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Plain-English glossary

AI employee words an owner should actually know

Enough vocabulary to buy, manage, and question the work. No engineering degree required.

Published August 24, 2026 · Reviewed against current product boundaries

The job

AI employee

Software given a recurring job, business context, tools, rules, and a way to show what it completed. The phrase does not make software a legal employee.

AI agent

Software that can choose and use tools to pursue an assigned result. The useful question is which tools, which result, and which limits.

Workflow

The repeatable path from a start signal to a completed result, including exceptions and approvals.

Trigger

The event or schedule that starts a job: a new email, a meeting ending, a form arriving, or Friday at 4 p.m.

Task

A specific unit of work with a finish line, owner, and status.

Recurring job

Work that happens on a schedule or whenever the same kind of event occurs.

Information

Context

The approved facts, messages, records, and instructions needed for the current job.

Memory

Business context saved for later work inside the permitted account and scope.

System of record

The place the business treats as authoritative, such as its accounting system, CRM, or signed contract file.

Grounding

Using approved business records or sources to shape an answer instead of relying only on a model’s general training.

Retrieval

Finding relevant approved information before preparing an answer or action.

Hallucination

A confident-looking statement or detail that is unsupported or wrong.

Tools and actions

Integration

A controlled connection between the AI product and another business tool.

Permission

A right granted to read, create, change, send, share, or delete something.

OAuth

A provider sign-in method that lets you grant specific access without handing the application your password.

Tool call

A request from the AI system to use a connected function, such as creating a draft or reading a calendar.

Read action

Looking up information without changing it.

Write action

Creating, changing, sending, sharing, or deleting information.

Control and proof

Human in the loop

A person reviews or decides at a defined point in the workflow.

Approval gate

A control that pauses a covered action until an authorized person approves or rejects it.

Audit trail

A reviewable record of proposed actions, decisions, and completed work.

Evaluation

A repeatable test of whether the job is accurate, safe, useful, and complete.

Edge case

An unusual but plausible situation that exposes whether the job knows when to stop or adapt.

Escalation

Handing the work to a person because information is missing, rules conflict, or the consequence exceeds the assignment.

Incident

An event that harmed or could have harmed confidentiality, integrity, availability, customer trust, or business operations.

The model

Model

The underlying system that interprets instructions and produces text, images, audio, or decisions used by the product.

Prompt

Instructions or context sent to the model for a particular step.

Token

A unit providers use to measure model input and output. It affects cost and limits but rarely belongs in an owner’s job description.

Fine-tuning

Further training a model on selected examples. It is different from giving a product current business context or memory.

Temperature

A technical setting that affects output variation. Lower does not guarantee truth.