Reference
AI & Automation Glossary
Every term you need to understand AI, automation, and business technology. Written in plain English.
AI & Machine Learning
Artificial Intelligence (AI)
Software that can perform tasks that normally require human intelligence, such as understanding language, recognising patterns, and making decisions.
Large Language Model (LLM)
An AI system trained on vast amounts of text data that can understand and generate human language. Examples include Claude, GPT, and Gemini.
Machine Learning
A type of AI where systems learn and improve from data without being explicitly programmed for every scenario.
Natural Language Processing (NLP)
The ability of software to understand, interpret, and generate human language in a useful way.
Prompt
The text instruction you give to an AI model to tell it what to do. A well-written prompt leads to better, more relevant output.
Prompt Engineering
The practice of crafting effective prompts to get the best results from AI models. Includes techniques like few-shot examples and chain-of-thought reasoning.
Fine-Tuning
Training an existing AI model on your own data to make it better at a specific task, like classifying your customer support tickets.
Tokens
The basic units that AI models use to process text. Roughly equivalent to words or word fragments. Pricing and limits are often measured in tokens.
Context Window
The maximum amount of text an AI model can process in a single conversation. Larger context windows allow the model to consider more information at once.
Hallucination
When an AI model generates information that sounds plausible but is factually incorrect. A known limitation of current language models.
RAG (Retrieval-Augmented Generation)
A technique that gives AI models access to external data sources so they can provide more accurate, up-to-date answers instead of relying solely on training data.
Embedding
A way of representing text as numbers so that similar meanings are close together. Used for semantic search, recommendations, and clustering.
Computer Vision
AI that can analyse and understand images and videos. Used for tasks like reading receipts, processing documents, and quality inspection.
Sentiment Analysis
Using AI to determine whether text expresses a positive, negative, or neutral opinion. Commonly used to analyse customer reviews and feedback.
Generative AI
AI systems that can create new content like text, images, code, and audio. Distinct from analytical AI that classifies or predicts.
Automation
Workflow Automation
Using software to perform repetitive business tasks automatically, such as sending follow-up emails, generating reports, or processing invoices.
Business Process Automation (BPA)
Automating complex, multi-step business processes across departments. Goes beyond simple task automation to redesign entire workflows.
Robotic Process Automation (RPA)
Software bots that mimic human actions like clicking, typing, and copying data between applications. Often used for legacy systems without APIs.
Trigger
An event that starts an automated workflow. Examples include receiving an email, a form submission, a scheduled time, or a file being uploaded.
Action
A step performed by an automation after it is triggered. Examples include sending an email, creating a spreadsheet row, or calling an API.
Pipeline
A sequence of automated steps that data passes through, with each step transforming or enriching it. Common in data processing and content generation.
Cron Job
A scheduled task that runs automatically at set intervals, like every hour, daily, or weekly. Named after the Unix scheduling system.
Webhook
A way for one application to send real-time data to another when something happens. Like a push notification between systems.
ETL (Extract, Transform, Load)
The process of pulling data from one source, converting it into a usable format, and loading it into another system. A foundational automation pattern.
No-Code / Low-Code
Tools that let you build automations and applications with minimal or no programming. Examples include Zapier, Make, and Bubble.
Orchestration
Coordinating multiple automated tasks and services to work together as a unified workflow, handling dependencies, errors, and retries.
APIs & Integration
API (Application Programming Interface)
A way for two pieces of software to communicate with each other. APIs let you connect tools, pull data, and trigger actions programmatically.
REST API
The most common type of web API. Uses standard HTTP methods (GET, POST, PUT, DELETE) to create, read, update, and delete data.
API Key
A unique code that identifies your application when making API requests. Like a password for programmatic access to a service.
OAuth
A standard protocol that lets users grant applications limited access to their accounts without sharing passwords. Used by Google, GitHub, and others.
JSON
A lightweight data format used to exchange information between systems. Most APIs send and receive data in JSON format.
Rate Limiting
Restrictions on how many API requests you can make in a given time period. Prevents abuse and ensures fair usage across all users.
SDK (Software Development Kit)
A collection of tools, libraries, and documentation that makes it easier to integrate with a specific service or platform.
Middleware
Software that sits between two systems and handles communication, data transformation, or authentication between them.
AI Tools & Platforms
Claude
An AI assistant built by Anthropic. Known for being helpful, harmless, and honest. Available via API and through Claude Code for building automations.
Claude Code
A command-line tool from Anthropic that lets you build software and automations by describing what you want in plain English.
GPT
A family of large language models built by OpenAI. Stands for Generative Pre-trained Transformer. Powers ChatGPT and many API integrations.
Zapier
A no-code automation platform that connects over 6,000 apps. Create automated workflows (called Zaps) using triggers and actions without writing code.
Make (formerly Integromat)
A visual automation platform for building complex workflows. Offers more flexibility than Zapier with branching, loops, and data transformation.
n8n
An open-source workflow automation tool you can self-host. Offers full control over your data and integrations with a visual builder.
Data & Analytics
Web Scraping
Automatically extracting data from websites. Used for competitive research, lead generation, price monitoring, and data collection.
CSV (Comma-Separated Values)
A simple file format for storing tabular data. Widely used for importing and exporting data between spreadsheets, databases, and applications.
Data Enrichment
Enhancing existing data by adding information from external sources. For example, adding company size and industry to a list of email addresses.
OCR (Optical Character Recognition)
Technology that converts images of text into machine-readable text. Used for digitising receipts, invoices, and scanned documents.
PDF Parsing
Extracting structured data from PDF documents. Essential for automating tasks involving invoices, contracts, and financial statements.
Structured Data
Data organised in a predictable format with defined fields, like a spreadsheet or database table. Easier for machines to process than unstructured text.
Unstructured Data
Data without a predefined format, such as emails, documents, images, and social media posts. AI has made it possible to extract insights from unstructured data at scale.
Business & Strategy
ROI (Return on Investment)
A measure of profitability. In automation, it compares the cost of building and maintaining a workflow against the time and money it saves.
Digital Maturity
How advanced a business is in adopting digital tools and processes. Ranges from manual operations to fully automated, data-driven workflows.
SaaS (Software as a Service)
Software delivered over the internet on a subscription basis. You access it through a browser instead of installing it on your computer.
Churn
The rate at which customers stop using a product or cancel subscriptions. Reducing churn is a common goal for automation workflows.
Lead Scoring
Assigning a numerical value to each lead based on their likelihood to become a customer. AI can automate this using behavioural data and patterns.
CRM (Customer Relationship Management)
Software for managing interactions with customers and prospects. Common CRMs include HubSpot, Salesforce, and Pipedrive.
KPI (Key Performance Indicator)
A measurable value that shows how effectively a business is achieving its goals. Automation can track and report on KPIs automatically.
Development & Infrastructure
CLI (Command Line Interface)
A text-based interface for interacting with software by typing commands. Claude Code is a CLI tool for building automations.
Node.js
A runtime environment that lets you run JavaScript on a server. Widely used for building automation scripts, APIs, and backend services.
Serverless
A cloud computing model where you run code without managing servers. You pay only for the compute time you use. Ideal for lightweight automations.
Docker
A platform for packaging applications into containers that run consistently across different environments. Useful for deploying automation workflows.
Git
A version control system that tracks changes to code over time. Lets you collaborate, revert mistakes, and manage multiple versions of your automation scripts.
Environment Variables
Configuration values stored outside your code, like API keys and database passwords. Keeps sensitive information secure and separate from your codebase.
Deployment
The process of making your application or automation available for use, typically by pushing code to a server or cloud platform like Vercel or AWS.
Email & Communication
Transactional Email
Automated emails triggered by user actions, such as order confirmations, password resets, and scan results. Different from marketing emails.
Email Parsing
Extracting specific data from incoming emails automatically. For example, pulling order details from supplier emails into a spreadsheet.
SMTP
Simple Mail Transfer Protocol. The standard protocol for sending emails. Services like Resend and SendGrid provide SMTP APIs for automated email delivery.
Drip Campaign
A series of automated emails sent on a schedule. Used for onboarding new users, nurturing leads, and re-engaging inactive customers.
Security & Compliance
Encryption
Converting data into a coded format so only authorised parties can read it. Essential for protecting sensitive business data in transit and at rest.
GDPR
The General Data Protection Regulation. EU law that governs how businesses collect, store, and process personal data. Applies to any business serving EU customers.
Two-Factor Authentication (2FA)
A security method that requires two forms of verification to access an account. Typically a password plus a code from your phone.
SSO (Single Sign-On)
A system that lets users log in to multiple applications with one set of credentials. Reduces password fatigue and improves security.