Glossary: Key AI Terms for Small Businesses

A simple, easy-to-read glossary of common AI terms for small business owners and beginners.

A software tool powered by artificial intelligence that interacts with customers, answering questions and automating tasks like customer support.

💡 Example: Sarah uses Tidio to handle customer inquiries 24/7 for her boutique.

A broad term referring to computer systems designed to perform tasks that normally require human intelligence, like understanding language, making decisions, and solving problems.

💡 Example: ChatGPT and Claude are both powered by AI.

A software tool powered by artificial intelligence that interacts with customers, answering questions and automating tasks like customer support.

💡 Example: Example: ManyChat and Tidio are chatbots used for customer engagement. Sarah uses Tidio to handle customer inquiries 24/7 for her boutique.

Automated actions are triggered by specific user behaviors, like clicking a button or spending time on a page.

💡 Example: ManyChat uses behavioral triggers to send personalized messages. 

AI that can engage in realistic, back-and-forth conversations with users, not just giving static answers but responding contextually.

💡 Example: Perplexity AI and Jasper AI use conversational AI for better user interaction.

The ability of an AI to remember previous interactions and adjust responses accordingly.

💡 Example: Jasper AI remembers past conversations to provide consistent replies.

How a business interacts and builds relationships with customers, often through support, messaging, or personalized experiences.

💡 Example: Copilot.Live improves customer engagement across multiple channels.

 Use of  AI tools to manage routine customer inquiries reduces the need for human agents and saves time.

💡 Example: Sarah’s chatbot automates responses to questions like “Where is my order?”

A visual interface that lets you build chatbots or websites by dragging elements and dropping them where you want; no coding is required.

💡 Example: Botpress offers a drag-and-drop builder for creating custom chat flows.

AI tools are designed to enhance online stores, such as personalized product recommendations or cart abandonment recovery.

💡 Example: Lisa uses Klaviyo AI to send emails that recover abandoned carts in her artisanal goods store.

A pricing structure where basic features are free, but advanced features require payment.

💡 Example: Botpress offers a freemium plan up to 2,000 messages/month.

A type of AI that creates content, like social media posts, emails, or chatbot responses, is often used in marketing.

💡 Example: Jasper helps John create Instagram captions that showcase the special offerings at his restaurant.

An advanced type of AI model developed by OpenAI that generates human-like text based on prompts.

💡 Example: ChatGPT uses GPT-4 to write emails, create content, and answer questions.

These AI systems help e-commerce businesses predict demand and optimize their inventory.

💡 Example: Lisa uses TradeGecko AI (now known as QuickBooks Commerce) to ensure her artisanal goods store does not run out of popular soaps.

Connecting one tool with another (like connecting your chatbot with your CRM or email system) to streamline workflows.

💡 Example: Zoho SalesIQ integrates with Zoho CRM to unify customer data.

This feature offers website visitors the opportunity for immediate communication with a human support agent, usually through a chat window.

💡 Example: Zoho SalesIQ and Tidio offer live chat alongside automated bots. 

AI solutions that assist with creating content, targeting ads, and analyzing campaigns for small businesses.

💡 Example: John uses SEMrush AI to track the performance of his restaurant’s ads.

The ability of an AI tool to understand and generate content in multiple languages.

💡 Example: Gemini supports over 40 languages, making it great for global businesses.

The ability of machines to understand and respond to human language in a natural way, like how we talk or write.

💡 Example: Claude excels at NLP, making its responses feel more like talking to a real person.

A tool that is easy to install and start using right away, with no complicated setup needed.

💡 Example: Tidio is known for its plug-and-play integration.

An AI process that analyzes customer feedback to detect emotions, helping prioritize urgent issues.

💡 Example: Sarah uses Medallia AI to flag a customer’s complaint about a late delivery.

You can customize pre-written formats for your own needs, like ad copy, social posts, or email drafts.

💡 Example: Jasper AI offers templates for marketing content.

Why This Glossary Matters for Small Businesses

Understanding these terms helps you:

  • Choose the right AI tools for your business
  • Communicate better with tech-savvy partners or developers
  • Make informed decisions when setting up automation or chatbots

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