AI BASICS

AI, in plain English.

What each major AI tool actually is — and what the terms you keep hearing actually mean. No jargon. No hype. Just clear, honest explanations.

If you can't explain it simply, you don't understand it well enough.

The chatbots and assistants you'll run into.

Each of these is built by a different company. They overlap more than they differ, but each one has its own personality and strengths.

C

Claude

By Anthropic

A chatbot focused on being helpful, harmless, and honest. Strong at reading and writing long documents, analyzing code, and reasoning through complex tasks. The interface is clean and the responses tend to be careful and thoughtful.

Best for Long-form writing, document analysis, coding, and conversations where a careful, considered tone matters.
GPT

ChatGPT

By OpenAI

The chatbot that made AI mainstream. Conversational, fast, and tied to the broadest ecosystem of plugins, image generators, voice modes, and integrations. The default starting point for most people new to AI.

Best for General-purpose tasks, image generation, brainstorming, and anything where breadth of features matters more than depth.
G

Gemini

By Google

Google's AI assistant, deeply integrated with Gmail, Docs, Sheets, and the rest of Google Workspace. Strong at handling images, voice, and very long inputs. Plays well with everything else Google.

Best for Teams already living in Google Workspace; tasks that mix text with images, audio, or video.
Gr

Grok

By xAI

An AI assistant built into X (formerly Twitter). Real-time access to the X feed gives it strong recency on news and trends. Personality is more casual and unfiltered than competitors.

Best for Real-time news and event analysis, casual brainstorming, and workflows that live inside X.
Co

Copilot

By Microsoft

Microsoft's AI layer, built into Word, Excel, PowerPoint, Outlook, Teams, and GitHub. It's less a destination chatbot and more an assistant that lives inside the tools your team already uses every day.

Best for Office-heavy workflows, code completion (via GitHub Copilot), and Windows-native experiences.
Lm

Llama

By Meta

An open-source family of AI models. Free to download, modify, and run on your own infrastructure. Powers many other products you've used without ever knowing Llama was underneath.

Best for Companies that need to host AI in their own environment for privacy, compliance, cost, or customization reasons.
Mi

Mistral

By Mistral AI (France)

A European AI company offering both open-source and commercial models. Known for efficient, fast models that punch above their weight on cost. Strong appeal for teams that care about data residency in the EU.

Best for Cost-conscious deployments, European data-residency requirements, and engineering teams that want flexibility without lock-in.
Px

Perplexity

By Perplexity AI

Less a chatbot, more an AI-powered search engine. Answers your questions with linked sources, like a research assistant that shows its work. Routes your query through whichever model best fits the task.

Best for Research, fact-checking, and anything where you need to know exactly where the information came from.

What people actually mean when they use these words.

If you've sat in a meeting where someone said "agentic" or "RAG" and nodded politely, this section is for you.

LARGE LANGUAGE MODEL

LLM

All of the chatbots above are LLMs — software trained on huge amounts of text that can read and write in human-like language. "LLM" is the technical name for the engine. "ChatGPT" is one product built on top of one.

Prompt

The instruction you give an AI. "Summarize this email in three sentences" is a prompt. The quality of your prompt usually determines the quality of the answer — the same way a good question gets a good answer from a human.

TOKEN · CONTEXT WINDOW

Tokens & context

A token is a chunk of text — roughly 3/4 of a word. The "context window" is how much text an AI can hold in its head at once. A 200,000-token window can read about 150,000 words — roughly a 500-page book — in one sitting.

Hallucination

When an AI confidently says something that isn't true. It's not lying — it just doesn't know what it doesn't know. The fix is verification, especially for anything factual, legal, financial, or otherwise high-stakes.

RETRIEVAL-AUGMENTED GENERATION

RAG

A technique where the AI looks things up in your documents before answering. Lets the AI use your private knowledge — internal docs, client files, policies — without retraining the underlying model. The most common way SMBs make AI useful on their own data.

Fine-tuning

Customizing an AI model on your own data so it speaks in your voice or knows your specific domain. More involved than prompting, less invasive than building a model from scratch. For most SMBs, RAG is the simpler first step.

AGENT · AGENTIC

Agents

An AI that doesn't just answer questions — it takes actions. An agent can book a meeting, send an email, query a database, or run code on its own. "Agentic" is the adjective that describes any system that operates this way.

AI WORKFLOW · AUTOMATION

Workflows

A series of steps that combine AI with regular software actions. Example: "When a new support ticket arrives, summarize it with AI, route it to the right team, and draft a reply." Workflows are how AI starts saving real time across a business.

MODEL CONTEXT PROTOCOL

MCP

A new standard (introduced by Anthropic in 2024) that lets AI assistants safely connect to outside tools and data — your calendar, your CRM, your codebase. Think of it as USB-C for AI integrations: one connector that works across many tools.

Multimodal

An AI that can handle more than just text — also images, audio, and video. Modern AI is increasingly multimodal: you can show Claude a chart, ask Gemini about a video, or have ChatGPT generate an image from a description.

Reasoning model

A type of AI that thinks step-by-step before answering. Slower but more accurate on math, logic, coding, and complex problems. Worth using when accuracy matters more than speed; overkill for quick everyday tasks.

Not sure which of these matters for your business?

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