AI Garage Glossary

AI Jargons, Simplified

Understand AI terms with real-world use cases and simple explanations.

Showing 12 of 12 terms

Large Language Model

LLM

A machine learning model trained on large volumes of text to understand and generate natural language.

Use Cases

  • Chatbots
  • Drafting emails and content
  • Code generation assistants

ELI5

Like a very advanced autocomplete that can hold a conversation.

Why it matters: It powers most modern AI assistants used in daily business workflows.

#beginner#chatgpt#language-model

Prompt Engineering

Prompting

The practice of structuring instructions and context to get reliable, high-quality output from AI systems.

Use Cases

  • Better support bot replies
  • Consistent report generation
  • Task-specific AI workflows

ELI5

It is how you ask the AI the right way so it gives better answers.

Why it matters: Good prompts reduce rework, errors, and hallucinations.

#beginner#instructions#quality

Token

Beginner

A chunk of text processed by an AI model. Pricing, limits, and context windows are often token-based.

Use Cases

  • Estimating API cost
  • Managing context length
  • Optimizing prompt size

ELI5

Think of tokens like tiny word pieces the AI counts and reads.

Why it matters: Token usage directly affects speed, cost, and model performance.

#beginner#pricing#context-window

Embeddings

Machine Learning

Numeric vector representations of text, images, or other data that capture semantic meaning for retrieval and similarity search.

Use Cases

  • Semantic search
  • Recommendation systems
  • RAG document retrieval

ELI5

A way to turn text into numbers so AI can compare meaning, not just exact words.

Why it matters: Embeddings are the backbone of high-quality knowledge retrieval.

#vector#retrieval#search

Fine-tuning

Machine Learning

Additional training on domain-specific examples to adapt a base model for a particular task or style.

Use Cases

  • Brand voice adaptation
  • Domain-specific classification
  • Custom support workflows

ELI5

Teaching an already-smart AI your specific way of working.

Why it matters: Fine-tuning can improve consistency when prompts alone are not enough.

#customization#model-training#enterprise

Hallucination (AI)

LLM

When an AI model generates confident but incorrect or fabricated output.

Use Cases

  • Risk reviews in legal/finance
  • Fact-checking pipelines
  • Human approval workflows

ELI5

The AI sounds sure, but it made things up.

Why it matters: Unchecked hallucinations can cause trust, compliance, and business issues.

#risk#safety#beginner

Neural Network

Machine Learning

A model architecture inspired by neurons, built from layers that learn patterns from data.

Use Cases

  • Image recognition
  • Speech processing
  • Forecasting and classification

ELI5

A layered pattern-finder that gets better by learning from examples.

Why it matters: Most modern AI systems are built on neural network architectures.

#beginner#deep-learning#model

API

Beginner

An Application Programming Interface lets software systems communicate with each other through structured requests.

Use Cases

  • Integrating AI into products
  • Automated data exchange
  • Backend workflow orchestration

ELI5

A software messenger that lets one app ask another app to do something.

Why it matters: APIs are how AI moves from demos into real product workflows.

#integration#backend#developer

RAG (Retrieval-Augmented Generation)

LLM

A pattern where an LLM first retrieves relevant documents, then uses them to generate more grounded answers.

Use Cases

  • Internal knowledge assistants
  • Policy Q&A
  • Customer support answers

ELI5

The AI checks notes before answering so it is less likely to guess.

Why it matters: RAG improves factuality and makes answers easier to trace to sources.

#retrieval#knowledge-base#grounding

Multimodal AI

LLM

AI systems that understand or generate across multiple data types like text, image, audio, and video.

Use Cases

  • Image captioning
  • Voice assistants
  • Document + screenshot understanding

ELI5

AI that can work with more than just words, like pictures and sound too.

Why it matters: Multimodal workflows unlock richer product experiences and automation.

#vision#audio#generation

Context Window

Prompting

The amount of information (in tokens) a model can consider in one request.

Use Cases

  • Long document summarization
  • Conversation memory
  • Complex planning prompts

ELI5

How much the AI can keep in mind at one time.

Why it matters: Exceeding context limits causes truncation and quality loss.

#tokens#prompting#beginner

Inference

Machine Learning

The process of running a trained model to generate predictions or outputs.

Use Cases

  • Real-time chatbot responses
  • Batch classification jobs
  • Recommendation scoring

ELI5

When the trained AI actually does the task for you.

Why it matters: Inference performance drives user experience and infrastructure cost.

#latency#serving#production