What Are the Basic AI Terms I Need to Know in 2025?

The basic AI terms you need to know in 2025 are AI, LLM, Instruction, and No-Code. These core concepts describe how these systems work, how you control them, and how you can build powerful tools yourself without being a developer.

Ever been in a meeting where AI terms are flying around and you just nod along, hoping no one asks you a question? You are not alone. The world of AI has its own language, but you do not need a new dictionary to understand it.

Think of this as your friendly cheat sheet. No complex jargon, just simple definitions to help you understand the conversation and, more importantly, start creating.

Common AI Terms, Decoded

Here are the most common words you will encounter, translated into plain English.

Artificial Intelligence (AI)

• The Definition: The science of teaching computers to perform tasks that normally require human intelligence, like learning, reasoning, and solving problems.

• What It Means for You: It is the powerful engine behind tools that can write emails, answer customer questions, or brainstorm marketing ideas for you.

Large Language Model (LLM)

• The Definition: A type of AI that has been trained on a massive amount of text data from the internet, allowing it to understand and generate human-like language.

• What It Means for You: This is the “brain” you are talking to. When you build an AI assistant, you are choosing an LLM to power its conversations. Different models (like GPT-4o or Claude 3.5) have different strengths.

AI Agent

• The Definition: Can connect to external tools and apps (like Google Sheets, Stripe, Zapier, or APIs). They use these integrations to take action, gather data, trigger automations, or complete tasks across platforms without needing constant user input.

• What it means for you: With agents, you’re not just getting answers—you’re getting things done. They can book meetings, pull reports, send emails, or automate entire workflows across your business stack.

Automation

• The Definition: The technology by which a process or procedure is performed with minimal human assistance. In the context of AI, it means using intelligent systems to handle repetitive tasks or entire workflows.

• What It Means for You: This is how you get your time back. Automation can mean anything from automatically answering common customer questions to generating a weekly marketing report and emailing it to your team, all without you lifting a finger.

Chatbot

• The Definition: A computer program designed to simulate a conversation with human users, especially over the internet.

• What It Means for You: This is the friendly little window that often pops up on a website asking, “How can I help?” An AI assistant is like a super-powered, custom-trained chatbot.

Instruction

• The Definition: The specific command or set of directions you give to an AI to get it to perform a task.

• What It Means for You: This is your steering wheel. The quality of your instruction directly controls the quality of the AI’s response. It is the most important skill for a non-technical user.

No-Code

• The Definition: A method of building applications and software without writing a single line of traditional code, often using simple text inputs and visual interfaces.

• What It Means for You: This is your golden ticket. It means you have the power to build and launch your own AI assistant right now, regardless of your technical background.

API (Application Programming Interface)

• The Definition: A set of rules that lets different software applications connect and talk to each other.

• What It Means for You: Think of it as a translator helping your tools communicate. It is what allows your CRM to connect to your email marketing tool, powered by services like Zapier.

Hallucination

• The Definition: A phenomenon where an AI confidently generates false or incorrect information that it presents as fact.

• What It Means for You: This is why it is critical to give your assistant a Knowledge Base with your own specific business data. This ensures it relies on your facts, not its imagination.

Lemonade Lingo: Terms You’ll See on Our Platform

We make AI fun and fresh, but here are a few key terms you will see on LaunchLemonade.

• AI Assistants: Usually stay within a single environment (e.g. a chat interface).

• Respond only to what you ask—no outside integrations unless hard-coded.

• Knowledge Base: This is the collection of documents, website links, or text you upload. It becomes your assistant’s brain and its single source of truth.

• Stripe Integration: This is our no-code way of connecting your LaunchLemonade account to the Stripe payment platform, allowing you to easily sell access to your AI assistants.

Now that you can speak the language, it is time to join the conversation. The world of AI is more accessible than ever, and you have everything you need to start building.

Try LaunchLemonade right now.