The Index of AI Opens Q4 2026

The AI glossary.

Plain-language definitions for the terms that show up when you build with AI — each one written once, carefully, and linked to the tools it names and the guide that explains it in full.

22 Terms defined
Growing weekly

A

Agent

also: AI agent
Agents
A model given a goal, a set of tools it can call, and a loop — it decides which action to take next, runs it, reads the result, and repeats until the task is done or it gives up. The step up from a single prompt-and-answer to something that acts.

Attention

Concept
The mechanism that lets a model weigh which earlier words matter most when predicting the next one. The T in the Transformer, and the reason modern models handle long, context-dependent text.

C

Context window

also: context length
Concept
How much text a model can hold in mind at once, measured in tokens. Everything — your prompt, the documents you paste, the conversation so far, and the reply — has to fit inside it. Run over, and the earliest content falls out.

Chain-of-thought

also: CoT, reasoning
Concept
Prompting a model to work through a problem step by step before answering, instead of jumping to a conclusion. It trades speed and tokens for accuracy on anything that needs real reasoning.

E

Embedding

Infra
A list of numbers that captures the meaning of a piece of text, so that similar meanings sit close together. The thing a vector database stores and searches — the foundation of semantic search and RAG.

Eval

also: evaluation
Evals
A test suite for a model or an agent. You define what a good answer looks like, run the system against a fixed set of cases, and score the output — so a prompt or model change becomes a number you can compare, not a hunch.

F

Fine-tuning

Concept
Continuing to train a base model on your own examples so it picks up a style, format, or narrow skill. Powerful, but usually the last resort — prompting and retrieval solve most problems first, and cheaper.

Function calling

also: tool use
Agents
Letting a model trigger real code — a search, a database query, an API — by returning a structured request instead of prose. The bridge between a language model and the systems it needs to actually do the job.

G

GEO

Generative Engine Optimization
Concept
Shaping content so AI answer engines — ChatGPT, Gemini, Perplexity, Google's AI Overviews — cite it. The successor to SEO for a web where the model answers first and the click is rare.

Guardrails

Evals
Checks that sit around a model to keep its inputs and outputs in bounds — blocking unsafe requests, catching leaked data, forcing a valid format. What keeps a demo from becoming an incident in production.

H

Hallucination

Concept
When a model states something false with full confidence — an invented citation, a wrong number, a function that doesn't exist. It isn't lying; it's predicting plausible text. Retrieval and evals are how you catch it.

I

Inference

Infra
Running a trained model to get an answer — as opposed to training it in the first place. It's the part you pay for on every request, and where latency and cost live.

L

LoRA

Low-Rank Adaptation
Concept
A cheap way to fine-tune: freeze the giant base model and train a small set of add-on weights instead. Fraction of the compute, and you can swap adapters in and out for different tasks.

M

MCP

Model Context Protocol
Agents
An open standard for connecting models to tools and data through one common interface, so you don't hand-wire every integration. Think of it as a universal port for giving an agent new capabilities.

P

Prompt injection

Evals
An attack where hidden instructions in content the model reads — a web page, a document, an email — hijack what it does next. The top security risk for anything that lets a model act on untrusted text.

Q

Quantization

Infra
Shrinking a model by storing its weights at lower precision — 16-bit down to 8 or 4. It cuts memory and cost, and lets bigger models run on smaller hardware, for a small hit to quality.

R

RAG

Retrieval-Augmented Generation
Infra
Fetching relevant documents at question time and handing them to the model as context, so the answer is grounded in your data instead of the model's memory. The standard cure for hallucination and stale knowledge.

Reranking

Infra
A second-pass model that re-orders search results by how well each one actually answers the query. Bolted onto RAG, it lifts the best passages to the top before the model ever reads them.

S

System prompt

Concept
The standing instructions a model reads before any user message — its role, rules, and tone. It sets the frame for the whole conversation, and it's where most of the behavior you notice is actually decided.

T

Token

Concept
The unit a model reads and writes — a chunk of text roughly ¾ of a word. Context windows are measured in tokens, and API bills are counted in them, so it's the number that quietly governs both limits and cost.

Temperature

Concept
A dial from predictable to creative. Low temperature makes a model pick the safest next token every time; raise it and the output gets more varied and surprising — useful for brainstorming, risky for facts.

V

Vector database

also: vector store
Infra
A database built to store embeddings and find the closest ones fast. It's what makes semantic search and RAG work at scale — Pinecone, Qdrant, Weaviate and Chroma all live in this box.