The Absolute Beginner’s Guide to AI Terms (Explained Simply)

Does "AI" sound like a foreign language to you?

If you’ve turned on the news or scrolled through social media lately, you’ve probably felt a little overwhelmed. Everyone is talking about AI and throwing around words like "LLMs," "hallucinations," and "prompt engineering."

If you feel like everyone else got a handbook and you didn’t - don’t worry. You aren't alone.

The truth is, getting started with Artificial Intelligence (AI) isn't about being a computer genius. It’s mostly about learning a few new vocabulary words. Once you know what these terms mean, the fear goes away, and the fun begins!

Here is your jargon-free, no-nonsense glossary to understanding AI. Words covered in this guide:

• Artificial Intelligence (AI)

• Generative AI

• The "Model" (or LLM)

• Prompt

• Hallucination

• Chatbot

• Training Data

1. Artificial Intelligence (AI)

What it is: Think of AI as a computer program that can do tasks that usually require a human brain.

The Simple Version: Old computers were like calculators; they only did exactly what you typed in. AI is more like a smart assistant; it can recognize patterns, understand speech, and make decisions based on what it sees.

2. Generative AI

What it is: This is the specific type of AI that is taking over the world right now. While old AI was good at sorting things (like your email spam filter), Generative AI is good at creating things.

The Simple Version: It’s a digital creator. You can ask it to write a poem, draw a picture of a cat in space, or write a recipe for chocolate cake, and it will generate something brand new from scratch.

3. The "Model" (or LLM)

What it is: LLM stands for Large Language Model. This sounds scary, but it’s just the name for the technology under the hood.

The Simple Version: Think of a car. "Toyota" is the brand, but the V6 Engine is what makes it move. In AI, ChatGPT is the brand (the car), but the LLM is the engine making it work. The LLM is basically a program that has read almost the entire internet and learned how humans speak. It predicts the next word in a sentence, kind of like a super-advanced version of the "autocomplete" on your phone.

4. Prompt

What it is: The text you type into the AI to get it to do something.

The Simple Version: It’s your instructions. If you are at a restaurant, your order is your "prompt."

Bad Prompt: "Food please." (The waiter doesn't know what to bring you).

Good Prompt: "I would like a cheeseburger, medium-rare, with no pickles." (The waiter knows exactly what to do).

Pro Tip: Being specific with your prompt gets you much better results!

5. Hallucination

What it is: When the AI confidently gives you an answer that is completely made up or wrong.

The Simple Version: AI wants to please you. Sometimes, if it doesn't know the answer, it will guess rather than say "I don't know." It’s like a student taking a test who didn't study but writes a really confident essay anyway. Always double-check important facts!

6. Chatbot

What it is: The website or app where you actually talk to the AI.

The Simple Version: This is the interface that looks like a text message conversation. ChatGPT, Google Gemini, and Claude are all "chatbots." You type to them, and they type back.

7. Training Data

What it is: All the information the AI "read" to get smart.

The Simple Version: Imagine a student who read every book in the library. The books are the "Training Data." The AI uses this information to answer your questions. This is why AI sometimes doesn't know about news that happened yesterday - because that news wasn't in the books it read last year.

Ready to try it out?

Now that you speak the language, the best way to learn is to just start playing!

Go to a free tool like ChatGPT or Google Gemini, and try typing your first Prompt. Ask it something simple, like: "I have chicken and rice in my fridge. What can I make for dinner?"

You’ll be amazed at how helpful it can be.

Want more simple tips like this? Make sure to join my free Leverage Letter below! I send out weekly tips that help you use AI to make your life easier - no tech degree required.