AI glossary in plain English — learn the key AI concepts for SMB owners

The EU AI Act requires every employee using AI to have "sufficient AI literacy" — in practice, an understanding of the core concepts. This free AI glossary covers 40+ terms from a Finnish SMB perspective: from prompting to hallucination and from RAG to the AI Act. Browse the terms one card at a time or test your knowledge with a multiple-choice quiz.

Who is the glossary for?

What terms does the glossary cover?

What is a prompt and why is it discussed so much?

What is hallucination?

What is RAG and when do you need it?

Is the AI glossary free?

Yes. The glossary is entirely free and requires no email or signup. You can use it as training material as well.

Does the glossary fit as a foundation for AI Act training?

Yes. Article 4 of the EU AI Act requires every employee using AI to have sufficient AI literacy. The glossary provides the base concepts everyone should know. Combined with company-specific training, it meets the Article 4 requirements well.

What is an LLM?

An LLM (Large Language Model) is an AI trained on huge amounts of text to predict natural language one word at a time. ChatGPT, Claude, Gemini, and Copilot are all LLMs. Their strength is understanding and producing text; their weakness is factual accuracy without grounding.

What is the AI Act?

The AI Act (EU AI Regulation) is the EU's law regulating the development and use of AI systems. It entered into force in August 2024 and its enforcement powers activate on 2 August 2026. The regulation classifies systems into four categories (prohibited, high, limited, minimal risk) and imposes obligations by risk class.

What is the difference between a chatbot and an agent?

A chatbot answers questions. An agent takes actions: sends email, books calendar slots, places orders, updates the CRM. An agent uses LLM reasoning and tools (APIs) to perform tasks. By 2026 the line has blurred because many "chatbots" are actually agents.

Does the glossary work offline?

Yes. The glossary runs entirely in your browser. After the first page load you can browse terms and take the quiz without an internet connection.

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