AI Glossary: Essential Terms for Future Tech

Published Date : 30/10/2025 

In 2025, AI has become an integral part of our daily lives, from business software to personal assistants. Understanding AI terms is crucial for staying informed and competitive. This guide breaks down essential AI terminology. 

Artificial intelligence is everywhere in 2025. From business software providers adding AI features to their platforms to people using ChatGPT for therapy, the technology continues to integrate into everyday life. As a result, the new lingo and jargon that have been circulating in the tech industry for the last few years are now finding their way into more casual settings. Understanding these terms is becoming increasingly vital for those who want to stay in the loop.

So, in this guide, we’ll explain some of the most common AI terms you may have heard over the last few years, providing context when the topic inevitably comes up in your business or personal life.

AI Terms Explained

AI (Artificial Intelligence)

AI stands for artificial intelligence, a broad term for any technology that seeks to replicate human intelligence. More specifically, artificial intelligence refers to technology that can think and learn like humans do.

Algorithm

An algorithm is the set of instructions provided to an AI model or any piece of software that dictates how it operates. For example, the TikTok algorithm describes how the social media platform operates for specific users.

Chatbot

A chatbot is an AI-powered piece of software designed to replicate human interaction through a messaging or voice-activated platform. These are commonly used in customer service and support.

Data Mining

Data mining is the practice of harvesting large sets of data from users to recognize patterns and inform software on how to better serve users. This is a crucial aspect of improving AI models over time.

Deepfake

A deepfake is an image or video that features the likeness of a person and is generated entirely by AI. The technology is considered extremely dangerous and is making scams much harder to spot in 2025.

Generative AI

Generative AI describes any artificial intelligence program that generates something, including written copy, images, and video. Most of the AI in the news right now is generative AI, such as tools like ChatGPT and Gemini.

Hallucination

An AI hallucination is defined as the common occurrence of an AI platform providing incorrect, false, or misleading answers to user queries. AI errors have become very common, but hopefully, they will improve over time.

Large Language Model (LLM)

A large language model, or LLM, describes an AI model that is specifically trained on massive data sets of text so that it can understand natural language prompts and respond with equally human-like answers.

Machine Learning

Machine learning is a type of AI that focuses on a particular model learning in the same way as humans. A program with machine learning will improve and grow over time on its own, without human input.

Natural Language Processing (NLP)

Natural language processing, or NLP, is the type of AI processing focused on understanding queries and providing answers that mirror the kind of language used by actual humans in conversation.

Neural Network

A neural network is a type of AI processing that resembles the human brain, using connected nodes—or neurons—organized in layers. This allows for more in-depth “thoughts” from the AI, but it requires massive sets of data to accomplish.

Prompt

In the context of AI, a prompt is the text you input to an AI model. Prompts can come in many forms, including questions, queries, or commands, and can feature various elements like links, images, or video.

Recognition

When talking about AI, recognition generally refers to image recognition, where a user inputs an image or video, and AI technology is used to recognize certain elements within it.

Token

A token is an allotment for prompts used on AI platforms. Essentially, AI platforms like ChatGPT will only allow users a certain number of tokens, depending on how much they pay. Tokens are also called “credits” or “messages,” depending on the platform.

Training Data

Training data describes the massive sets of data used by AI companies to train their models, making them more intelligent over time.

Vibe Coding

Vibe coding is a term used to describe coding without using an actual coding language. It allows users to create apps, websites, and software with simple plain text prompts, making it accessible to virtually anyone, thanks to AI.

The Importance of Understanding AI Terms in 2025

If you still think that AI is a passing fad, you are tragically mistaken. The technology is single-handedly propping up the US economy, with one economist noting that nearly 92% of U.S. GDP growth in the first half of 2025 can be attributed to AI.

Subsequently, the business world has been fully embracing the technology over the last few years, with mass layoffs and operational pivots sweeping virtually every industry. Suffice to say, if you want to remain gainfully employed for the foreseeable future, or just want to be able to hold a conversation with your more tech-enthused friends, understanding these AI terms is absolutely necessary. 

Frequently Asked Questions (FAQS): 

Q: What is AI?

A: AI stands for artificial intelligence, a broad term for any technology that seeks to replicate human intelligence and can think and learn like humans do.

Q: What is a chatbot?

A: A chatbot is an AI-powered piece of software designed to replicate human interaction through a messaging or voice-activated platform, commonly used in customer service and support.

Q: What is a deepfake?

A: A deepfake is an image or video that features the likeness of a person and is generated entirely by AI. The technology is considered extremely dangerous and is making scams much harder to spot.

Q: What is generative AI?

A: Generative AI describes any artificial intelligence program that generates something, including written copy, images, and video. Tools like ChatGPT and Gemini are examples of generative AI.

Q: What is machine learning?

A: Machine learning is a type of AI that focuses on a particular model learning in the same way as humans. A program with machine learning will improve and grow over time on its own, without human input. 

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