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AI Terminology Explained In Plain Language

Glossary of common AI terms with plain language explanations

AI Terminology Explained in Plain Language (For Non-Techies!)

Whether you're trying out AI tools like ChatGPT or just dipping your toe into the tech pool, you’ve probably run into some alphabet soup: NLP, ML, LLM, API...

Take a breath. I’ve got you. 🧘‍♀️ This post will translate the most common AI terms into simple, plain-English definitions—with small business examples so it all clicks.

Foundational Terms (The Stuff Everyone Gets Confused About)

Artificial Intelligence (AI)

What it means:
A fancy way of saying “machines that can think or act like humans.”

Real-life example:
Your email’s spam filter? That’s AI. So is the way Netflix recommends your next binge.

Machine Learning (ML)

What it means:
AI that learns from data—like trial and error, but for computers.

Example:
If you run an online store, ML might help suggest which products to show each visitor based on what they’ve looked at before.


 
 

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Deep Learning

What it means:
A type of machine learning that uses layered algorithms called neural networks (more on those in a sec) to learn really complex things.

Example:
Voice assistants like Siri or Alexa use deep learning to understand and respond to you.

Terms You’ve Probably Seen on AI Tool Websites

Natural Language Processing (NLP)

What it means:
The ability of AI to understand and respond to human language.

Example:
Chatbots on your website use NLP to answer customer questions—no human needed.

Neural Networks

What it means:
A system modeled after the human brain (but way less emotional). It's what powers deep learning.

Example:
Used in photo recognition, like when Facebook tags your friends for you.

Prompt Engineering

What it means:
The art of giving AI the right kind of instructions to get useful responses.

Example:
Instead of saying “write an email,” a better prompt would be: “Write a friendly follow-up email to a coaching client who missed a session.”

Large Language Models (LLMs)

What it means:
These are super-smart AI systems trained on massive amounts of text data.

Example:
ChatGPT is an LLM. It knows how to write everything from poems to business plans.

Behind-the-Scenes Tech Talk (Only What You Need to Know)

Algorithm

What it means:
A set of rules a computer follows to solve problems or make decisions.

Example:
Instagram’s algorithm decides which posts show up first in your feed.

API (Application Programming Interface)

What it means:
A bridge that lets one software talk to another.

Example:
When your email platform connects to your CRM to personalize a campaign? That’s an API at work.

Training Data

What it means:
The info an AI tool learns from to get smart.

Example:
An AI tool trained on thousands of Etsy listings could help you write better product descriptions.

Bias in AI

What it means:
When the data an AI tool learns from is flawed or one-sided, the results might be too.

Example:
If an AI recruiting tool was trained mostly on resumes from men, it might unfairly favor male applicants.

Why This Matters for Small Business Owners

You don’t have to become a coder. But having a working vocabulary can help you:

  • Choose the right AI tools

  • Ask smarter questions

  • Get better results (and avoid tech headaches)

  • Feel more confident as a business owner navigating the AI boom

TL;DR – Speak AI Without Needing a Computer Science Degree

AI isn't magic. It’s math and logic wrapped in smart packaging. And once you speak a little of its language, you’ll see it’s here to help—not to replace you.

Curious how to actually use this knowledge in your biz? Join the Front Row AI Club—we break it all down with zero tech shame.


 
 

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