Glossary

AI terms for product managers

The 61 ideas the lessons teach, in plain words. Each one links to the lesson where you can try it on a real model and see what it changes.

A

  • Ablation

    Removing one part of a prompt or system at a time to see how much it really contributes. It shows which ingredients matter and which are just habit.

    Try it inWriting Good Prompts →

  • Abstaining

    Letting the model say "I don't know" instead of guessing. Explicit permission cuts made-up answers, at the risk of being too cautious.

    Try it inHallucination & Grounding →

  • Agent Loop

    The cycle an agent repeats: the model decides on the next step, calls a tool, reads the result and goes again until it can answer. Each lap is another model call.

    Try it inHow an AI Agent Works →

  • Agents

    A model that decides its own next steps and tools until a goal is met. Flexible with unexpected requests, but costs more and can wander.

    Try it inWorkflows vs. Agents →

  • Approvals

    Requiring a person to confirm an agent's action before it happens, typically for money, deletions or anything that can't be undone.

    Try it inHuman-in-the-Loop →

  • Autonomy

    How much an agent may do without asking. More autonomy is faster and cheaper to run; less is safer.

    Try it inHuman-in-the-Loop →

C

E

F

G

H

J

  • JSON Schema

    A description of the exact fields, types and allowed values a JSON reply must have. Providers can enforce it, so replies always parse.

    Try it inStructured Outputs →

K

L

M

  • Max Tokens

    A cap on how long the reply can be. The model stops when it hits the cap, even mid-sentence, which keeps cost and latency predictable.

    Try it inHow an LLM Answers a Prompt →

  • MCP

    Model Context Protocol: an open standard for connecting AI assistants to tools and data. A server describes its tools once and any MCP client (Claude, ChatGPT, Cursor) can use them.

    Try it inTool Design & MCP →

  • Memory

    What an agent carries from step to step or session to session: the conversation so far, notes it saved, or facts stored for later. It all costs context and tokens.

    Try it inHow an AI Agent Works →

  • Model Choice

    Picking which model handles a task. Bigger models are better at hard cases and cost more; most traffic doesn't need them.

    Try it inModel Routing →

  • Monitoring

    Watching a live AI feature: sampling real conversations, grading them and tracking failures, cost and latency, then turning failures into new test cases.

    Try it inProduction Monitoring →

O

P

R

S

T

U

V

W

  • Workflows

    A fixed sequence of steps, some using a model, decided in code. Cheap and predictable, but it mishandles anything it wasn't designed for.

    Try it inWorkflows vs. Agents →