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AI in 12 terms

Twelve words are enough to understand what everyone else is talking about. They are arranged in the order in which they explain one another: each one builds on the previous one, and together they climb the four floors.

Beginners, no prerequisites · 12 terms · 25 minutes · final quiz

The sequence

0 / 12 seen
  1. Generative AIFloor 1 · The Modela solid block on its own: the prediction machineSystems that produce text, images or sound, instead of only classifying or predicting a number.
  2. ModelFloor 1 · The Modela solid block on its own: the prediction machineThe engine: a machine trained once and for all, which predicts what comes next in a text.
  3. Large language model (LLM)Floor 1 · The Modela solid block on its own: the prediction machineA model trained on enormous quantities of text. It handles language remarkably well, without knowing anything about the world.
  4. TokenFloor 1 · The Modela solid block on its own: the prediction machineThe unit the model manipulates: a piece of a word. Length and cost are both measured in tokens.
  5. PromptFloor 2 · The Harnessthe block and its bolted-on plates: what gets added to itWhat you write to the system. How you word it changes the answer, because it changes what the model has in front of it.
  6. ContextFloor 2 · The Harnessthe block and its bolted-on plates: what gets added to itEverything the model has in front of it at the moment it answers: your question, the history, the documents added.
  7. HallucinationFloor 1 · The Modela solid block on its own: the prediction machineA false answer stated with confidence. It is not a breakdown: it is the normal behaviour of a machine that predicts what is plausible.
  8. AssistantFloor 2 · The Harnessthe block and its bolted-on plates: what gets added to itA product that waits for your message and answers. The model is inside it, but the model is not what you are using.
  9. ToolFloor 2 · The Harnessthe block and its bolted-on plates: what gets added to itWhat the system is allowed to do outside of text: read a file, call a service, send a message.
  10. AgentFloor 3 · The Agentthe block caught in a loop: it starts again until it gets thereA system that pursues a goal across several steps and chooses the next one itself.
  11. Automation or augmentationFloor 4 · The Organisationa mosaic: AI is only one tile among manyReplacing a task, or equipping the person who does it. That choice decides everything else.
  12. Shadow AIFloor 4 · The Organisationa mosaic: AI is only one tile among manyAI used inside an organisation without anyone having decided on it, or set any bounds around it.

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What to remember

The summary

There is an engine, and there is everything built around it

The model predicts text, with no memory and no access to the world. Everything else (the instructions, the documents, the tools, the limits) is ordinary software installed around it. Most arguments about “AI” are in fact about what has been built around the engine, not about the engine itself.

Hallucination is a property, not a defect to be fixed

A machine that predicts the most plausible continuation will sometimes produce something plausible and false. You do not remove that behaviour: you set bounds around it, by giving the model the right documents to read and by checking what matters.

An assistant answers, an agent pursues

As long as you prompt again at every step, you are using an assistant. The day the system chains several steps on its own towards a goal, the nature of the problem has changed: cost, monitoring and stopping points become subjects in their own right.

The question that decides is not a technical one

Automating a task or equipping the person who does it: that choice commits skills, responsibilities and trust. And if nobody asks it, it gets settled anyway, silently, by undeclared use.

The final quiz

3 questions · click your answer

Level 1 · Recognise

Why does a language model sometimes invent a reference that does not exist?

Level 1 · Recognise

You paste a long document into a conversation, then close the tab. What is left to the system?

Level 2 · Distinguish

In your team, several people use a consumer assistant to process client documents, without this having been planned. What is this called?

v2026-08 · pathCite this path
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Path · AI in 12 terms
v2026-08 · /en/paths/ai-in-12-terms

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