AI strategy consulting

AI is Confusing – Here’s Your Cheat Sheet

Ryan Flanagan
Feb 07, 2025By Ryan Flanagan

 Feeling Lost in AI Jargon?

You’re Not Alone


AI is everywhere, from chatbots answering customer queries to algorithms curating your social media feed. But if you’ve ever felt overwhelmed by machine learning, neural networks, or large language models, you’re not alone. The field is filled with technical terms that can make AI seem more complicated than it needs to be.

To help you cut through the confusion, here’s a simple, no-nonsense glossary that explains the most common AI terms in plain English. Whether you’re a business leader, an entrepreneur, or just curious about AI, this cheat sheet will help you make sense of it all.

The Essential AI Terms You Need to Know

AI isn’t magic—it’s a collection of technologies designed to process data, learn from patterns, and automate tasks. Below are the most important terms you need to understand to navigate the world of AI confidently.

The Basics

  • Artificial Intelligence (AI) – A broad term for machines that can mimic human-like thinking, decision-making, or problem-solving.
  • Machine Learning (ML) – A subset of AI that allows computers to learn from data and improve performance without being explicitly programmed.
  • Deep Learning – A more advanced type of machine learning that mimics the way the human brain processes information, using layers of neural networks.
  • Neural Networks – A system of algorithms inspired by the human brain, used to recognize patterns and make decisions.
  • Algorithm – A set of instructions that a computer follows to perform a task, whether it’s recognising speech or recommending products.

AI in Action:

  • Natural Language Processing (NLP) – The technology that enables AI to understand and generate human language (e.g., ChatGPT, Siri, Google Translate).
  • Large Language Model (LLM) – A type of AI trained on massive amounts of text data to generate human-like responses (e.g., OpenAI’s GPT-4).
  • Computer Vision – The ability of AI to interpret images and videos, allowing it to recognize objects, faces, and text.
  • Generative AI – AI that can create new content, such as text, images, or music, rather than just analysing existing data.
  • Chatbot – A software program that uses AI to simulate conversations with users (e.g., customer service bots).

The AI Behind the Scenes

  • Training Data – The information used to teach an AI model how to make predictions. The better the data, the smarter the AI.
  • Bias – When AI produces unfair or inaccurate results due to flaws in its training data.
  • Hallucination – When an AI generates incorrect or misleading information, making up facts that aren’t real.
  • Reinforcement Learning – A method where AI improves by trial and error, receiving rewards for making the right choices.
  • Fine-Tuning – Adjusting an existing AI model by training it on more specific data to improve its performance in a particular area.

Why Understanding AI Matters

AI is no longer just for tech companies—it’s becoming a core part of business, healthcare, education, and everyday life. Understanding these terms isn’t just useful for engineers; it’s essential for anyone who wants to make informed decisions about AI tools and their impact.

  • Business leaders can use AI to improve operations, customer service, and decision-making.
  • Entrepreneurs can leverage AI-powered tools to automate tasks and boost productivity.
  • Employees can stay ahead in their careers by learning how to work alongside AI.
  • Knowing the basics of AI removes the fear of the unknown and gives you the confidence to explore its potential.

 Take the Next Step in AI Learning

Now that you’ve got the fundamentals covered, it’s time to deepen your understanding. Our Masterclass on AI Fundamentals breaks down these concepts further, helping you apply AI knowledge in real-world business and professional settings.

✅ Learn how AI can improve your workflow
✅ Understand how to select the right AI tools
✅ Avoid common pitfalls like bias and hallucinations

AI is shaping the future—make sure you’re part of it. Join the Masterclass on AI Fundamentals and gain the knowledge you need to stay ahead in an AI-driven world.