AI & Automation Glossary

Clear, jargon-free definitions of key AI and automation concepts for business owners.

80/20 Principle (Pareto Principle)

A concept stating that roughly 80% of results come from 20% of efforts. In business, this means focusing on the highest-impact activities that drive most of your revenue or growth.

AI (Artificial Intelligence)

Technology that enables machines to learn from data and perform tasks that typically require human intelligence. AI can recognise patterns, make decisions, and improve over time without explicit programming for every scenario.

AI Agent

An autonomous AI system that can make decisions, take actions, and interact with other tools or services without constant human intervention. Think of it as a digital assistant that works independently within defined parameters.

AI Workflow Audit

A systematic review of your business processes to identify which tasks could be automated or enhanced using AI. This uncovers time-wasting activities that could be delegated to technology.

API (Application Programming Interface)

A set of rules that allows two software applications to communicate and share data. APIs let you connect different tools and automate information flow between them.

Automation

The use of technology to perform repetitive or routine tasks without human intervention. Automation frees up your time and team to focus on strategic, higher-value work.

ChatGPT

A conversational AI tool built by OpenAI that can answer questions, write content, and help with a wide range of tasks through natural conversation. It's widely accessible and popular for business use cases.

Claude

An AI assistant created by Anthropic, designed for complex reasoning, analysis, and content creation. Many businesses prefer Claude for detailed work, coding, and strategic thinking tasks.

Close The Gap Assessment

An 8020AI service that evaluates where your business stands with AI adoption and identifies specific opportunities to close the gap between your current state and your potential.

ClaimBackTime

An 8020AI service focused on identifying and automating time-wasting tasks, allowing business owners to reclaim hours each week and focus on revenue-generating activities.

CRM (Customer Relationship Management)

Software that helps you manage interactions with customers and prospects, tracking communications, sales opportunities, and customer data in one central location.

E-E-A-T

Experience, Expertise, Authoritativeness, and Trustworthiness. A framework used to evaluate content quality, especially important for AI-generated content to maintain credibility with your audience.

Generative AI

AI that can create new content - text, images, code, or data - based on patterns it has learned. Tools like ChatGPT and Claude are examples of generative AI.

Hallucination

When an AI confidently provides false or made-up information that sounds plausible. Always fact-check AI outputs, especially for critical business decisions.

Integration

The process of connecting different software tools so they work together seamlessly. Good integrations eliminate manual data entry and keep information up-to-date across systems.

LLM (Large Language Model)

A type of AI trained on vast amounts of text data to understand and generate human language. ChatGPT, Claude, and similar tools are all large language models.

Make

A no-code automation platform (formerly Integromat) for connecting apps and building visual workflows. Still useful for simple trigger-action connections, but AI agents like Claude Cowork and Manus now handle complex multi-step automation more flexibly.

Manus

An AI agent (acquired by Meta in 2026) that runs multi-step tasks on your computer. Its desktop app works directly with your local files, tools, and applications. One of the new AI agents replacing traditional automation platforms like Zapier.

n8n

An open-source workflow automation platform for building connections between applications. Still useful for simple trigger-action workflows, but increasingly being replaced by AI agents like Claude Cowork, Perplexity Computer, and Manus for complex multi-step tasks.

Natural Language Processing

A branch of AI that helps machines understand and interpret human language as it's naturally written or spoken. This powers chatbots and AI assistants.

Prompt

An instruction or question you give to an AI tool to generate a response. The quality and clarity of your prompt directly influences the quality of the output.

Prompt Engineering

The skill of crafting clear, specific instructions for AI to get better results. Small changes to your prompt can significantly improve the relevance and quality of AI outputs.

SaaS

Software as a Service. Cloud-based software you access through a web browser, usually on a subscription basis. Most modern business tools are SaaS applications.

Workflow

A sequence of automated steps that tasks follow from start to finish. Well-designed workflows reduce errors, save time, and ensure consistency across your business.

Zapier

A no-code automation platform that connects apps with trigger-action workflows. Still works for simple connections, but AI agents now do the complex multi-step stuff that used to need dozens of Zaps wired together.

Claude Cowork

Anthropic's workspace that lets Claude run tasks on your computer on its own. You describe what you need, it figures out the steps. Includes Dispatch for assigning tasks and walking away.

Perplexity Computer

Perplexity's AI agent that breaks requests into tasks, spins up sub-agents, and runs them. Does research, writes documents, processes data, and calls APIs. Available in the cloud and on your desktop.