Every AI word, explained with one story: you just hired a brilliant assistant who started this morning.

AI Words, Explained Simply

Meet Sam. Sam has read almost everything ever written, is scary fast, and is happy to help. Sam has also never heard of your company, can't see your inbox, and will confidently guess when unsure. Every word below is about one of three things: what Sam is, what you give Sam, or what you let Sam do.

What Sam is

AI

Sam. Software that learned from examples instead of being told rules.

Model

Sam's brain. There are many Sams; each one is a different model, and new ones come out every few months.

LLM

The kind of brain that's good with words. That's the Sam you chat with.

Effort

How long Sam thinks before answering. Same Sam, more or less time at the whiteboard. Turn it up for hard problems; leave it down for quick drafts.

Image, voice & video models

Sam's cousins who are good with pictures, sound, or video instead of words. Multimodal means one Sam who can do several.

Prompt

Whatever you say to Sam.

Response

Whatever Sam says back. It's made up fresh every time, so ask twice and you might get two slightly different answers.

Tokens

The word-pieces Sam counts in. Long documents cost more tokens. Only matters when you hit a limit.

Hallucination

Sam confidently making something up. Not lying, just filling a gap. Happens most when Sam doesn't have the facts.

Knowledge cutoff

The day Sam stopped reading. Anything after that, Sam has to look up or be told.

What you give Sam

This is where most of the magic is. Not in how you ask.

Context

Everything Sam can see right now: your message, the conversation, any files, any saved notes. If it's not in view, Sam doesn't know it.

Instructions

A sticky note on Sam's desk that's there every day: who you are, how you like things, what to never do.

Project

A folder for one area of your business. Open the folder and Sam already has the background. No re-explaining.

Workspace

The office Sam works in. Who's on the team, what Sam is allowed to plug into, whether your files stay private. The settings that gate everything else.

Memory

Things Sam remembers about you between conversations. You can read and erase the list.

Grounding

Making Sam answer from your documents instead of from general knowledge. "Look it up in this before you answer."

Skill

A how-we-do-it-here sheet Sam reads when a matching job comes up. Your SOP, written for Sam.

What you let Sam do

Tool

Something Sam can use besides talking: search the web, read a file, send an email.

Connector

A key to one of your services: Gmail, QuickBooks, Drive. You hand it over once; after that Sam can look inside.

MCP

The shape of the keyhole. A standard so any key fits any Sam. You'll see the letters; you won't need to touch it.

API

How software talks to software. It's what's behind every connector. Comes up when someone builds you something custom.

Read vs. write

Read: Sam can look. Write: Sam can change things: send, post, pay, delete. Give read first. Give write one thing at a time.

Agent

Sam working a whole task alone: figure out the next step, use a tool, check the result, keep going. A chat answers; an agent does.

Autonomous

Sam doing all that with nobody checking. A dial, not a switch. Turn it up slowly.

Human in the loop

You, checking before anything real happens. Where you should be for anything that sends, pays, or posts.

Workflow

A job you've written down so Sam does it the same way every time.

Scheduled task

A workflow on a timer. "Every Friday at 4, check this." Good for things you forget. Bad as a weekly report nobody reads.

Trigger

A workflow that starts when something happens: an email arrives, a form comes in.

Guardrails

The lines Sam won't cross. Some built in, some you write. "Drafts only" is a guardrail.

Prompt injection

A stranger hiding instructions in something Sam reads, hoping Sam obeys them. One more reason Sam shouldn't be able to send email unsupervised.

Harness

Everything around Sam: the sticky notes, the folders, the keys, the timers, the rules. Sam is the engine. The harness is the rest of the car. When AI works great for someone else and not for you, it's the harness, not Sam.

One line to remember

Don't get better at talking to Sam. Get better at setting up Sam's desk.