AI Agent Choices
AI Agent Glossary
Plain-English definitions for 15 key terms.
A
AI Agent
A software program that can perform tasks autonomously — meaning it can make decisions, take actions, and complete multi-step goals without constant human guidance. Unlike simple chatbots that only respond to questions, AI agents proactively work toward objectives.
API (Application Programming Interface)
A way for two software programs to talk to each other. Think of it as a menu at a restaurant — the API lists what you can ask for, and the software delivers it. Most AI tools connect to other services via APIs.
C
Credit System
A pricing model where you buy a set number of 'credits' each month, and each action the AI performs uses up some credits. Simple tasks might cost 1 credit, while complex ones could cost 50-500 credits. Watch out for unexpected costs.
H
Human-in-the-Loop
A system design where AI handles most of the work but pauses at critical moments to get human approval before proceeding. This prevents AI errors from reaching customers and gives you control over important decisions.
I
Integration
A connection between two software tools that lets them share data and trigger actions automatically. For example, connecting your email to your CRM so new contacts are added automatically.
L
LLM (Large Language Model)
The AI 'brain' behind tools like ChatGPT, Claude, and others. It's trained on vast amounts of text and can understand and generate human language. Different models (GPT-4, Claude, Llama) have different strengths.
M
Multi-Agent System
A setup where multiple AI agents work together as a team, each handling different parts of a task. One agent might research, another writes, and a third reviews — similar to how a human team divides work.
N
No-Code
A way to build software or automations without writing any programming code. You use visual tools like drag-and-drop interfaces, forms, and menus instead. Great for non-technical users.
P
Prompt
The instruction or question you give to an AI tool. The quality of your prompt directly affects the quality of the AI's response. Good prompts are specific, clear, and include context about what you need.
Prompt Injection
A security attack where hidden malicious instructions on websites or in data trick an AI agent into doing something harmful. When an AI agent reads a webpage containing hidden commands, it might follow those commands instead of your instructions.
R
RAG (Retrieval-Augmented Generation)
A technique that lets AI look up information from your own documents or databases before answering questions. This makes AI responses more accurate and specific to your business, instead of relying only on its general training data.
S
Self-Hosted
Running software on your own servers instead of using the company's cloud service. This gives you more control over your data and can be cheaper at scale, but requires technical knowledge to set up and maintain.
V
Vendor Lock-in
When switching away from a tool becomes very difficult because all your processes, data, and workflows are deeply tied to it. The more you build on one platform, the harder (and more expensive) it is to leave.
W
Workflow
A series of automated steps that happen in sequence. For example: 'When a form is submitted → create a contact in CRM → send a welcome email → notify the sales team.' Each step triggers the next.
Web Scraping
Automatically extracting data from websites. AI agents can visit web pages, read the content, and collect specific information like prices, contact details, or product listings into structured formats.