AI & automation glossary

Vendor-speak, translated. No definition here requires knowing another definition to understand.

Core terms

AI agent. Software that takes a goal, breaks it into steps, and uses your tools (calendar, CRM, email) to complete it, with guardrails. See What an “AI agent” actually is (and isn’t).

LLM (large language model). The engine behind modern AI: a system trained on enormous amounts of text that’s very good at reading, writing, and summarizing language. ChatGPT and Claude are products built on LLMs.

Automation. Any setup where software does a repeatable task without a person driving each step. It doesn’t require AI: a rule like “when a form is submitted, create a contact” is automation.

Workflow. A chain of automated steps: form submitted → contact created → owner notified → follow-up scheduled. Most useful business automation is workflows, not chat.

CRM (customer relationship management). The system of record for your contacts, leads, and deals. If your “CRM” is a spreadsheet plus memory, automation gives you the most value here first.

Integration. A connection between two tools so they share data automatically. “Does it integrate with X?” means “can it read from and write to X without copy-paste?”

API. The counter at the back of an application where other software can ask for things. When two tools “integrate,” they’re talking through APIs.

Webhook. A tap on the shoulder between systems: one tool notifying another the moment something happens (“a new form just came in”), instead of the other tool checking every few minutes.

Terms that need a skeptical eye

“Trained on your data”. Usually means the AI is given your documents to reference, not retrained. That’s fine, and it’s the right approach for most businesses, but know what you’re buying.

“Fully autonomous”. Marketing. Well-run systems keep human approval on anything involving money, legal commitments, or your reputation.

“Hallucination”. When an AI states something false with confidence. Managed by grounding the AI in your real data and keeping approval steps, not by hoping.

Prompt. The instructions given to an AI. “Prompt engineering” is the craft of writing instructions specific enough to get consistent results. Related: Teaching an AI your way of working.

Legal & compliance corner

CAN-SPAM. The US law governing commercial email: honest headers, a working unsubscribe, a physical postal address. Covered in Cold email, legally: CAN-SPAM in plain English.

TCPA. US law restricting calls and texts to consumers. If a vendor pitches automated SMS outreach and doesn’t mention consent, walk away.

Opt-in / consent. Documented permission to contact someone. The foundation every legitimate outreach system is built on.