AI Business Glossary
No technical jargon. We explain complex AI terms in plain English, focusing on how they can help you make money.
LLM (Large Language Model)
Core AI ConceptsA type of artificial intelligence trained on massive amounts of text data to understand and generate human-like language.
Real-world example:
"ChatGPT and Claude are examples of LLMs."
Prompt Engineering
Prompt EngineeringThe skill of crafting clear, specific instructions (prompts) to get the best possible output from an AI model.
Real-world example:
"A prompt engineer can make ChatGPT write a high-converting sales email instead of just a generic letter."
RAG (Retrieval-Augmented Generation)
Core AI ConceptsA technique that grounds AI responses in a specific database of your own documents, preventing the AI from hallucinating or making things up.
Real-world example:
"We built a customer service bot using RAG to answer questions strictly from our company policy PDF."
API (Application Programming Interface)
Core AI ConceptsA way for two computer programs to talk to each other. AI APIs allow you to build ChatGPTs brain directly into your own apps or workflows.
Real-world example:
"I used the OpenAI API to automatically summarize incoming customer emails in a Google Sheet."
Midjourney
AI Image & VideoA highly popular, industry-leading AI image generator known for producing stunning, artistic, and highly aesthetic visuals.
Real-world example:
"Many Etsy sellers use Midjourney to generate beautiful digital wall art to sell."
Stable Diffusion
AI Image & VideoAn open-source AI image generator. Unlike Midjourney, it can be run locally on your own computer and offers extremely precise control over image generation.
Real-world example:
"Using ControlNet with Stable Diffusion, I can turn a rough doodle into a masterpiece while keeping the exact pose."
Custom GPTs
Business & MonetizationA customized, mini-version of ChatGPT trained on your specific instructions and documents, which you can share or sell to others.
Real-world example:
"I built a Custom GPT for my accounting clients to automatically answer simple tax questions."
AI Automation Agency (AAA)
Business & MonetizationA business model where you offer to integrate AI tools (like chatbots or automated workflows) into other traditional businesses to save them money/time.
Real-world example:
"My AI Agency charges local dentists $1000/mo to run a 24/7 AI receptionist chatbot for booking appointments."
Faceless YouTube Automation
Business & MonetizationA popular monetization method where creators produce YouTube videos using AI for scriptwriting, voiceovers, and stock footage, without ever showing their face.
Real-world example:
"Her faceless channel about "Space Mysteries" earns $3k a month using AI-generated scripts and ElevenLabs voiceovers."
Hallucination
Core AI ConceptsWhen an AI model confidently generates false or fabricated information because it is predicting words instead of looking up facts.
Real-world example:
"The AI suffered a hallucination and invented a fake legal case that the lawyer submitted to court."
Few-Shot Prompting
Prompt EngineeringA prompting technique where you show the AI a few examples of exactly what you want before asking it to do the task.
Real-world example:
"Using few-shot prompting, I showed the AI three examples of sarcastic tweets before asking it to write a new one."
Token
Core AI ConceptsThe fundamental unit of text an AI reads. It is not necessarily a full word; short words are 1 token, but longer words might be split into 2-3 tokens. AI APIs charge by the token.
Real-world example:
"Generating a 1,000-word article cost my script about 1,500 tokens."
AIGC (AI-Generated Content)
Business & MonetizationAny form of content (text, images, audio, video) created entirely or partially by artificial intelligence systems.
Real-world example:
"My startup relies 100% on AIGC to run 15 different TikTok channels concurrently."
No-Code / Low-Code
Prompt EngineeringPlatforms that allow you to build fully functional software, apps, or complex automations using visual drag-and-drop interfaces instead of typing programming languages.
Real-world example:
"I used a no-code tool like Make.com to connect ChatGPT to my Gmail to auto-reply to clients."