Generative AI terms you need to know

Make sure you understand these AI basics.

This story is brought to you by Ragan\'s Center for AI Strategy. Learn more by visiting ragan.com/center-for-ai-strategyThis story is brought to you by Ragan\'s Center for AI Strategy. Learn more by visiting ragan.com/center-for-ai-strategy

Samantha Stark is founder and chief strategist at Phyusion

Foundational AI concepts

Artificial intelligence (AI) — A broad field of computer science devoted to building machines that can perform tasks that normally require human intelligence, such as perception, reasoning, learning, and language use.
Agentic capabilities — The capacity of an AI system to pursue goals autonomously: making decisions, planning, and acting with minimal or no human intervention while respecting predefined constraints.
Generative AI — Models that learn patterns in data and can create new content—text, images, audio, or video—that resembles the training distribution when given a prompt.
AEO (answer engine optimization) — The practice of optimizing content and prompts to improve visibility, relevance, and performance within generative AI systems like ChatGPT, Gemini, or Claude.
Large language model (LLM) — A large-scale neural network trained on massive text corpora to understand and generate human-like language (e.g., GPT-4, Claude 3, Gemini 5).
Transformer architecture — A deep-learning model introduced in 2017 that uses self-attention to process entire sequences in parallel, forming the technological backbone of modern language, vision, and multimodal models.
Machine learning (ML) — A subfield of AI that enables computers to learn patterns from data and improve at a task over time without being explicitly programmed with task-specific rules.
Natural language processing (NLP) — The branch of AI focused on enabling computers to understand, generate, and interact using human language.
Voice cloning — Techniques that analyze a speaker’s vocal characteristics and synthesize speech that mimics their voice, enabling personalized or consistent audio content.
Contextual awareness — An LLM’s ability to incorporate conversation history, user-specific data, or retrieved documents to ground its outputs in relevant context.
Multimodal generation — Creating or interpreting content across more than one modality (e.g., combining text, images, audio, or video in a single model interaction).

Microsoft Copilot–specific terms

Microsoft 365 Copilot — An AI assistant embedded across Microsoft 365 apps (Word, Outlook, PowerPoint, Excel, Teams, etc.) that helps draft content, summarize information, analyze data, and automate workflows.
Enterprise-grade security — Microsoft 365 Copilot inherits the platform’s compliance, privacy, and security controls (encryption, identity, data residency, admin governance) to protect company data and IP.
BizChat — A Copilot feature that uses natural-language queries to pull insights from across Outlook, Teams, OneDrive, and SharePoint—summarizing meetings, emails, and documents into useful updates.

Common AI tools

ChatGPT — OpenAI’s conversational interface for GPT models, capable of answering questions, generating content, and assisting with a variety of tasks.
Custom GPT — Tailored versions of OpenAI’s GPT models that organizations or individuals configure with specific instructions, proprietary knowledge, and tool integrations to solve domain-specific problems.
Claude — Anthropic’s AI assistant noted for its constitutional-AI alignment approach, large context windows, and nuanced reasoning.
Claude projects — A workspace feature in Claude that lets users upload documents and collaborate with the model across iterative sessions—functionally similar to a custom GPT.
Gemini — Google DeepMind’s multimodal AI model (formerly Bard) available in Google Workspace and other Google products.
DALL-E — OpenAI’s text-to-image model that generates original images from natural-language descriptions.
Midjourney — An independent generative-image tool widely used for producing high-detail artwork from text prompts.
Sora — OpenAI’s text-to-video model that generates short, realistic, and imaginative video clips from textual prompts.
HeyGen — A platform for creating AI-generated videos featuring customizable digital avatars and voiceovers.
ElevenLabs — Advanced AI voice technology for natural-sounding speech synthesis and speaker-specific voice cloning.
Perplexity — An AI search and question-answering engine that combines large-scale retrieval with LLMs to deliver cited, concise answers.
RunwayML — A generative AI tool for video creation and editing, including text-to-video generation, video-to-video generation, and image animation.

Prompt engineering basics

Prompt — The textual (or multimodal) input provided to an AI model to elicit a desired response.
Prompt engineering — The craft of designing, structuring, and iteratively refining prompts to guide AI systems toward high-quality, task-relevant outputs.
Prompt templates — Reusable prompt structures that encapsulate best practices and can be rapidly adapted for different tasks.
Temperature — A generation parameter (0–1 or 0–2 depending on the model) controlling randomness; higher values yield more diverse and creative outputs, lower values produce more deterministic results.
Iterative refinement — A workflow in which users review an AI’s output, provide feedback or clarifying instructions, and repeat the process until the response meets quality standards.

AI limitations & considerations

Hallucination — When an AI model produces output that is factually incorrect, fabricated, or nonsensical while sounding plausible.
Training data cutoff — The most recent date of the data used to train a model; events occurring after this date are unknown to the base model unless supplemented by external retrieval.
Token limit — The maximum number of tokens (roughly words or word pieces) that can be processed in a single prompt-plus-response cycle, constraining context length.
Bias — Systematic inaccuracies or unfairness in AI outputs stemming from imbalanced, unrepresentative, or prejudiced training data.
Ethical AI usage — Principles and practices that promote responsible development and deployment of AI, including transparency, accountability, fairness, privacy protection, and mitigation of harmful stereotypes.

Key concepts for corporate PR leaders

Guardrails / policy enforcement — Technical and procedural controls that constrain AI outputs to brand, legal, and compliance standards, preventing the release of disallowed or off-brand content.
Human-in-the-loop (HITL) — A governance workflow where human reviewers approve or amend AI-generated content before publication, ensuring accountability and quality control.
Sentiment analysis — AI techniques that detect and classify emotional tone in text or speech, enabling real-time monitoring of audience reactions and message impact.

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