AI Glossary · 82 terms and growing

AI Glossary

Learn the language of Artificial Intelligence with The Tool Money Lab's growing library of clear, jargon-free explanations — written for founders, operators and curious professionals.

Featured concepts
Beginner7 min read

AI Agent

An AI agent is a language-model-powered system that plans and executes multi-step tasks by choosing which tools or APIs to call in order to reach a user-defined goal.

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Beginner5 min read

AI Hallucination

A hallucination is an LLM output that is fluent and plausible but factually incorrect or unsupported by any reliable source.

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Beginner5 min read

Context Window

The context window is the token budget an LLM can read and write within a single request, covering the prompt, retrieved data, previous turns and the response itself.

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Intermediate5 min read

EEAT

EEAT is a quality assessment framework — Experience, Expertise, Authoritativeness and Trustworthiness — used to guide how content, and the sites and authors producing it, are evaluated for credibility.

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Intermediate6 min read

Generative Engine Optimisation

GEO is the set of editorial and technical practices that increase the likelihood a page is retrieved, quoted or cited by generative AI systems when they answer a user's question.

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Beginner7 min read

LLM

An LLM is a neural network trained on very large text datasets to predict the next token in a sequence, which enables general-purpose language understanding and generation.

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Intermediate6 min read

MCP (Model Context Protocol)

The Model Context Protocol is an open standard for connecting AI models to external tools, data and services through a shared JSON-RPC interface.

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Beginner6 min read

Prompt Engineering

Prompt engineering is the discipline of designing inputs to a language model so its outputs are accurate, useful and repeatable.

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Most popular
Beginner7 min read

AI Agent

An AI agent is a language-model-powered system that plans and executes multi-step tasks by choosing which tools or APIs to call in order to reach a user-defined goal.

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Beginner4 min read

Backlink

A backlink is a link from a page on one website to a page on a different website, used by search engines as one signal of the linked page's credibility and relevance.

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Intermediate6 min read

Generative Engine Optimisation

GEO is the set of editorial and technical practices that increase the likelihood a page is retrieved, quoted or cited by generative AI systems when they answer a user's question.

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Beginner5 min read

Kanban

Kanban is a visual workflow management method that represents tasks as cards moving through columns on a board, with limits placed on work-in-progress to expose bottlenecks and keep flow steady.

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Beginner7 min read

LLM

An LLM is a neural network trained on very large text datasets to predict the next token in a sequence, which enables general-purpose language understanding and generation.

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Beginner5 min read

OCR

OCR is a computer vision technique that identifies characters within an image and converts them into digital, machine-readable text that can be searched, edited or processed by other software.

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Beginner6 min read

Prompt Engineering

Prompt engineering is the discipline of designing inputs to a language model so its outputs are accurate, useful and repeatable.

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Intermediate8 min read

Retrieval-Augmented Generation (RAG)

Retrieval-Augmented Generation is a pattern in which relevant documents are retrieved from an external source and injected into an LLM's prompt so the model can answer with grounded, up-to-date, private information.

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Newest entries
Intermediate6 min read

Prompt Chaining

Prompt chaining is a prompting strategy that splits one large task into a sequence of smaller prompts, feeding each step's output forward as the next step's input.

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Beginner5 min read

System Prompt

A system prompt is a hidden or fixed instruction set passed to a language model that establishes its persona, rules and constraints before any user input is processed.

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Intermediate6 min read

Function Calling

Function calling is a feature of modern language models that allows them to output a structured request to invoke a predefined function, with the calling application executing it and returning the result to the model.

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Beginner5 min read

Vision Model

A vision model is a neural network trained to process and interpret visual data, such as photographs, screenshots or diagrams, often paired with a language model so it can describe or reason about that visual content in text.

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Intermediate5 min read

SLM

An SLM is a language model built with a smaller parameter count and training footprint than large flagship models, optimised for efficiency, low latency and deployment on limited hardware rather than maximum general capability.

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Intermediate5 min read

Temperature

Temperature is a numerical parameter, typically between 0 and 2, that adjusts how a language model samples from its predicted probabilities for the next word, controlling the balance between predictability and variation in its output.

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Recently updated
Intermediate6 min read

Prompt Chaining

Prompt chaining is a prompting strategy that splits one large task into a sequence of smaller prompts, feeding each step's output forward as the next step's input.

Read definition →
Beginner5 min read

System Prompt

A system prompt is a hidden or fixed instruction set passed to a language model that establishes its persona, rules and constraints before any user input is processed.

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Intermediate6 min read

Function Calling

Function calling is a feature of modern language models that allows them to output a structured request to invoke a predefined function, with the calling application executing it and returning the result to the model.

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Beginner5 min read

Vision Model

A vision model is a neural network trained to process and interpret visual data, such as photographs, screenshots or diagrams, often paired with a language model so it can describe or reason about that visual content in text.

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Intermediate5 min read

SLM

An SLM is a language model built with a smaller parameter count and training footprint than large flagship models, optimised for efficiency, low latency and deployment on limited hardware rather than maximum general capability.

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Intermediate5 min read

Temperature

Temperature is a numerical parameter, typically between 0 and 2, that adjusts how a language model samples from its predicted probabilities for the next word, controlling the balance between predictability and variation in its output.

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Gaming Networking Glossary

For gaming networking, latency optimisation, ping reduction and competitive networking concepts, visit our dedicated Gaming Networking Glossary — a beginner-first learning centre covering latency, routing, diagnostics and optimisation.

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Beginner concepts
Beginner5 min read

ACH

ACH is a US batch-based electronic funds transfer network, operated under NACHA rules, that moves money between bank accounts for payroll, bill payments, direct debits and vendor payouts.

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Beginner7 min read

AI Agent

An AI agent is a language-model-powered system that plans and executes multi-step tasks by choosing which tools or APIs to call in order to reach a user-defined goal.

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Beginner4 min read

AI Automation

AI automation is the use of AI models to perform tasks — usually language, vision or decision tasks — that were previously done manually because they required judgement.

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Beginner5 min read

AI Hallucination

A hallucination is an LLM output that is fluent and plausible but factually incorrect or unsupported by any reliable source.

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Beginner4 min read

AI Tokens

A token is the unit of text an LLM processes — typically 3-4 characters or roughly three-quarters of an English word. Prompts, replies and pricing are all measured in tokens.

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Beginner4 min read

AI Workflow

An AI workflow is an orchestrated sequence of steps in which one or more AI models cooperate with tools, APIs and human approvals to complete a task.

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Beginner4 min read

API

An API (Application Programming Interface) is a defined set of endpoints and rules that lets one program request functionality or data from another.

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Beginner4 min read

Backlink

A backlink is a link from a page on one website to a page on a different website, used by search engines as one signal of the linked page's credibility and relevance.

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Intermediate & advanced
Intermediate6 min read

Agentic AI

Agentic AI refers to systems where a language model autonomously decomposes goals, selects tools and executes multi-step actions with minimal human intervention.

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Intermediate5 min read

Chain-of-Thought Prompting

Chain-of-thought (CoT) prompting is a technique where the model is asked to produce intermediate reasoning steps before its final answer, improving performance on multi-step problems.

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Intermediate7 min read

CI/CD

CI/CD is a set of automated practices and tools that build, test and release software every time code changes, reducing the manual effort and risk involved in shipping updates.

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Intermediate6 min read

Container

A container is a standardised, isolated unit of software that packages an application together with its dependencies, sharing the host operating system's kernel rather than running a full separate operating system.

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Intermediate5 min read

Core Web Vitals

Core Web Vitals are a defined set of metrics measuring real-world page loading speed, interactivity responsiveness and visual layout stability, used as one signal in search engine page-quality assessments.

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Intermediate5 min read

Crawl Budget

Crawl budget is the combination of crawl rate limit (how fast a search engine can fetch pages without overloading the server) and crawl demand (how many pages the engine wants to fetch based on perceived value) for a given site.

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Intermediate5 min read

DNS Leak

A DNS leak is a failure mode in which DNS lookup requests — the translations of domain names into IP addresses — are sent to a default, unencrypted DNS server outside the VPN tunnel, revealing browsing destinations despite an active VPN connection.

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Intermediate6 min read

Docker

Docker is a software platform that lets developers build, distribute and run applications inside containers, providing a consistent runtime environment across different machines.

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