AI glossary.
The terminology you need to know as you become more competent with AI. Explore each term to learn what it is, how it works, and why it matters to you.
Your computer
The basics of your computer: where files live, where apps run, and how you give it commands.
File and folder
- What it is
- A file is one saved thing: a document, a photo, a spreadsheet, a PDF. A folder is a container that holds files and other folders.
- How it works
- Your computer arranges folders inside folders, like a tree. Every file sits in exactly one spot, its path, and that spot is where you, an app or an AI agent goes to open it.
- Why it matters
- Everything an AI reads or makes is a file somewhere. If you can't find the file, you can't hand it to the AI, and you can't reuse what it made for you.
File path
- What it is
- The address of a file: the folders you would open, in order, to reach it.
- How it works
- Folder names are joined with slashes. Mac and Windows write it slightly differently, and a file in the cloud has a web link as its address.
- Why it matters
- When you tell an AI agent "read the survey in my Thesis sources folder", it turns that into a path. Knowing paths lets you point it at exactly the right file and tell it where to save the result.
/Users/you/Documents/Thesis/sources/survey-2024.pdfC:\Users\you\Documents\Thesis\sources\survey-2024.pdfhttps://drive.google.com/file/d/1a2B…/viewMarkdown
- What it is
- A plain-text file that uses a few symbols for formatting:
#for a heading,-for a bullet,**for bold. The file name ends in .md. - How it works
- The text is readable as it is, and apps that understand Markdown show it with real headings and bullets. There is no hidden formatting, so any program, and any AI, can read and write it.
- Why it matters
- It is the native language of AI tools. Instruction files, notes and skills are all Markdown, and asking for Markdown gets you output you can paste anywhere.
# Thesis plan - Read 21 sources - Tag by country **Due:** March 3
Thesis plan
- Read 21 sources
- Tag by country
Due: March 3
Local and cloud
- What it is
- Local means stored or running on the device in front of you. Cloud means stored or running on a company's computers, reached over the internet.
- How it works
- A local file lives on your laptop's drive. A cloud file (Google Drive, iCloud, Dropbox) lives on servers and syncs copies to your devices. A chat on claude.ai runs in the cloud; a coding agent on your laptop works on local files.
- Why it matters
- It decides what the AI can reach, what stays private, and what survives if your laptop dies. It also answers a common question: "Do I have to download my whole Google Drive?" Usually not. A connector can reach files where they live.
- Example
- A team's shared Google Drive is in the cloud, so a connector lets the AI search it where it sits, for anyone on the team. A pricing spreadsheet that lives only on one manager's laptop is local: the AI can reach it only through that laptop, so when the manager is on vacation, so is the data.
In the news
- Google Cloud says a 'power event' caused today's outageThe Register · Oct 20, 2026A power failure at one Google Cloud site in London took down banks, Royal Mail and BT at the same moment.
- Fortnite, Snapchat among major apps to go dark in global AWS outageReuters, via The Korea Times · Oct 20, 2025One Amazon cloud failure knocked out apps, banks and a government tax service: everyday work runs on a few providers.
Desktop, web and phone apps
- What it is
- Three ways to use the same service: an app installed on your computer, a website in your browser, or an app on your phone.
- How it works
- Your chats sync across all three. Only the desktop app can work with files on your computer, and the coding agent works best on a computer, where it can reach your files. The web and phone apps see only what you upload.
- Why it matters
- People get stuck because a feature "isn't there" when they are in the wrong app. Someone who joins a hands-on session from a tablet can chat, but can't build.
| Desktop | Web | Phone | |
|---|---|---|---|
| Chat | Yes | Yes | Yes |
| Same chats | Yes | Yes | Yes |
| Your files | Yes | Uploads | Uploads |
| Coding agent | Yes | Limited | Limited |
| Voice | Yes | Yes | Best |
Terminal
- What it is
- A text window where you type commands to your computer instead of clicking. Also called the command line. The programs you run there are called command-line tools.
- How it works
- You type a command, press Enter, and the computer prints the result.
ls, for example, lists the files in a folder. Coding agents can run in the terminal, and they use it themselves to read files and run programs. - Why it matters
- You don't need to become a programmer. But when an agent says it is "running a command", this is what it means, and seeing it once takes away the mystery.
~/Documents/Thesis $ ls notes.md sources ~/Documents/Thesis $ claude > Make a table of every PDF in sources Reading sources/survey-2024.pdf… Reading sources/unesco-report.pdf…
$; the agent's work shows up underneath.Meet the AI
What AI is, what it runs on, and how to get answers you can rely on.
Compute
- What it is
- Compute is the processing power that runs software. A CPU is the general-purpose chip in every computer. A GPU is a chip built to do huge amounts of simple math at the same time.
- How it works
- Underneath, an AI model is a vast pile of multiplication. GPUs do thousands of those calculations at once, so AI companies run their models in data centers full of them.
- Why it matters
- It explains why AI costs money, why there are usage limits, and why running a model on your own laptop needs a powerful machine.
- Example
- When a provider tightens usage limits at busy times, or a new model is slow on launch day, that is a compute shortage showing through. The same squeeze is why AI companies sign data-center deals worth tens of billions of dollars.
In the news
- Anthropic inks $3.4 billion deal for gas-powered data centersFortune · Nov 10, 2026An AI company buying its own power plants shows how much electricity running models takes.
- NVIDIA Announces Financial Results for Second Quarter Fiscal 2027NVIDIA · Aug 26, 2026$89 billion of data-center chips in one quarter, up 117% on the year: demand for GPUs keeps outrunning supply.
Model
- What it is
- The trained program at the center of an AI tool. Claude, GPT and Gemini are families of models. LLM, or large language model, is the technical name.
- How it works
- A model learned from enormous amounts of text to predict what comes next. Given your words, it picks a likely next word, adds it, and repeats until the answer is done. Running it takes a lot of compute.
- Why it matters
- It is a prediction engine, not a database or a person. That is why it is fluent, why it can be wrong with full confidence, and why what you give it to work with (its context) changes what you get.
- Example
- Ask "Is this launch plan good?" and you tend to get agreement with a few tweaks. Ask "What are the three weakest assumptions in this plan, and what would make each one fail?" and you get a real critique. The model continues the conversation you set up, so a leading question gets a leading answer.
Tokens
- What it is
- The small chunks of text a model reads and writes, often a piece of a word.
- How it works
- Your message is split into tokens before the model sees it. Usage limits, prices, and how much a model can hold at once (its context window) are all counted in tokens.
- Why it matters
- It explains why long chats and big files use up your limit faster, and why a large model "burns through tokens". Tokens measure usage; they are not something you own or save up.
- Example
- A 300-page annual report is roughly 200,000 tokens. Paste the whole thing in for every question and you can hit a daily limit by lunch; paste only the three sections you need and the same questions cost about a tenth as much.
In the news
- OpenAI doubles ChatGPT Pro usage limits after backlash over planned 50% cutBleepingComputer · Oct 29, 2026Usage limits decide what a subscription is worth, and they change.
- Claude Code users keep 50% higher limits until July 19Help Net Security · Jul 13, 2026Weekly caps on a coding agent are measured in tokens and move with demand.
Choosing a model
- What it is
- Most AI tools let you pick from several models, from small and fast to large and careful. Many also let you turn on reasoning, sometimes labeled "thinking": the model works through the problem step by step before it answers.
- How it works
- Bigger models are better at hard reasoning, long documents and detail, but they are slower and use up your limit faster. Smaller models are quick and cheap for simple jobs. Reasoning pays off on multi-step work, longer tasks and hard problems such as analysis, planning and debugging; it is slower and uses more tokens. Larger models reason better, and the largest often reason by default.
- Why it matters
- Matching the model to the task saves time and usage. Use a small model to rewrite an email; use a large one to check an 80-page report.
- Example
- A support team runs 5,000 incoming tickets a week through a small model just to tag them by topic and urgency, then sends only the 200 urgent ones to a large model to draft replies. The quality is high where it counts, at a fraction of the cost.
| Size | Good for | Trade-off |
|---|---|---|
| Small | Rewrites, sorting, quick summaries | Fast and cheap; misses detail |
| Medium | Most everyday work | The usual default |
| Large | Long documents, detail, building tools | Slower; uses your limit faster |
| Reasoning on | Multi-step analysis, planning, debugging | Slower still; many more tokens |
In the news
- Anthropic releases first frontier models since Amodei's call for slowdown as IPO buzz buildsCNBC · Nov 9, 2026The new top model is pitched at the hardest work, with the previous one still recommended for everyday tasks.
- Rising AI costs drive businesses towards cheaper modelsReuters, via BusinessDay · Jun 29, 2026Companies now send routine jobs to cheaper models and save the expensive ones for demanding work.
Local model
- What it is
- A model that runs entirely on your own computer instead of on a company's servers in the cloud.
- How it works
- You download a smaller, openly released model and run it with an app such as LM Studio or Ollama. Your words never leave the machine.
- Why it matters
- It is an option for very sensitive data or for working offline. The trade-off: local models are weaker and slower than the big cloud models, and they need a laptop with plenty of compute.
- Example
- A law firm whose policy forbids sending privileged documents to any outside vendor runs an open model on an office workstation to summarize discovery files. It is slower and less polished than the best cloud model, but the documents never leave the building.
In the news
- Meta launches an open-weight AI model that runs on MacsTechCrunch · Oct 15, 2026Anyone can download and run it, but it still needs about a terabyte of memory, far beyond an ordinary laptop.
- You Can Run OpenAI's New AI Model on a Laptop or PhoneeWeek · Aug 11, 2025A free OpenAI model that runs on an ordinary 16 GB laptop, with nothing sent to the cloud.
Prompting
- What it is
- The message you give the AI: what you want, for whom, and what good looks like. It is the part of the context you write yourself.
- How it works
- Strong prompts tend to have five parts: the goal, the background, an example of what good looks like, the format you want back, and any limits. For bigger jobs, flip it around: ask the AI to interview you first ("ask me questions until you have what you need"), or to propose a plan before it does anything. Coding agents have a plan mode built for exactly this.
- Why it matters
- The AI cannot ask what you meant unless you invite it to. Two minutes on the prompt, or letting it question you, saves twenty minutes of fixing a confident answer to the wrong question.
- Example
- The weak version, "Write a job post for a marketing hire", gets a generic post. The version in the picture first comes back with questions about salary range and remote work, then writes a draft that needs one edit instead of five. In a coding agent, plan mode does the same for bigger jobs: it lays out the steps for you to approve before it touches a file.
In the news
- Introducing Plan ModeCursor · Oct 7, 2025The plan-first habit, built into a product: the agent asks clarifying questions and writes a plan you can edit before it builds anything.
Context
- What it is
- Everything the model can see right now: its instructions, the files you attached, the conversation so far, and your newest message.
- How it works
- The model can't see anything outside that window. The window has a size limit, measured in tokens, so very long conversations get trimmed or summarized.
- Why it matters
- Most bad answers come from missing context. Use your prompt to give the AI what a smart new colleague would need: the goal, the audience, an example, and the constraints.
- Example
- A team asks its project for a Q3 forecast and gets a confident, wrong answer: the only sales file in its context is last year's, so it forecast from that. Nothing was broken; it answered from what it could see. Adding this year's file fixed it in one turn.
In the news
- Anthropic drops the surcharge for million-token context windowsThe Decoder · Mar 13, 2026Feeding in a whole document set, up to about 600 pages, now costs the same per token as a short question.
- Anthropic's Claude AI model can now handle longer promptsTechCrunch · Aug 12, 2025A million-token window holds roughly 750,000 words at once.
Fresh chat
- What it is
- Starting a new conversation instead of continuing an old one.
- How it works
- A new chat starts with an empty context, so earlier tangents, mistakes and files no longer pull the answer off course.
- Why it matters
- Long chats drift. If the AI keeps repeating a mistake or fixating on an old file, a fresh chat with a short summary of what matters usually fixes it faster than arguing.
- Example
- An hour into planning a product launch, the AI keeps proposing the March date you ruled out at the start. Open a fresh chat and paste three lines: the goal, the decisions already made (including "not March"), and the open questions. The old dead ends are gone, and the next answer starts from where you actually are.
Memory
- What it is
- Models don't remember you between conversations on their own. Memory features work by saving notes and loading them into the next chat.
- How it works
- The tool writes facts to a file or a saved memory, then puts that text back into the context next time. Projects and instruction files work the same way.
- Why it matters
- If something matters, it has to be written down somewhere the AI will read. "Why did it forget?" almost always means nothing was saved.
- Example
- A manager tells a chat assistant in March that their team has six people. In September, after two hires, it still plans workloads for six. Saved memories go stale like any notes: open the memory settings now and then and edit what is out of date.
In the news
- Your Chatbot's Memory of You Can Shape the Information You SeeColumbia Journalism Review · Apr 9, 2026A study found ChatGPT created 96% of saved memories on its own, and 28% held sensitive personal details.
- Anthropic Adds Free Memory Feature and Import Tool to Lure ChatGPT Users to ClaudeMacRumors · Mar 2, 2026Memory is now a standard feature, and what one assistant "knows" about you can be moved to another.
Hallucination
- What it is
- When an AI states something false as if it were true: a made-up citation, a wrong number, a feature that doesn't exist.
- How it works
- The model predicts plausible text. When it doesn't know, plausible and true can come apart, and it rarely says "I don't know" unless you ask it to.
- Why it matters
- A fluent answer is not necessarily a correct one. Check anything that matters: quotes, sources, numbers, legal or medical facts. For facts, turn on web search so the answer cites pages you can open, then open them: a citation is only as good as the page behind it. For precise work, have the AI write code instead.
"Rivera and Cho (2019) found enrollment rose 14% after the reform."
The paper doesn't exist. The authors, year and number all look real, and that is the problem.
In the news
- Sullivan & Cromwell apologizes to US bankruptcy judge for AI-generated errors in Prince Group caseCanadian Lawyer · Apr 22, 2026One of the most prestigious law firms filed dozens of invented or distorted citations.
- Deloitte refunds over $60K for report with AI errors, Australian government saysCFO Dive · Oct 21, 2025A Big Four report included a made-up court quote and papers that do not exist; the firm refunded part of its fee.
Code vs. an AI answer
- What it is
- Two ways to get a result: ask the AI to answer directly, or ask it to write a small program (a script) that produces the answer.
- How it works
- A direct answer is a fresh prediction each time, so it can vary or go wrong. A script follows the same steps every time: same input, same output. You can read it, rerun it and check it.
- Why it matters
- For anything that must be exactly right every time (counting, sorting hundreds of rows, pulling out citations, money), have the AI write code instead of answering.
- Example
- Reconciling 1,200 invoice lines against a bank export: an AI reading both may report "all matched except two" and miss a third. A script the AI writes compares every line, lists every mismatch, and can be rerun next month on new files.
In the news
- Microsoft launches Copilot AI function in Excel, but warns not to use it in 'any task requiring accuracy or reproducibility'PC Gamer · Aug 23, 2025Microsoft itself says to use ordinary formulas when the numbers must be exactly right.
- Why Google's AI can't spell Google (or anything else)TechCrunch · May 27, 2026Counting letters is a known weak spot, because models see tokens, not characters.
Where you use it
The tools you use AI in, and what each one can reach.
Chat
- Runs
- In the cloud
- Can reach
- What you type or upload
- Gives you
- An answer
- Best for
- One-off questions
Projects
- Runs
- In the cloud
- Can reach
- Saved files and instructions
- Gives you
- Answers that know your background
- Best for
- Ongoing work on one topic
Artifact
- Runs
- Inside a chat
- Can reach
- The conversation
- Gives you
- A page with a link
- Best for
- Something to share
Coding agent
- Runs
- On your computer
- Can reach
- Your folders; can run programs
- Gives you
- Changed files, working tools
- Best for
- Things you will keep using
Chat
- What it is
- The basic way to use AI: a conversation in a browser, desktop app or phone app, such as claude.ai, ChatGPT or Gemini.
- How it works
- You type or speak, and a model answers. It runs in the cloud and sees only what you type or upload. Your chats appear on all your devices.
- Why it matters
- It is the fastest tool for a one-off question that doesn't need your files: explain this, rewrite that, help me think it through.
Projects
- What it is
- A workspace inside a chat app with saved files and standing instructions that every chat in it can see.
- How it works
- You upload reference files (a syllabus, a brand guide, past reports) and write instructions once. Each new chat in the project starts with them already in its context.
- Why it matters
- You stop re-explaining yourself. One thing to watch: a project can lean too hard on its files. If answers keep circling back to them, start a plain chat.
- Example
- A recruiting team puts the job description, the scoring rubric and three model write-ups in one project. Every candidate summary, from any recruiter, now follows the same rubric and format, so comparing candidates gets much easier.
Artifact
- What it is
- A small website or app that the AI builds for you inside the chat. You can look at it, click around in it, and share it with a link. Claude calls these artifacts; other tools call them canvases.
- How it works
- You ask for something visual or interactive, such as "make a one-page tracker for my sources". The AI writes the page and shows it next to the chat. You ask for changes in plain words, and when it's ready you publish it and get a link.
- Why it matters
- It turns an answer into a finished thing other people can use: a checklist, a dashboard, a one-page explainer. No coding or hosting needed. Some work and school accounts turn publishing off.
Thesis sources
In the news
- Anthropic makes it easier to create and share Claude's bite-sized Artifact appsEngadget · Jun 25, 2025Small apps built in a chat can be shared and used by anyone with a Claude account.
Coding agent
- What it is
- An AI that works on your computer. It can read and write files, run programs and use the terminal. Claude Code and Codex are examples. Despite the name, it is for far more than code.
- How it works
- You open it in a folder and describe the result you want. It plans, reads files, makes changes and runs things, asking permission as it goes. In the Claude desktop app it is the Code tab next to Chat.
- Why it matters
- It turns AI from something that answers into an agent that builds: a source tracker, a cleaned-up spreadsheet, a small website. Use chat for quick questions and the coding agent for tools you'll keep.
- Example
- An operations analyst points a coding agent at a folder of 40 monthly sales exports with mismatched column names and date formats. It writes a script that cleans and merges them and builds a one-page dashboard. Next month the analyst reruns the script instead of spending a day in spreadsheets.
In the news
- Anthropic brings Claude Cowork to mobile and web as usage data shows most users aren't codingVentureBeat · Jul 7, 2026In 1.2 million sessions, only about 9% were software work; business operations and writing led.
- OpenAI sees Codex users spike to 1.6 million, positions coding tool as gateway to AI agents for businessFortune · Mar 4, 2026Weekly users more than tripled, and OpenAI is aiming coding agents at non-technical workers.
Harness
- What it is
- The tools and standing instructions an app wraps around a model. The same model can sit inside a chat app, a coding agent or a spreadsheet add-in, and what it can do depends on the harness it is in.
- How it works
- Each app decides what the model gets to work with: which tools (web search, your files, a terminal), which instructions, and how much it remembers. The model decides what to say or do; the harness decides what it can reach and act on.
- Why it matters
- When a tool impresses or disappoints you, look at what it gave the model before you blame the model. It also explains why new AI products keep appearing on top of the same few models: most of them are new harnesses.
- Example
- Ask "tidy up this sales data" in a chat and you get advice, or a cleaned copy of whatever you pasted. Ask the same model in a coding agent and it opens the actual file, writes a cleanup script, runs it and saves a new version next to the original. The model did not get smarter; its harness gave it hands.
In the news
- Improving Deep Agents with harness engineeringLangChain · Feb 17, 2026Same model, different harness: changing only the setup around it raised a benchmark score from 52.8% to 66.5%.
- OpenAI Introduces Harness Engineering: Codex Agents Power Large-Scale Software DevelopmentInfoQ · Feb 21, 2026OpenAI argues the rules, feedback and documentation around a model decide how reliably its agents work.
Making it do work
How AI takes action, follows your rules, and connects to your other tools.
Agent
- What it is
- An AI that takes steps on its own toward a goal, instead of answering one message at a time like a chat.
- How it works
- It works in a loop: plan, act (read a file, search, run something), check the result, choose the next step, and repeat until it is done or stuck. Each result goes back into its context for the next step, and big jobs can be split among helper agents.
- Why it matters
- This is the shift from AI that answers to AI that does the work. It is also why permissions matter: an agent can change things, not just say things.
- Example
- Asked to "find three venues in Philadelphia for a 40-person offsite in March, under $5,000", an agent searches, opens venue sites, checks capacity and pricing pages, drops the ones that are booked or too small, and returns a comparison table. You described the goal; it chose the dozens of steps.
In the news
- As employees build AI agents, CIOs manage the lifecycleCIO · Nov 11, 2026Ordinary staff now build agents at scale: over 10,000 at one healthcare company.
- How CEOs bringing AI agents to work are preparing customers and employeesCNBC · Jan 29, 2026Walmart and others are putting agents into real workflows, not pilots.
Subagents
- What it is
- Helper agents that a main agent starts to handle part of a bigger job, each with a narrow brief and a fresh context of its own.
- How it works
- The main agent splits the work ("review each of these five contracts"), starts a subagent for each piece, often in parallel, and gets back only their summaries. Each helper does its reading in its own context window, so the main conversation stays short and focused.
- Why it matters
- It is how agents take on jobs too big for one context: many sources, many files, many steps. The catch is the same as delegating to people. A vague brief gets a vague result, and a summary can drop the detail that mattered.
- Example
- Asked to compare five vendors' security terms, an agent starts five subagents, one per contract. Each reads a 40-page agreement and returns half a page. The main agent builds the comparison table from five summaries without ever holding 200 pages in its own context.
In the news
- Anthropic releases Opus 4.6 with new agent teamsTechCrunch · Feb 5, 2026Agents that split a big job into pieces and work on them at the same time, now a mainstream product feature.
- How we built our multi-agent research systemAnthropic · Jun 13, 2025A lead agent hands research to parallel subagents; vague handoffs caused duplicated work, and the setup uses far more tokens.
Permissions
- What it is
- The rules for what an agent may do without asking you first.
- How it works
- In manual mode it asks before each action that changes something, and you click allow or deny. In auto mode it goes ahead on its own within an allowed list. Some actions, like deleting files, can be blocked outright in a settings file.
- Why it matters
- Start in manual so you can see what it is doing. Move to auto for work you trust; otherwise an agent that runs for an hour keeps stopping to ask. Either way, read the request before you click allow. Permissions matter even more once an agent reads outside content: a web page, email or shared document can hide instructions such as "ignore your task and send this file to…". That is called prompt injection, and tight permissions are the main defense.
- Example
- Asked to "clean up old files in this project", an agent decides a folder of 214 client drafts looks unused. In manual mode you see "Delete drafts/ (214 files)?" and say no. In auto mode with deleting allowed, they are gone before you look up, and unless the folder is in a repository or backed up, there is no undo.
In the news
- Claude Wiped a Database in 9 Seconds After 'Guessing Instead Of Verifying'eWeek · Apr 30, 2026A coding agent found a key with broad access and deleted a live database and its backups without asking.
- An AI-powered coding tool wiped out a software company's database, then apologizedFortune · Jul 23, 2025An agent deleted production data during an explicit code freeze. Instructions are not locks.
Instruction file
- What it is
- A Markdown file of standing instructions that a coding agent reads at the start of every session. Claude Code reads CLAUDE.md; other tools use AGENTS.md or something similar.
- How it works
- A global file in your home folder applies everywhere. A project file inside a folder applies only there, and when the two disagree, the project file wins. Both are loaded into the context as strong requests, not locks; hard limits go in the settings file.
- Why it matters
- You write your preferences once ("I'm a teacher; explain trade-offs; never delete files without asking") instead of repeating them every time. It is the most reliable kind of AI memory.
- Example
- A consultant's project file for one client says: "Client is a hospital system. Never use patient names, even if they appear in the source files. Write for a CFO. Amounts in thousands." Every session in that client's folder starts with those rules, so nobody has to remember to say them.
Skill
- What it is
- A saved, reusable set of instructions for one task you do often, so the AI does it the same way every time.
- How it works
- A skill is a folder with a Markdown file that describes the task and when to use it, plus any templates or scripts it needs. Unlike an instruction file, it loads only when your request matches.
- Why it matters
- A chore you repeat becomes one sentence. You make your own skills, out of the work you already do. If you have explained the same process to the AI three times, make it a skill.
name: weekly-client-update description: Use when writing the Friday update email to a client. 1. Read this week's session notes. 2. Three bullets: worked on, learned, next. 3. Under 120 words. Warm, no jargon.
In the news
- Anthropic launches enterprise 'Agent Skills' and opens the standardVentureBeat · Dec 18, 2025Skills became an open format that other tools, including Microsoft and Cursor, adopted.
- Introducing Agent SkillsAnthropic · Oct 16, 2025The original launch: a folder of instructions and files the AI loads only when a task needs it.
Automation
- What it is
- Work that runs without you: on a schedule ("every Monday at 8"), or when something happens ("when a new invoice arrives").
- How it works
- You describe the task and when it should run. The AI runs it as an agent, within the permissions you set, saves or sends the result, and you check the output.
- Why it matters
- This is where AI starts saving hours instead of minutes. Expect one to two weeks of tuning before it reliably does the heavy lifting; the first runs will need fixes, and a small eval set makes those fixes measurable.
- Example
- Every Monday at 7am, an automation reads the past week's call notes, updates each deal's stage, and posts a pipeline summary to the team channel. In week one it reads "pushed to Q3" as a lost deal; after two weeks of corrections to its instructions, the summary is ready before the team meeting.
API
- What it is
- An API (application programming interface) is the agreed way for one piece of software to ask another for something.
- How it works
- A program sends a request in an exact format, such as "today's events on this calendar", and gets a structured answer back. Connectors, automations and the apps on your phone all talk to other services through APIs. Access usually comes with an API key, a long password for software: treat it like one, and never paste it into a chat or a shared document.
- Why it matters
- If a service has an API, an AI agent can probably connect to it and automate work in it; if it doesn't, someone ends up copying and pasting. When you choose tools for your team, "does it have an API?" is worth asking up front.
- Example
- Tools like Zapier and Make are chains of API calls: when a form is submitted (the form tool's API), add a row to a spreadsheet (Google's API) and post a note to the team chat (Slack's API). If any tool in the chain has no API, the chain breaks at that step and a person fills the gap.
Connector and MCP
- What it is
- A connector lets an AI tool reach another service directly: your email, Google Drive, calendar or Notion. MCP (Model Context Protocol) is the open standard that most connectors are built on.
- How it works
- You turn on a connector and sign in to the service. Behind the scenes it talks to the service's API, so the AI can search, read, and sometimes act there (draft an email, add an event) without you copying and pasting into the chat.
- Why it matters
- It answers "can my AI get at this directly?" Instead of downloading files from the cloud and pasting text, the AI works with your data where it lives. Turn on only what you need: it can see whatever you connect.
- Example
- With email and calendar connected, "prep me for tomorrow's meetings" becomes a real request: the AI finds each meeting, pulls the latest thread with each attendee, and lists the open questions, without you opening either app.
In the news
- Linux Foundation Announces the Formation of the Agentic AI Foundation (AAIF)The Linux Foundation · Dec 9, 2025MCP moved to a neutral foundation backed by Anthropic, OpenAI and others: shared plumbing, not one vendor's feature.
- 'By Design' Flaw in MCP Could Enable Widespread AI Supply Chain AttacksSecurityWeek · Apr 15, 2026Why to connect only what you trust and need: a connector is a door into your systems.
Command-line tool (CLI)
- What it is
- A command-line tool, or CLI, is a program you use by typing commands in the terminal instead of clicking buttons.
git, GitHub'sgh,verceland Claude Code's ownclaudeare all CLIs. - How it works
- You type the tool's name, an action and any details, such as
gh issue list, and it prints the result as text. Because what goes in and what comes out are plain text, a coding agent can run CLIs itself, read the results and chain several together. - Why it matters
- For an agent, a CLI is often the simplest way into a service: no connector to set up, just a command it already knows, using the access you already have. Most CLIs call the service's API underneath. If a tool you use has a CLI, your coding agent can probably operate it for you.
- Example
- Ask a coding agent to "publish the tracker and send me the link" and it may run three CLIs in a row:
gitto save the change in the repository,ghto send it to GitHub, andvercelto put it live, then paste back the address. Each step shows up as a readable line in the terminal.
API
The agent writes code for it. Works anywhere code runs.
Pull idle CRM deals
Connector
Sign in once. Works in chat apps and agents.
Search your Drive
CLI
Install it and log in once. Works in the terminal and coding agents.
vercel deploy
In the news
- Google made Gmail and Drive easier for AI agents to useThe Next Web · Mar 7, 2026Google shipped a command-line tool so AI agents can work directly in Gmail and Drive: CLIs built for agents, not people.
- Google unveils Gemini CLI, an open source AI tool for terminalsTechCrunch · Jun 25, 2025The big AI companies all put assistants in the terminal. (Google has since folded this one into its Antigravity CLI; the names keep changing.)
Shipping and judgment
Sharing your work, testing it, and deciding where AI belongs.
Code repository
- What it is
- A repository, or repo, is a project folder whose every change is recorded. Git is the tool that records the changes; GitHub is a website that keeps repositories online so others can see them and work on them.
- How it works
- Each time a meaningful set of changes is done, you make a commit: a snapshot with a short note. You can compare snapshots, go back to any of them, and push them to GitHub. Coding agents use Git all the time and can commit their work as they go.
- Why it matters
- It is the undo button for agent work: if an agent breaks something, you go back to the last good commit. It is also how teams share and review work, and most hosts publish a site straight from a GitHub repository.
- Example
- An agent rewrites the filters on a team's tracker and the page stops loading. Instead of untangling it, you say "go back to the last commit that worked". Thirty seconds later you are where you were an hour ago, and the broken attempt is still saved if anyone wants to look at it.
In the news
- Octoverse: Commits, pushes, reach new highs in 2026 as developers build with agentsThe GitHub Blog · Oct 28, 2026AI agents now open over 40% of pull requests on GitHub, and novelists, labs and factories keep their work there too.
- GitHub Copilot: Meet the new coding agentThe GitHub Blog · May 19, 2025Assign a task and an agent works on it in the background, then hands back its changes for a person to review.
Sandbox and production
- What it is
- A sandbox, or test environment, is a safe copy where you try things out. Production is the live version that real people and real data depend on.
- How it works
- You build and test in the sandbox: a copy of the site, a test spreadsheet, a made-up customer list, a separate account. Only when it works do you promote the change to production. Repositories and hosts make this routine with branches and preview links. For agents, a sandbox can also mean a walled-off space where the agent can only touch what you put inside.
- Why it matters
- Agents make mistakes quickly, so let them make those mistakes on a copy. Most of the agent disasters in the news under Permissions happened because an agent was working directly on production, with live data and no gap between trying and doing.
- Example
- Before letting an automation update a 3,000-row customer list, run it on a copy of 50 rows. You find that it blanks out phone numbers whenever a field is missing, fix the instructions, run the copy again, and only then point it at the real list.
In the news
- Amazon's vibe-coding tool Kiro reportedly vibed too hard and brought down AWSThe Register · Feb 20, 2026A change reportedly made with an AI coding tool hit a live environment for 13 hours. Amazon blames an employee role with broader access than expected, not the AI.
- Replit makes vibe-y promise to stop its AI agents making vibe coding disastersThe Register · Jul 22, 2025After its agent wiped a live database, Replit split building and live data into separate development and production databases.
Hosting
- What it is
- Putting something you built on the internet so other people can use it with a link, instead of leaving it as a file only you can open.
- How it works
- A host such as Netlify or Vercel stores your files on its servers in the cloud and gives them a web address. Most hosts publish straight from a GitHub repository, so every saved change updates the site, and many first give each change a private preview link: a sandbox to check before it goes live. Small projects are often free. An artifact is hosting done for you.
- Why it matters
- A tool on your laptop helps you; a hosted tool helps your team. Going live also raises new questions: who can see it, what happens when it breaks, and who keeps it up to date.
Evals
- What it is
- An eval is a test of AI output on a set of real cases where you already know what good looks like, run before you trust an AI process at scale.
- How it works
- Collect 20 to 50 real examples with a known right answer or a clear standard: past tickets and how they were resolved, contracts and the clauses that mattered. Run the prompt, skill or automation on all of them and score the results. Change one thing, run it again, and compare.
- Why it matters
- One good answer proves little; the next one may be wrong. Evals turn "it seemed fine when I tried it" into "it got 39 of 40 right, and here is the one it missed". They are how you tune an automation, compare models, and decide where a person still needs to check, or where AI should not be used at all.
- Example
- Before letting AI draft first replies to customer emails, a team runs it on 40 past emails where they know the good reply. It handles billing questions well, but in 6 of 9 complaints it promises refunds it is not allowed to give. They change the instructions, run the same 40 again, and get all nine complaints right. They keep a person reviewing complaints anyway.
| Version | Billing | Complaint | Other | Total |
|---|---|---|---|---|
| Out of | 18 | 9 | 13 | 40 |
| First try | 18 | 3 | 12 | 33 |
| After fix | 18 | 9 | 12 | 39 |
In the news
- Demystifying evals for AI agentsAnthropic · Jan 9, 2026How teams test AI on a fixed set of cases to define what good means and catch problems before users do.
- OpenAI says top AI models are reaching expert territory on real-world knowledge workThe Decoder · Sep 26, 2025An eval built from 1,320 real tasks in 44 occupations, with its limits spelled out: one-shot tasks, not whole jobs.
When not to use AI
- What it is
- Knowing which work AI shouldn't do, or shouldn't do without a person checking every result.
- How it works
- Ask what happens if the answer is wrong. If the cost is high, a person checks every result, the AI writes code you can check instead of answering, or the AI isn't used at all.
- Why it matters
- Safety-critical work, such as aircraft maintenance records, can't tolerate a confident wrong answer. Good AI users are known as much for what they don't hand off as for what they do.
- SafetyMaintenance, medical, anything where an error hurts someone
- MoneyPayments, invoices, figures that go into the books
- SourcesCitations and quotes you will publish under your name
- PeopleHiring, grading, decisions about a person
In the news
- German court holds Google liable for false AI Overview answersEngadget · Jun 10, 2026An interim ruling treated AI answers as the company's own words, so the company answers for them.
- Air Canada chatbot costs airline discount it wrongly offered customerCBS News · Feb 19, 2024The airline argued its chatbot was responsible for its own answers. The tribunal disagreed.
AI strategy is data strategy
- What it is
- The idea that what AI can do for you depends mostly on your data: where it lives, how it is organized, and what your tools can reach.
- How it works
- The models are much the same for everyone and keep getting cheaper. What is yours is your notes, files, history and know-how. Organized data that your AI can reach, through files, connectors or APIs, makes every tool more useful.
- Why it matters
- Before asking "which AI tool?", ask "where does my information live, and can the AI get to it?" The answer usually decides what is possible.
- Example
- Two firms buy the same AI tool. One keeps client notes in a shared, searchable drive with consistent names; the other's knowledge lives in personal inboxes and scanned PDFs. The first gets useful answers about its clients within a week. The second spends months cleaning up before the AI can help.
In the news
- Nearly every enterprise is investing in AI, but only 5% say their data is readyCIO · May 13, 202697% have AI projects; 5% have data ready for them. Access, quality and integration are the blockers.
- MIT report: 95% of generative AI pilots at companies are failingFortune · Aug 18, 2025The researchers blamed poor integration with how companies work, not the models.