink to this term
ClassificationA prediction task that assigns an input to one or more predefined categories.

In practice

A model routes incoming service requests into billing, technical support, or account administration categories.

Machine learningLink to this term
ClusteringGrouping data points by similarities without requiring a predefined label for each group.

In practice

A business explores patterns in customer behavior, then checks whether the resulting groups are useful and meaningful.

Cold StartThe difficulty of making useful recommendations or predictions when little relevant history exists for a new user, item, or system.

In practice

A new customer may initially receive recommendations based on product information or stated preferences instead of purchase history.

Machine learningLink to this term
Collaborative FilteringA recommendation approach that uses patterns of interaction across users and items to suggest what someone may prefer.

In practice

A service recommends content based on similar viewing patterns, subject to privacy and suitability controls.

Machine learningLink to this term
Computer VisionThe field of AI concerned with extracting useful information from images and video.

In practice

A manufacturer uses images to identify surface defects, then measures performance under real lighting and production conditions.

Concept DriftA change in the relationship between model inputs and the outcome being predicted.

In practice

The factors associated with customer cancellations change after a competitor introduces a new service.

Confidence IntervalAn interval calculated using a method designed to contain the true population value at a stated rate across repeated sampling.

In practice

A 95% confidence method would capture the true value in about 95% of repeated studies. This differs from a model's confidence score.

Machine learningLink to this term
Confidence ScoreA number a model or system reports to indicate support for an output. Its interpretation depends on how it was produced and calibrated.

In practice

An AI statement that it is '95% confident' is not automatically a validated 95% chance of being correct.

Machine learningLink to this term
Confirmation BiasThe tendency to seek or favor evidence that supports an existing belief while discounting conflicting evidence.

In practice

A project team highlights successful demonstrations but overlooks failures that challenge its preferred investment decision.

Governance & riskLink to this term
Context WindowThe amount of information a model can process together in one interaction, commonly measured in tokens. Input and output limits depend on the model and service.

In practice

A larger window can hold more material, but does not guarantee that the model will use every detail accurately.

Convolutional Neural Network (CNN)A neural network architecture that uses filters to detect patterns across local regions of an input, particularly images.

In practice

An image model can combine local features such as edges into patterns useful for identifying a product defect.

Machine learningLink to this term
CopilotA common product term for an AI assistant that supports a person inside a task or workflow. Its actual autonomy and permissions vary by implementation.

In practice

An assistant suggests a report draft while the employee reviews the facts and authorizes publication.

Generative AILink to this term
Cross-ValidationA family of methods that repeatedly split data into training and validation portions to assess how a model performs beyond its training examples.

In practice

Use splits that respect time or shared customers when random splitting would let related information cross between groups.

Machine learningLink to this term
Data AugmentationCreating additional training examples by transforming existing data while preserving relevant meaning or labels.

In practice

An inspection dataset may include rotated or differently lit product images to help a model handle realistic variation.

Data DriftA change in the characteristics or distribution of the data a system receives compared with a reference period.

In practice

A model built for one customer mix receives increasing traffic from another region and needs its performance reassessed.

Data GovernanceThe responsibilities, rules, and processes used to manage data quality, access, use, security, and life-cycle decisions.

In practice

An AI project needs clarity about who owns its data and who can approve changes or new uses.

Data LeakageIn model development, the use of information that would not legitimately be available when making a real prediction. In security, the term can also mean unauthorized disclosure of data.

In practice

Including future payment status in a model that predicts late payments creates misleading evaluation results.

Data LineageA record of how data moves and changes as it passes through systems and processing steps.

In practice

If a dashboard or model uses an incorrect field, lineage helps identify the source and affected downstream outputs.

Data MinimizationLimiting the data collected, retained, and used to what is needed for a defined purpose.

In practice

An AI assistant answering policy questions may need policy documents without needing employees' individual personnel files.

Data PoisoningThe intentional manipulation of data used to train, adapt, or support an AI system in order to influence its behavior.

In practice

An attacker introduces misleading examples into a training pipeline or false material into a retrieval knowledge base.

Governance & riskLink to this term
Data PrivacyThe appropriate handling of information about people, including how it is collected, used, shared, protected, and retained.

In practice

Check what an AI supplier does with submitted information and whether the intended use is compatible with applicable obligations.

Governance & riskLink to this term
Data ProvenanceInformation about where data came from, who created or supplied it, and the circumstances of its collection.

In practice

Before using a dataset, establish its origin, collection context, and any restrictions that affect the proposed use.

Data QualityHow well data meets the needs of its intended use, including accuracy, completeness, consistency, timeliness, and relevance.

In practice

A complete customer table can still be unsuitable for forecasting if the definitions changed halfway through the period.

Data ReadinessThe extent to which the data needed for a use case is accessible, suitable, governed, and usable in the intended workflow.

In practice

A promising use case may be delayed by missing labels, restricted access, or inconsistent identifiers across systems.

Business & deliveryLink to this term
Data SovereigntyThe relationship between data and the laws or governing authority that apply to it. It is related to, but broader than, where data is physically stored.

In practice

Review storage location, processing, remote access, and supplier arrangements instead of treating local hosting as a complete answer.

DatasetA collection of data assembled for a purpose such as analysis, training, or evaluation. It may contain records, text, images, audio, or other formats.

In practice

Document what the collection represents, what it excludes, and how it will be used.

Decision RightsThe assignment of authority to make, approve, challenge, or stop particular decisions.

In practice

Specify who can approve a pilot, release an AI system, accept residual risk, and authorize material changes.

Business & deliveryLink to this term
Decision TreeA model that makes predictions by following a series of branching conditions on input values.

In practice

A tree may split service requests by product type and issue characteristics to predict the appropriate support route.

Machine learningLink to this term
Deep LearningMachine learning that uses neural networks with multiple layers to learn representations and patterns from data.

In practice

It supports many language, image, and speech systems, but is not necessary for every business prediction task.

Machine learningLink to this term
DeepfakeAI-generated or manipulated media that convincingly portrays someone saying or doing something they did not actually say or do.

In practice

An unexpected payment instruction in a familiar-sounding voice should be verified through an established independent channel.

Governance & riskLink to this term
Differential PrivacyA mathematical approach that limits how much an analysis can reveal about whether a particular individual's data was included.

In practice

An organization can add carefully controlled randomness when releasing statistics, balancing privacy protection with usefulness.

Diffusion ModelA generative model that learns to reverse a gradual noising process to produce new samples.

In practice

Many image-generation systems use diffusion methods to create images from prompts or other inputs.

Generative AILink to this term
Dimensionality ReductionReducing the number of variables used to represent data while retaining information useful for a task.

In practice

A team can simplify a dataset for visualization or modeling, while checking what information the reduction discards.

DistillationTraining one model to reproduce useful behavior or information from another model, often to obtain a smaller or more efficient system.

In practice

A compact model may be trained for a narrow service task using outputs from a larger model, then evaluated independently.

Generative AILink to this term
Edge AIRunning AI processing on or near the device that collects the data, rather than relying entirely on a remote service.

In practice

A factory camera analyzes images locally when low latency or unreliable connectivity makes cloud-only processing unsuitable.

EmbeddingA numerical representation of an item, such as text or an image, designed so useful relationships can be captured in a vector space.

In practice

A search system compares embeddings to retrieve documents with related meanings, even when their wording differs.

Ensemble MethodsApproaches that combine multiple models to produce a prediction or decision.

In practice

Combining several models may improve performance or stability, but adds complexity and still requires evaluation.

EntropyA mathematical measure of uncertainty in a probability distribution.

In practice

A classifier that spreads probability across many possible categories has higher entropy than one that concentrates it on a single category.

Machine learningLink to this term
EpochOne complete pass through the training dataset during model training.

In practice

More epochs mean more opportunities to learn, but excessive training can make a model fit the training data too closely.

EU AI ActAn EU legal framework that regulates AI using differentiated requirements and prohibitions. Responsibilities depend on matters including the system's use and the organization's role.

In practice

A business needs to establish which rules apply to its particular activities, including when obtaining AI from another supplier.

EvaluationThe systematic assessment of an AI system against defined criteria, using evidence appropriate to its intended use.

In practice

Assess the complete workflow for quality, safety, cost, and usability, including difficult cases and relevant user groups.

Machine learningLink to this term
ExplainabilityThe ability to provide useful reasons or accounts for a system's outputs or behavior. An explanation must be assessed for accuracy and suitability for its audience.

In practice

A plausible narrative generated after a decision is not necessarily a faithful explanation of how the system produced it.

F1 ScoreThe harmonic mean of precision and recall: 2 × precision × recall ÷ (precision + recall), where defined.

In practice

It summarizes a balance between two metrics, but does not directly represent business costs or account for true negatives.

FairnessThe assessment and treatment of unjustified differences in how an AI system affects people or groups. Different fairness measures can conflict.

In practice

Select and justify relevant criteria for the use case, then examine performance and impacts across affected groups.

False NegativeA case incorrectly classified as negative when it is actually positive.

In practice

A defect-detection system marks a damaged item as acceptable and the item proceeds to shipping.

False PositiveA case incorrectly classified as positive when it is actually negative.

In practice

A legitimate customer transaction is incorrectly flagged as suspicious and requires unnecessary review.

FeatureAn input characteristic used by a model to make a prediction.

In practice

For a demand model, features might include recent sales, season, price, and delivery lead time.

Feature EngineeringDesigning or transforming model inputs to make useful patterns easier to learn.

In practice

A team converts individual purchase records into measures such as days since the last purchase.

Machine learningLink to this term
Feature LearningLearning useful representations from data instead of specifying every feature manually.

In practice

A neural network learns image patterns from examples rather than relying only on features designed by an engineer.

Machine learningLink to this term
Feature SelectionChoosing which available input variables to include in a model.

In practice

Remove inputs that add little value or would not be available at prediction time, then reassess performance.

Machine learningLink to this term
Federated LearningTraining a model across multiple devices or organizations while keeping raw training data at those locations and exchanging model-related updates.

In practice

It can reduce centralized data collection, but privacy and security still require additional safeguards.

Machine learningLink to this term
Few-Shot PromptingGiving a model a small number of examples in the prompt to demonstrate the desired task, format, or style.

In practice

Provide a few correctly categorized support messages before asking the model to categorize a new one.

Generative AILink to this term
Fine-TuningAdditional training that changes a pretrained model's parameters using data selected for a particular task or behavior.

In practice

A team tunes a model to produce a consistent response format. This does not automatically give it current knowledge or eliminate errors.

Generative AILink to this term
Foundation ModelA model trained on broad data that can be adapted or used for a range of downstream tasks.

In practice

Evaluate the chosen model and its application together; broad capability does not establish suitability for a specific business use.

Garbage In, Garbage OutThe principle that poor-quality inputs can produce unreliable outputs even when the underlying processing works as designed.

In practice

A forecasting model cannot reliably correct for sales records that systematically omit a major channel.

General Data Protection Regulation (GDPR)An EU regulation governing the processing of personal data. Its application to an AI activity depends on the data, processing, and circumstances involved.

In practice

Using AI does not remove obligations concerning personal data, including those relevant to the organization's specific processing activity.

GeneralizationA model's ability to perform usefully on new examples beyond the data used to train it.

In practice

Good training results matter only if the system also performs well on the kinds of cases it will encounter in operation.

Generative Adversarial Network (GAN)A model setup in which a generator learns to create samples while a discriminator learns to distinguish generated samples from reference data.

In practice

A GAN can produce synthetic images, but generated material still needs quality and suitability checks.

Generative AILink to this term
Generative AIAI that produces content such as text, images, audio, video, or code using patterns learned from data.

In practice

A model can draft a customer response, but the organization must still check its accuracy and suitability before use.

Gradient DescentAn optimization method that repeatedly adjusts parameters in a direction intended to reduce a model's loss.

In practice

The learning rate controls the size of the updates and influences whether training progresses effectively.

Graphics Processing Unit (GPU)A processor designed to execute many operations in parallel, making it useful for many AI training and inference workloads.

In practice

GPU requirements can materially affect infrastructure cost, availability, and deployment options.

Ground TruthReference information treated as correct for a particular training or evaluation task. It may come from measurement or human judgment and can itself contain errors.

In practice

Check disagreement and ambiguity in reference labels before interpreting the model's score as an objective measure of quality.

GroundingConnecting a model's response to supplied evidence, retrieved information, or other relevant external context.

In practice

An assistant bases an answer on an approved policy document and provides a reference that the user can check.

GuardrailsControls intended to constrain an AI system's inputs, outputs, or actions within defined boundaries.

In practice

Combine access controls, content checks, approval requirements, and monitoring. A written prompt alone is not a complete control system.

HallucinationAn AI-generated statement or output that is unsupported, incorrect, or inconsistent with the relevant evidence, even when presented convincingly.

In practice

A model invents a policy clause or cites a source that does not support its answer.

Generative AILink to this term
Human OversightThe arrangements that give people the information, competence, authority, and opportunity to supervise or challenge an AI system.

In practice

A reviewer needs enough time and evidence to assess an output, plus the ability to reject or stop it.

Governance & riskLink to this term
Human-in-the-Loop (HITL)A design in which a person directly contributes to specified stages of an AI process, such as labeling data, checking outputs, or approving an action.

In practice

A person approves a consequential transaction before the system executes it. The review must allow meaningful intervention.

Governance & riskLink to this term
Human-on-the-Loop (HOTL)A design in which people supervise an operating system and can intervene, rather than approving every individual action.

In practice

A supervisor monitors exceptions and can pause automation when performance or risk exceeds a defined limit.

Governance & riskLink to this term
HyperparameterA setting that controls a model's structure or learning process, rather than a value learned directly as a model parameter.

In practice

Examples include the learning rate, tree depth, and batch size. Tuning decisions should use validation evidence.

Incident ResponseThe coordinated process for detecting, containing, investigating, and recovering from an incident involving an AI system.

In practice

A response plan identifies who can stop the system, preserve evidence, assess affected parties, and approve a safe return to service.

Governance & riskLink to this term
InferenceUsing a trained model to generate an output from an input. Inference is distinct from the training process that establishes or changes the model's parameters.

In practice

Each request to summarize a document runs inference; it does not necessarily train or update the model.

Information RetrievalFinding and ranking information relevant to a query from a collection of documents or other records.

In practice

An enterprise search system retrieves candidate documents before a person or model uses them to answer a question.

InterpretabilityThe extent to which a person can understand a model's operation or the relationship between its inputs and outputs.

In practice

A small decision tree may be easier to inspect directly than a large neural network, depending on the task.

ISO/IEC 42001An international standard specifying requirements for an artificial intelligence management system within an organization.

In practice

It addresses organizational management processes. Certification of a management system is not proof that every AI output is safe or correct.

JailbreakAn attempt to get a model to bypass its intended behavioral restrictions, often by manipulating the request or conversation.

In practice

Authorized testing checks whether the model can be induced to violate a relevant policy or reveal restricted material.

Knowledge GraphA representation of entities and their relationships that makes connected information usable by software.

In practice

An organization links suppliers, contracts, products, and locations to support search and analysis.

Large Language Model (LLM)A model trained on large amounts of language data to recognize and generate patterns in text. Some models also process other modalities.

In practice

An LLM can draft or summarize text, but fluent language is not evidence that its claims are correct.

LatencyThe time between a request or event and the relevant system response. Different measures may track the first output or the completed result.

In practice

A workflow can feel slow even when the model generates quickly if retrieval, tool calls, or approvals add delays.

Business & deliveryLink to this term
LayerA group of operations or units within a neural network that transforms information before passing it to another part of the network.

In practice

Hidden layers build intermediate representations between the inputs and the final output.

Learning RateA training setting that controls the size of parameter updates during optimization.

In practice

An unsuitable learning rate can slow learning or make training unstable.

Learning to RankUsing machine learning to order results according to their predicted relevance or usefulness.

In practice

A search system ranks help articles so the most relevant answers appear first.

Machine learningLink to this term
Least PrivilegeGiving a person or system only the access and authority needed for its approved purpose.

In practice

An assistant that summarizes invoices may need read access, without permission to change supplier details or release payments.

Governance & riskLink to this term
Logistic RegressionA statistical model commonly used for classification that maps a weighted combination of inputs to a probability, often using a logistic function.

In practice

Despite its name, it is frequently used for yes-or-no prediction tasks rather than predicting a continuous quantity.

Machine learningLink to this term
Long Short-Term Memory (LSTM)A type of recurrent neural network with mechanisms for retaining and updating information across a sequence.

In practice

It has been used for tasks such as analyzing time series or processing sequential language data.

Machine learningLink to this term
Loss FunctionA mathematical measure of how far a model's outputs depart from its training objective.

In practice

The training loss is not automatically the same as the business cost of an incorrect output.

Machine Learning (ML)Methods that learn patterns from data to improve performance on a task, rather than specifying every decision through hand-written rules.

In practice

A model learns from past examples to estimate demand, categorize documents, or detect unusual behavior.

Machine Learning Operations (MLOps)The practices used to develop, deploy, monitor, maintain, and govern machine learning systems reliably over time. LLMOps applies related practices to language-model applications.

In practice

Maintain versioned models, data pipelines, evaluations, release procedures, and monitoring rather than treating launch as the end of the project.

Business & deliveryLink to this term
Machine TranslationThe automatic conversion of content from one language to another.

In practice

For important materials, review terminology, meaning, and cultural context before publishing a machine-generated translation.

ModelA mathematical or computational representation used to produce outputs from inputs. In machine learning, its behavior is shaped through training.

In practice

A model is one component of a larger system that may also include data sources, tools, interfaces, and human review.

Model CardDocumentation describing a model's intended use, evaluation, characteristics, and known limitations.

In practice

Use model documentation as one input to due diligence, then test the application under your own operating conditions.

Governance & riskLink to this term
Model Context Protocol (MCP)An open protocol for connecting AI applications with external tools and data sources through a consistent interface.

In practice

A connector can make a document repository available to an assistant. Authentication and permissions still need to be configured appropriately.

MonitoringThe ongoing measurement of system behavior, performance, costs, and risks during operation.

In practice

Track failure patterns, user outcomes, response times, and unexpected changes, with defined thresholds for action.

Business & deliveryLink to this term
Monte Carlo SimulationA method that repeatedly samples from specified probability distributions to explore possible outcomes.

In practice

A team explores a range of project costs and benefits instead of relying on a single forecast.

Machine learningLink to this term
Multimodal AIAI that processes or generates more than one type of information, such as text, images, audio, or video.

In practice

An assistant analyzes an equipment photograph alongside a written maintenance note.

Generative AILink to this term
Multitask LearningTraining a model on multiple related tasks so shared representations can support more than one objective.

In practice

One model may learn to identify the topic and sentiment of service messages using shared language features.

Machine learningLink to this term
Naive BayesA family of classifiers based on Bayes' theorem that assumes features are conditionally independent given the class.

In practice

It can provide a simple starting point for classifying text, even when the independence assumption is imperfect.

Named Entity Recognition (NER)Identifying and categorizing references to entities in text, such as people, organizations, locations, or dates.

In practice

A document workflow extracts supplier names and contract dates for review and indexing.

Machine learningLink to this term
Narrow AIAI designed or used for a limited range of tasks, rather than general competence across all intellectual activities.

In practice

A highly capable inspection model does not automatically have the ability to plan a business strategy.

Natural Language Processing (NLP)The field concerned with computational methods for processing, analyzing, and generating human language.

In practice

Applications include document classification, translation, information extraction, and conversation.

Neural NetworkA model made of connected computational units whose adjustable parameters transform inputs into outputs.

In practice

Neural networks range from small prediction models to large systems for language, images, and other complex data.

NeuronA computational unit in a neural network that transforms incoming values into an output, commonly using weights, a bias, and an activation function.

In practice

The term is inspired by biology, but an artificial neuron is a mathematical operation rather than a biological brain cell.

NIST AI Risk Management FrameworkA voluntary framework for managing AI risks, organized around the functions Govern, Map, Measure, and Manage.

In practice

Organizations can use it to structure responsibilities, understand context, assess risk, and choose responses throughout the AI life cycle.

ObservabilityThe ability to understand a system's internal behavior from evidence such as logs, metrics, and traces.

In practice

For an AI workflow, trace which documents were retrieved, which tools were called, and where an error or delay occurred.

Business & deliveryLink to this term
Open-Weight ModelA model whose trained weights are made available under specified terms. This alone does not mean its training data, code, or permitted uses are unrestricted.

In practice

Review the license and available materials before assuming that a downloadable model is fully open source or suitable for commercial use.

Generative AILink to this term
Optical Character Recognition (OCR)Technology that converts text in images or scanned documents into machine-readable text.

In practice

An invoice workflow extracts printed text, then checks whether key fields such as amounts and account numbers were read correctly.

OrchestrationCoordinating models, tools, data retrieval, and other steps so they work together as a complete process.

In practice

A document assistant retrieves sources, generates a draft, runs checks, and routes exceptions for review.

OverfittingLearning details of the training data that do not generalize well to new examples.

In practice

A model performs impressively on familiar records but makes many errors when used on genuinely new cases.

ParameterA numerical value within a model that helps determine its outputs. Many parameters are learned during training.

In practice

Model size is often described by parameter count, but a larger count alone does not establish better performance for your task.

Pattern RecognitionIdentifying regularities or structures in data that can support tasks such as classification, detection, or prediction.

In practice

A system identifies recurring combinations of sensor readings associated with equipment wear.

Machine learningLink to this term
Personal InformationInformation that identifies a person or can reasonably be linked to them, depending on the applicable legal definition and context.

In practice

Names, identifiers, and combinations of otherwise ordinary details can create privacy obligations when linked to individuals.

Governance & riskLink to this term
PilotA limited deployment used to test whether an approach works in realistic conditions before a broader rollout. A proof of concept may address a narrower feasibility question.

In practice

Define success, cost, risk, and exit criteria before starting so the pilot can support a clear scale, revise, or stop decision.

Business & deliveryLink to this term
PoolingAn operation that summarizes nearby values in a representation, often reducing its size in a convolutional network.

In practice

Max pooling keeps the largest value in a region; average pooling uses the region's average.

Machine learningLink to this term
PrecisionAmong the cases a model labels positive, the proportion that are actually positive: true positives ÷ all predicted positives.

In practice

If 80 of 100 flagged invoices contain the target error, precision is 80%.

PredictionAn output that estimates a category, value, event, or other unknown result from available inputs. It need not concern the future.

In practice

Predicting a document's category and forecasting next month's demand are both prediction tasks.

PreprocessingPreparing data for analysis or modeling through steps such as cleaning, transformation, normalization, or handling missing values.

In practice

Apply transformations consistently and avoid using test data to make training-stage decisions.

Pretrained ModelA model that has already undergone training and can be used directly or adapted for another purpose.

In practice

Starting with a pretrained model can reduce development work, but suitability and licensing still need assessment.

Machine learningLink to this term
Principal Component Analysis (PCA)A linear method that transforms data into uncorrelated components ordered by the variation they capture.

In practice

It can compress numerical data, but the components with the most variation are not necessarily those most useful for a business prediction.

PromptThe instructions and other input provided to a generative model to guide its response.

In practice

A useful request states the task, relevant context, expected format, and any constraints that matter to the result.

Generative AILink to this term
Prompt EngineeringDesigning and testing the instructions, examples, and context given to a model to improve performance on a task.

In practice

Test a revised prompt on representative cases instead of judging it from a single successful response.

Generative AILink to this term
Prompt InjectionAn attack that supplies instructions through inputs or external content in an attempt to redirect an AI application's behavior.

In practice

A retrieved document contains text that tries to override the assistant's task or cause an unauthorized action.

QuantizationRepresenting model values with lower numerical precision to reduce storage or computation requirements.

In practice

A smaller memory footprint can make local deployment more practical, but the effect on quality must be tested.

Machine learningLink to this term
Random ForestAn ensemble of decision trees trained with randomness in data sampling and feature selection, whose outputs are combined.

In practice

It is a common method for classification and numerical prediction using structured records.

RecallAmong all actual positive cases, the proportion correctly identified as positive: true positives ÷ all actual positives.

In practice

If a system finds 80 of 100 invoices containing the target error, recall is 80%.

Recommender SystemA system that ranks or suggests items based on their expected relevance to a user or context.

In practice

Recommendations may support content discovery or product selection, with controls for unsuitable or misleading suggestions.

Recurrent Neural Network (RNN)A neural network that carries information from earlier steps into later steps when processing a sequence.

In practice

It can model relationships across ordered observations such as sensor readings or words.

Machine learningLink to this term
Red TeamingA structured effort to discover weaknesses by deliberately testing how a system might fail, be misused, or respond to adversarial conditions.

In practice

Authorized testers probe a customer assistant for misleading answers, inappropriate disclosures, and actions outside its approved scope.

Governance & riskLink to this term
RegressionIn machine learning, a prediction task that estimates a numerical value. In statistics, regression also refers more broadly to modeling relationships between variables.

In practice

A model estimates delivery time in hours. Linear regression is one method; logistic regression is commonly used for classification.

Machine learningLink to this term
RegularizationMethods that constrain learning or model complexity to reduce overfitting and improve performance on new data.

In practice

Penalties on large weights or stopping training early can help, but their value should be checked on validation data.

Machine learningLink to this term
Reinforcement Learning (RL)Learning how to choose actions through interaction with an environment and feedback expressed as rewards.

In practice

A system may learn a scheduling policy in simulation. A poorly designed reward can encourage behavior that misses the actual business goal.

Machine learningLink to this term
Reinforcement Learning from Human Feedback (RLHF)A training approach that uses human feedback to inform a reward signal for reinforcement learning, helping shape model behavior.

In practice

Human preference feedback can improve responses, but preferred answers are not necessarily accurate, fair, or suitable for every user.

ReproducibilityThe ability to obtain consistent or comparable results when a process is repeated with documented data, code, settings, and conditions.

In practice

Version prompts, model settings, evaluation data, and tools so performance changes can be investigated.

Machine learningLink to this term
Residual RiskThe risk that remains after controls and other treatments have been applied.

In practice

A named decision-maker should understand the remaining exposure before approving a deployment or material change.

Governance & riskLink to this term
Responsible AIThe practice of developing and using AI with appropriate consideration for people, safety, fairness, privacy, transparency, and accountability.

In practice

Translate principles into assigned responsibilities, design choices, operating controls, and evidence of how the system performs.

RetrainingTraining a model again, often with updated data, to maintain or change its performance.

In practice

Retraining should be followed by evaluation and controlled release. It should not be assumed to fix every performance issue.

Business & deliveryLink to this term
Retrieval-Augmented Generation (RAG)An approach that retrieves relevant information and supplies it to a generative model as context for producing a response.

In practice

An assistant answers from approved company documents. Retrieval can improve grounding, but poor sources or retrieval can still produce wrong answers.

Return on Investment (ROI)A measure comparing net benefit with investment cost over a stated period, often calculated as (benefits minus costs) ÷ costs.

In practice

Include implementation, oversight, rework, and ongoing operating costs. Time saved becomes financial value only when it is usefully converted.

Business & deliveryLink to this term
Risk AppetiteThe amount and types of risk an organization is willing to pursue or retain in meeting its objectives.

In practice

Translate high-level statements into practical limits, approval requirements, and escalation criteria for particular AI uses.

Governance & riskLink to this term
Robotic Process Automation (RPA)Software that automates repetitive interactions with applications, often by following explicit rules.

In practice

A bot copies approved data between legacy systems. AI may be added to handle less structured inputs.

Business & deliveryLink to this term
RollbackReturning a system to a previous working state or switching to a defined fallback when a change or failure makes continued operation unacceptable.

In practice

Reverting software does not necessarily undo messages sent, payments made, or other external actions; those need separate recovery steps.

Business & deliveryLink to this term
Self-Supervised LearningLearning from targets generated from the structure of the data itself, rather than relying on separate human-created labels for every example.

In practice

A language model can learn by predicting missing or subsequent parts of text.

Machine learningLink to this term
Semi-Supervised LearningTraining approaches that use both labeled and unlabeled data to improve a model.

In practice

A small set of reviewed support messages is combined with a much larger collection of unlabeled messages.

Machine learningLink to this term
Sentiment AnalysisIdentifying attitudes or emotional tone expressed in content, often using categories such as positive, negative, or neutral.

In practice

Service teams can monitor broad feedback patterns, while accounting for sarcasm, mixed opinions, and cultural context.

Machine learningLink to this term
Shadow AIAI tools or uses operating outside an organization's established visibility, approval, or control processes.

In practice

Employees may upload business information into personal AI accounts when approved tools do not meet their needs.

Governance & riskLink to this term
SimulationA representation of a process or environment used to explore behavior under specified conditions.

In practice

Test alternative operational decisions in a simulated setting while checking whether its assumptions reflect the real environment.

Business & deliveryLink to this term
Small Language Model (SLM)A language model with a smaller resource footprint than larger alternatives. The term has no universal size threshold.

In practice

A smaller model may suit a narrow task or local deployment when it meets required quality, cost, and response-time targets.

Generative AILink to this term
Stage GateA planned decision point where evidence is reviewed before work proceeds to the next phase.

In practice

Before moving from pilot to production, review performance, benefits, ownership, controls, and operational readiness.

Business & deliveryLink to this term
Statistical DistributionA description of the values a variable can take and how frequently or how probably they occur.

In practice

Check whether production inputs differ from the distributions represented in training and evaluation data.

Machine learningLink to this term
Structured DataData organized according to a defined structure, such as rows and columns with specified fields. Structured data does not have to be labeled for machine learning.

In practice

An order table with dates, quantities, and product codes is structured data.

Supervised LearningLearning a mapping from inputs to target outputs using examples that contain both.

In practice

Historical messages paired with their correct service categories can train a routing model.

Machine learningLink to this term
Support Vector Machine (SVM)A learning method that finds a decision boundary with a large margin between classes; related versions also support regression.

In practice

It can be useful for some structured or text tasks, with suitability depending on data size, features, and tuning.

Synthetic DataData created through generation or simulation rather than directly collected as real observations.

In practice

It may support testing or training, but is not automatically realistic, unbiased, or free of privacy risks.

TemperatureA generation setting that adjusts the distribution used when sampling outputs. Higher values typically allow more variation; effects depend on the model and implementation.

In practice

A lower temperature may make responses more consistent, but does not guarantee factual accuracy or identical results.

Test DataData reserved to assess performance after development choices have been made, with separation from training and tuning.

In practice

Repeatedly adjusting the system based on the same test results can weaken the independence of the final assessment.

ThresholdA cutoff used to convert a score into a decision, such as whether to flag a case for review.

In practice

Changing a fraud-alert threshold changes the balance between missed problems and unnecessary investigations.

ThroughputThe amount of work a system completes in a given time, such as requests or documents processed per minute.

In practice

A service must handle peak demand without unacceptable delays or a decline in output quality.

Business & deliveryLink to this term
Time SeriesObservations recorded in time order, often at regular intervals.

In practice

Demand forecasting should account for trends, seasonality, and the fact that future information must not leak into earlier predictions.

TokenA unit used by a model to represent and process information. For text, a token may be a word, part of a word, punctuation, or another element.

In practice

Token counts influence context limits, usage charges, and response length; they do not correspond to a fixed number of words.

Tool UseAn AI application's use of external functions or systems to retrieve information or perform actions.

In practice

A model requests an order lookup; the application checks authorization, executes the call, and returns the result.

Topic ModelingMethods for finding recurring themes across a collection of documents.

In practice

A team explores thousands of feedback comments to identify themes, then checks whether the labels and groupings make sense.

Machine learningLink to this term
Total Cost of Ownership (TCO)The full cost of obtaining, operating, maintaining, and retiring a system over a defined period.

In practice

Include integration, data work, licenses, compute, monitoring, human review, change management, and exit costs.

Business & deliveryLink to this term
TrainingThe process of adjusting a model using data or feedback to improve its performance against an objective.

In practice

Training changes model behavior through parameter updates; simply submitting a request for inference does not necessarily do so.

Training DataThe examples used to fit a model's parameters during training.

In practice

Check relevance, representativeness, quality, permissions, and separation from evaluation data.

Transfer LearningUsing knowledge or representations learned for one task or dataset to support another.

In practice

An image model pretrained on broad data is adapted to recognize defects in a specific product line.

Machine learningLink to this term
TransformerA neural network architecture built around attention mechanisms that capture relationships among elements of an input.

In practice

Transformers underpin many language models and are also used with images, audio, and other data.

TransparencyProviding appropriate information about a system's purpose, use, capabilities, limitations, and responsibilities to relevant people.

In practice

Users may need to know when they are interacting with AI, what it can do, and how to seek human assistance.

Turing TestA proposed test of whether a machine's conversation can be distinguished from a human's by an evaluator in a specified setting.

In practice

Appearing human in conversation does not establish truthfulness, safety, understanding, or suitability for a business role.

UncertaintyA lack of complete knowledge about an outcome or estimate, arising from factors such as limited data, variability, or model limitations.

In practice

When the evidence is weak or the situation is unfamiliar, the workflow may need more information or human judgment.

Machine learningLink to this term
UnderfittingA failure to learn enough of the relevant structure in the data to perform the task well.

In practice

A model that is too simple or insufficiently trained may perform poorly on both training and new examples.

Unstructured DataInformation that does not follow a fixed tabular schema, such as free text, images, audio, or video. It can still be organized and processed.

In practice

A collection of well-edited policy documents is unstructured data, even though it is neither raw nor disorganized.

Unsupervised LearningLearning patterns or structure from data without a target label for each example.

In practice

A model groups similar customer records to support exploration, with people assessing the meaning and usefulness of the groups.

Machine learningLink to this term
Use CaseA defined situation in which a system supports a particular user, task, or decision to achieve an intended outcome.

In practice

Describe the problem, users, workflow, expected value, constraints, and success measures before selecting technology.

Business & deliveryLink to this term
Validation DataData used during development to compare options and tune a system without directly fitting the model's parameters on those examples.

In practice

Use a separate final test set or other appropriate independent assessment after choosing the model and settings.

Value RealizationTurning expected benefits into demonstrated improvements in business outcomes after implementation.

In practice

If a tool saves time, establish whether that time improves service, increases capacity, reduces costs, or supports another measurable outcome.

Business & deliveryLink to this term
Vanishing and Exploding GradientsTraining problems in which calculated gradients become so small or large that useful parameter updates are difficult or unstable.

In practice

These issues affect model design and training reliability rather than being errors a business user can fix with a better prompt.

Machine learningLink to this term
VarianceA measure of how spread out values are around their mean. In model evaluation, high variance can also describe sensitivity to the particular training sample.

In practice

A model that changes substantially when trained on slightly different samples may perform inconsistently on new data.

Machine learningLink to this term
Vector DatabaseA system designed to store and search numerical vectors, often embeddings, according to similarity and other filters.

In practice

An enterprise assistant retrieves relevant document passages while applying access controls and metadata filters.

Generative AILink to this term
Vendor Due DiligenceThe assessment of a supplier's capabilities, limitations, controls, terms, and dependencies before and during engagement.

In practice

Review evidence relevant to your use case, including data handling, evaluation, service continuity, and exit arrangements.

Business & deliveryLink to this term
Vendor Lock-InDependence on a supplier that makes moving to an alternative difficult or costly.

In practice

Consider data export, model portability, proprietary integrations, contract terms, and the work required to replace the service.

Business & deliveryLink to this term
Word Error Rate (WER)A speech-recognition metric calculated from word substitutions, deletions, and insertions relative to the number of words in a reference transcript.

In practice

A low average WER can still hide serious errors in critical names, amounts, or instructions.

Machine learningLink to this term
Workflow RedesignChanging the sequence of tasks, responsibilities, handoffs, and controls to improve how work gets done with AI.

In practice

Redesign the complete service process, including review and exception handling, rather than measuring only the speed of drafting.

Business & deliveryLink to this term
Zero-Shot PromptingAsking a model to perform a task without providing demonstrations of that task in the prompt. The model still relies on what it learned during training.

In practice

Request a summary by describing the desired audience and format, without including an example summary.

Generative AILink to this term
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