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. 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 — 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.