Source: [Original HTML page](https://stolenorbit.com/en/resources/ai-automation-glossary/) Language: English WORDS THAT HELP YOU DECIDE # Understand the words. Make better decisions. 24 terms you will encounter in an AI project. Each includes an operational definition, a limitation and a concrete question to ask a supplier. Linked guides explain the method and examples. By Stolen Orbit. Reviewed 25 September 2026. [Workflow](https://stolenorbit.com/en/resources/ai-automation-glossary/#workflow) [AI agent](https://stolenorbit.com/en/resources/ai-automation-glossary/#agent) [LLM](https://stolenorbit.com/en/resources/ai-automation-glossary/#llm) [RAG](https://stolenorbit.com/en/resources/ai-automation-glossary/#rag) [Fine-tuning](https://stolenorbit.com/en/resources/ai-automation-glossary/#fine-tuning) [Context](https://stolenorbit.com/en/resources/ai-automation-glossary/#context) [Tokens](https://stolenorbit.com/en/resources/ai-automation-glossary/#tokens) [Structured output](https://stolenorbit.com/en/resources/ai-automation-glossary/#structured-output) [Hallucination](https://stolenorbit.com/en/resources/ai-automation-glossary/#hallucination) [Evaluation](https://stolenorbit.com/en/resources/ai-automation-glossary/#evaluation) [Expected result](https://stolenorbit.com/en/resources/ai-automation-glossary/#ground-truth) [Human review](https://stolenorbit.com/en/resources/ai-automation-glossary/#human-review) [API](https://stolenorbit.com/en/resources/ai-automation-glossary/#api) [Webhook](https://stolenorbit.com/en/resources/ai-automation-glossary/#webhook) [Idempotency](https://stolenorbit.com/en/resources/ai-automation-glossary/#idempotency) [Reconciliation](https://stolenorbit.com/en/resources/ai-automation-glossary/#reconciliation) [Least privilege](https://stolenorbit.com/en/resources/ai-automation-glossary/#least-privilege) [Shadow mode](https://stolenorbit.com/en/resources/ai-automation-glossary/#shadow-mode) [Rollback and recovery](https://stolenorbit.com/en/resources/ai-automation-glossary/#rollback) [Monitoring](https://stolenorbit.com/en/resources/ai-automation-glossary/#monitoring) [Data drift](https://stolenorbit.com/en/resources/ai-automation-glossary/#drift) [Released capacity](https://stolenorbit.com/en/resources/ai-automation-glossary/#capacity) [Total cost of ownership](https://stolenorbit.com/en/resources/ai-automation-glossary/#tco) [Managed service](https://stolenorbit.com/en/resources/ai-automation-glossary/#managed-service) ## [Workflow](https://stolenorbit.com/en/resources/ai-automation-glossary/#workflow) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#workflow) A defined sequence of steps and conditions that takes an input to an outcome. It can include an AI model without delegating the entire sequence to it. **Ask:** Which steps are fixed and which depend on a person’s judgement? [AI agents or workflows →](https://stolenorbit.com/en/resources/ai-agents-or-workflows/) ## [AI agent](https://stolenorbit.com/en/resources/ai-automation-glossary/#agent) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#agent) A system in which a model can choose tools or steps within a defined scope. Acting requires permissions, limits and verifiable stopping conditions. **Ask:** Which actions can it perform, under whose credentials, and when must it stop? [AI agents for business →](https://stolenorbit.com/en/services/ai-agents/) ## [LLM](https://stolenorbit.com/en/resources/ai-automation-glossary/#llm) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#llm) A language model that generates or transforms text from its input and learned patterns. Fluent output does not establish correctness or access to business data. **Ask:** How will we check results on our work, including incorrect answers? [AI agents or workflows →](https://stolenorbit.com/en/resources/ai-agents-or-workflows/) ## [RAG](https://stolenorbit.com/en/resources/ai-automation-glossary/#rag) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#rag) An approach that retrieves information from selected sources and provides it to the model when answering. Retrieval, permissions and the answer can still be wrong. **Ask:** Does the answer show a current source that the recipient is allowed to access? [RAG or fine tuning →](https://stolenorbit.com/en/resources/rag-or-fine-tuning/) ## [Fine-tuning](https://stolenorbit.com/en/resources/ai-automation-glossary/#fine-tuning) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#fine-tuning) Additional training on examples to adapt a model’s behaviour. It does not automatically replace an up-to-date knowledge store or permission-aware retrieval. **Ask:** Is the problem the model’s behaviour or missing information? [RAG or fine tuning →](https://stolenorbit.com/en/resources/rag-or-fine-tuning/) ## [Context](https://stolenorbit.com/en/resources/ai-automation-glossary/#context) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#context) The instructions, messages and documents available to a model for a particular run. A large context window does not mean every detail will be used correctly. **Ask:** Which sources enter the context, and what happens when one is missing? [RAG or fine tuning →](https://stolenorbit.com/en/resources/rag-or-fine-tuning/) ## [Tokens](https://stolenorbit.com/en/resources/ai-automation-glossary/#tokens) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#tokens) The units a model uses to represent text. They do not always correspond to words; input, output and other provider-specific charges can affect cost. **Ask:** Does the estimate specify volume, retries and consumption limits? [AI implementation costs →](https://stolenorbit.com/en/resources/ai-implementation-costs/) ## [Structured output](https://stolenorbit.com/en/resources/ai-automation-glossary/#structured-output) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#structured-output) A result with expected fields and types, such as product code and quantity. A valid format does not prove the values exist in the source or are correct. **Ask:** Do we check both the schema and agreement with the document? [Document AI →](https://stolenorbit.com/en/services/ai-document-data-extraction/) ## [Hallucination](https://stolenorbit.com/en/resources/ai-automation-glossary/#hallucination) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#hallucination) A generated statement or value without adequate support in the available information. It may sound plausible and perfectly match the requested format. **Ask:** Does the system leave a field empty and request review when the value is absent? [Evaluating AI reliability →](https://stolenorbit.com/en/resources/evaluating-ai-reliability/) ## [Evaluation](https://stolenorbit.com/en/resources/ai-automation-glossary/#evaluation) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#evaluation) Comparing outputs with predefined criteria on representative cases. Include ordinary cases, failures and conditions in which the system must not proceed. **Ask:** Which cases failed, and who decided the expected result? [Evaluation lab →](https://stolenorbit.com/en/tools/ai-extraction-evaluation/) ## [Expected result](https://stolenorbit.com/en/resources/ai-automation-glossary/#ground-truth) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#ground-truth) The approved reference answer or action for a test case. If the case is ambiguous, the reference should acknowledge that rather than invent certainty. **Ask:** Do two process owners agree on the expected outcome and review cases? [AI evaluation dataset →](https://stolenorbit.com/en/templates/ai-evaluation-dataset/) ## [Human review](https://stolenorbit.com/en/resources/ai-automation-glossary/#human-review) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#human-review) A real check before an action, with the information, time and authority to correct or stop it. An Approve button alone does not establish useful oversight. **Ask:** Can the reviewer see the source, changes and consequences before approving? [Human review for AI →](https://stolenorbit.com/en/resources/human-review-for-ai/) ## [API](https://stolenorbit.com/en/resources/ai-automation-glossary/#api) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#api) An interface through which software reads data or requests operations. Its existence does not establish that the project’s required fields and permissions are available. **Ask:** Which operations are available on our plan and within what limits? [System integration map →](https://stolenorbit.com/en/templates/integration-map/) ## [Webhook](https://stolenorbit.com/en/resources/ai-automation-glossary/#webhook) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#webhook) A notification sent between systems when an event occurs. Provider behaviour may include delays, repeated delivery or failed attempts. **Ask:** How do we verify the notification and handle repeated or missing events? [Automation failures and duplicates →](https://stolenorbit.com/en/resources/automation-failures-and-duplicates/) ## [Idempotency](https://stolenorbit.com/en/resources/ai-automation-glossary/#idempotency) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#idempotency) The property that repeating the same request does not multiply its intended effect. It matters when a missing response leaves the outcome uncertain. **Ask:** Could a retry create another order or send another email? [Automation failures and duplicates →](https://stolenorbit.com/en/resources/automation-failures-and-duplicates/) ## [Reconciliation](https://stolenorbit.com/en/resources/ai-automation-glossary/#reconciliation) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#reconciliation) Comparing what should have been recorded with what the destination system actually recorded. Successful transmission alone does not prove the final state is correct. **Ask:** Can we trace each input to the record created in the ERP? [ERP integration reconciliation →](https://stolenorbit.com/en/templates/erp-reconciliation/) ## [Least privilege](https://stolenorbit.com/en/resources/ai-automation-glossary/#least-privilege) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#least-privilege) Giving each component only the access required for its task. Reading, writing and approving may need different roles and credentials. **Ask:** Can we revoke one capability without disabling the entire process? [AI permission matrix →](https://stolenorbit.com/en/templates/ai-permission-matrix/) ## [Shadow mode](https://stolenorbit.com/en/resources/ai-automation-glossary/#shadow-mode) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#shadow-mode) A trial alongside real work that produces comparable outputs without performing the process’s operational actions. The no-write boundary needs technical verification. **Ask:** What prevents the trial from changing records or contacting customers? [Rolling out AI →](https://stolenorbit.com/en/resources/rolling-out-ai-safely/) ## [Rollback and recovery](https://stolenorbit.com/en/resources/ai-automation-glossary/#rollback) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#rollback) Returning to a previous configuration and recovering work affected by a failure. Rolling back software does not automatically undo a sent email or order. **Ask:** How will we find and correct effects that have already occurred? [AI rollout plan →](https://stolenorbit.com/en/templates/ai-rollout-plan/) ## [Monitoring](https://stolenorbit.com/en/resources/ai-automation-glossary/#monitoring) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#monitoring) Checks on failures, queues, consumption and quality, with an owner for alerts. Technical availability does not establish that outputs remain useful. **Ask:** Which signal triggers intervention, and who acts on it? [AI operations runbook →](https://stolenorbit.com/en/templates/ai-monitoring-runbook/) ## [Data drift](https://stolenorbit.com/en/resources/ai-automation-glossary/#drift) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#drift) A change in inputs or operating context that can degrade a previously useful system: new formats, products, instructions or request types. **Ask:** Which evaluations do we repeat when the work changes? [AI change log →](https://stolenorbit.com/en/templates/ai-change-log/) ## [Released capacity](https://stolenorbit.com/en/resources/ai-automation-glossary/#capacity) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#capacity) Potentially available time after subtracting review, corrections and operational work. Multiplying it by an hourly rate does not prove that expense has disappeared. **Ask:** How will the hours be used, and which realised benefit will we measure? [How much time could automation release? →](https://stolenorbit.com/en/tools/automation-roi-calculator/) ## [Total cost of ownership](https://stolenorbit.com/en/resources/ai-automation-glossary/#tco) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#tco) Project cost over the chosen period: setup, software, consumption, internal work, maintenance and changes. It depends on the assumptions and comparison boundary. **Ask:** Does the comparison use the same period, volume and support scope? [AI implementation costs →](https://stolenorbit.com/en/resources/ai-implementation-costs/) ## [Managed service](https://stolenorbit.com/en/resources/ai-automation-glossary/#managed-service) [Source for this section](https://stolenorbit.com/en/resources/ai-automation-glossary/#managed-service) An agreement for recurring operational work: checks, failure handling, updates and agreed support. A recurring fee does not imply unlimited work or unspecified response times. **Ask:** What is included, what triggers action and what counts as a scope change? [Automation operations →](https://stolenorbit.com/en/services/automation-ai-maintenance/) ## References and method These are editorial definitions for business buyers. The questions are Stolen Orbit’s suggestions; they do not replace a technical specification or establish a product’s reliability. - [Anthropic — Building effective agents](https://www.anthropic.com/engineering/building-effective-agents) - [Microsoft Learn — Retrieval augmented generation](https://learn.microsoft.com/en-us/azure/foundry/concepts/retrieval-augmented-generation) - [AWS — Idempotent APIs](https://aws.amazon.com/builders-library/making-retries-safe-with-idempotent-APIs/) [Choose a practical reading path](https://stolenorbit.com/en/resources/)