AAI-M study materials
AAI-M study resources

AAI-M key terms

AAI-M · Get comfortable with the vocabulary.

Artificial Intelligence (AI)

The field of building computer systems that perform tasks normally requiring human intelligence, such as reasoning, learning, perception, and language use. It is an umbrella covering many techniques, not a single method.

Related: Machine Learning, Generative AI
Machine Learning (ML)

A branch of AI where systems learn patterns from data rather than following hand-written rules. Models improve at a task as they are exposed to more examples during training.

Related: Training Data, Model
Deep Learning

A machine learning approach using artificial neural networks with many stacked layers. It excels at tasks like image, speech, and text processing because deeper layers capture increasingly abstract features.

Related: Neural Network, Large Language Model
Neural Network

A computing structure of interconnected nodes arranged in layers that transform input data into outputs. Each connection carries a weight adjusted during training to reduce prediction error.

Related: Deep Learning, Training
Training Data

The labeled or unlabeled examples used to teach a model its patterns and parameters. Its quality, representativeness, and licensing heavily influence how well the resulting model behaves.

Related: Validation Data, Data Quality
Validation Data

A held-out portion of data used during model development to tune settings and compare candidate models. It is kept separate from training data to reveal whether the model generalizes.

Related: Training Data, Test Data
Test Data

Data reserved and never used during training or tuning, used only for a final, unbiased estimate of model performance. Leakage from test data into training invalidates this estimate.

Related: Validation Data, Overfitting
Overfitting

When a model memorizes training examples, including their noise, instead of learning general patterns. It performs well on training data but poorly on new, unseen data.

Related: Underfitting, Test Data
Underfitting

When a model is too simple or insufficiently trained to capture the underlying patterns in the data. It performs poorly on both training and new data.

Related: Overfitting, Model
Supervised Learning

A training approach where each example includes the correct answer, called a label. The model learns to map inputs to those labeled outputs, enabling prediction or classification on new data.

Related: Unsupervised Learning, Label
Unsupervised Learning

A training approach that finds structure in data without labeled answers. Common uses include clustering similar records and reducing dimensionality to reveal patterns.

Related: Supervised Learning, Clustering
Reinforcement Learning

A training approach where an agent learns by taking actions and receiving rewards or penalties. Over many trials it discovers strategies that maximize cumulative reward.

Related: Model, Training
Label

The known correct output attached to a training example, such as a category or numeric value. High-quality labels are essential for supervised learning to succeed.

Related: Supervised Learning, Data Quality
Feature

An individual measurable input variable used by a model to make predictions, such as age, price, or word count. Feature selection and engineering strongly affect model accuracy.

Related: Training Data, Model
Model

The mathematical structure produced by training that maps inputs to outputs. It encodes learned patterns and is what gets deployed to make predictions or generate content.

Related: Training, Inference
Training

The process of feeding data to an algorithm so it adjusts its internal parameters and improves at a task. It produces a model that can then be evaluated and deployed.

Related: Model, Inference
Inference

Using an already-trained model to produce predictions or outputs on new inputs. It happens in production and is typically far cheaper than training.

Related: Model, Training
Generative AI

AI systems that create new content, such as text, images, audio, or code, rather than only classifying or predicting. They learn patterns from large datasets and generate novel outputs from prompts.

Related: Large Language Model, Prompt
Large Language Model (LLM)

A neural network trained on vast text corpora to predict and generate language. It can answer questions, summarize, translate, and write, based on patterns learned during training.

Related: Generative AI, Token
Token

A chunk of text, often a word or word fragment, that a language model processes as a unit. Token counts drive context limits, latency, and API cost.

Related: Large Language Model, Context Window
Prompt

The instructions or input text given to a generative AI model to elicit a response. Clear, specific prompts with context and examples generally yield better outputs.

Related: Prompt Engineering, Generative AI
Prompt Engineering

The practice of designing and refining inputs to a generative model to get accurate, useful, and safe outputs. Techniques include role instructions, examples, and structured formatting.

Related: Prompt, Hallucination
Hallucination

When a generative model produces confident but false or fabricated information. It occurs because the model predicts plausible text rather than verifying facts, so outputs need human review.

Related: Grounding, Human-in-the-Loop
Retrieval-Augmented Generation (RAG)

A technique that retrieves relevant documents from a knowledge base and supplies them to a language model before it answers. This grounds responses in current, verifiable sources and reduces fabrication.

Related: Grounding, Hallucination
Grounding

Anchoring a model's output in trusted, verifiable sources such as documents or databases. Grounded responses are more accurate and easier to audit than unconstrained generation.

Related: Retrieval-Augmented Generation (RAG), Hallucination
Context Window

The maximum amount of text, measured in tokens, that a model can consider at once when generating a response. Content beyond this limit is not seen by the model.

Related: Token, Large Language Model (LLM)
Fine-Tuning

Further training of a pre-trained model on a smaller, domain-specific dataset to adapt its behavior. It can improve specialized performance but requires quality data and careful evaluation.

Related: Training, Large Language Model (LLM)
Data Quality

The degree to which data is accurate, complete, consistent, timely, and fit for its intended use. Poor data quality directly degrades model performance and business trust.

Related: Data Governance, Training Data
Data Governance

The policies, roles, and processes that manage data availability, usability, integrity, and security across an organization. It establishes who can access and use data, and how.

Related: Data Quality, Data Lineage
Data Lineage

A record of where data comes from, how it moves, and how it is transformed over time. It supports traceability, debugging, and compliance audits of AI systems.

Related: Data Governance, Model Card
Bias (in AI)

Systematic unfairness in model outputs that disadvantages certain groups, often arising from biased training data or flawed design. It can cause discriminatory outcomes in hiring, lending, and other decisions.

Related: Fairness, Training Data
Fairness

The principle that AI systems should treat people and groups equitably and avoid unjustified disparate impact. It is often measured and monitored across demographic groups.

Related: Bias (in AI), Responsible AI
Explainability

The ability to describe how and why a model produced a given output in terms understandable to stakeholders. It supports accountability, debugging, and regulatory compliance, especially for high-stakes decisions.

Related: Transparency, Responsible AI
Transparency

Openness about how an AI system works, what data it uses, and its limitations. It helps users and auditors assess whether to trust and rely on the system.

Related: Explainability, Model Card
Responsible AI

The practice of designing, building, and deploying AI in line with ethical principles such as fairness, safety, accountability, and human oversight. It aims to prevent harm and build trust.

Related: AI Governance, Fairness
AI Governance

The structures, policies, and controls an organization uses to ensure AI systems are developed and used lawfully, ethically, and safely. It assigns accountability and sets risk-management processes.

Related: Responsible AI, Model Risk Management
Model Risk Management

The process of identifying, assessing, and mitigating risks that AI models produce wrong or harmful outputs. It includes validation, monitoring, and documented controls throughout the model lifecycle.

Related: AI Governance, Model Monitoring
Model Monitoring

Ongoing tracking of a deployed model's performance, inputs, and outputs to detect degradation or drift. It triggers retraining or intervention when behavior falls outside acceptable limits.

Related: Data Drift, Model Risk Management
Data Drift

A change over time in the statistical properties of production data compared with the data a model was trained on. It can silently degrade accuracy and is a key monitoring signal.

Related: Model Monitoring, Model
Human-in-the-Loop

A design where people review, approve, or correct AI outputs before they are acted upon. It adds oversight for high-stakes or uncertain decisions and helps catch errors.

Related: Hallucination, Responsible AI
PII (Personally Identifiable Information)

Data that can identify a specific individual, directly or in combination, such as names, addresses, or identifiers. Handling it requires privacy safeguards and legal compliance.

Related: Data Governance, Data Privacy
Data Privacy

The protection of personal information from unauthorized access, use, or disclosure. AI systems must collect and process personal data lawfully and with appropriate consent and security.

Related: PII (Personally Identifiable Information), AI Governance
Model Card

A short document describing a model's purpose, training data, performance, limitations, and intended uses. It promotes transparency and helps users judge whether the model suits their needs.

Related: Transparency, Data Lineage
Proof of Concept (PoC)

A small, time-boxed pilot that tests whether an AI idea is technically feasible and worth pursuing. It is not production-ready but informs investment and design decisions.

Related: Minimum Viable Product (MVP), AI Project Lifecycle
AI Project Lifecycle

The end-to-end stages of an AI initiative: problem framing, data preparation, model development, evaluation, deployment, monitoring, and retirement. Each stage has distinct deliverables and risks.

Related: Model Monitoring, MLOps
MLOps

The practices and tooling for reliably building, deploying, and maintaining machine learning systems in production. It applies software engineering and automation to the model lifecycle.

Related: AI Project Lifecycle, Model Monitoring
Return on Investment (ROI)

The financial benefit gained relative to the cost of an AI initiative. It helps justify investment and compare competing use cases on measurable business value.

Related: Business Value, AI Project Lifecycle
AI Use Case

A specific business problem or opportunity where AI can deliver value, such as automating document review or forecasting demand. Use cases should be prioritized by feasibility and impact.

Related: Return on Investment (ROI), Proof of Concept (PoC)