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AI Terminologies Explained - Part 4

In the final part, we take a look at some more terminology, such as latency, bias, hallucinations and more.

General
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We’ve reached the final step. You’ve learned how AI thinks, how to communicate with it, and how to customize it into a true expert on your brand. Now it’s time to bring it all together and look at what it means to actually use AI in your day-to-day business.

Latency is the AI’s reaction time. If you are brainstorming ideas, a short delay is fine. But for customer-facing tools like chatbots, every second counts. Choosing the right model means balancing power with speed so your AI feels responsive.

🚨 Hallucinations happen when AI makes things up. It might confidently state something false or invent details that don’t exist.

⚖️ Bias comes from the data AI is trained on. Because it learns from human-created content, it can sometimes reflect stereotypes or unfair assumptions. Smart business owners always double-check the AI’s work and treat it like a junior employee: brilliant but imperfect.

🤖 Automation is where the real value comes in. Let AI handle repetitive tasks like drafting emails, sorting customer feedback, writing social posts, or summarizing reports. This frees your team to focus on strategy and creativity.

🧑‍💼 AI Agents are the next step. Instead of giving the AI one task, you assign it a whole project. For example, “plan and run a launch campaign.” An AI Agent could research competitors, draft emails, schedule social posts, and analyze results on its own. We are still early in this space, but it shows how AI is evolving from a tool into an autonomous team member.

And that completes the journey. You now understand how AI thinks, how to talk to it, how to customize it, and how to put it to work in your business. These are no longer abstract terms. They are the foundations of your new toolkit. The world is moving quickly, but you now have the knowledge to spot opportunities, save time, and serve your customers better.

The method

The prompts

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