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AI 101: start here2 min readBeginner

The AI words you keep hearing, explained

Tokens, hallucinations, agents, AGI: a friendly guide to the AI words that keep cropping up, what they mean and why they matter to you.

2 min read 1:18 video with captions
Video transcript

Tokens, hallucinations, agents, AGI. AI comes with a lot of jargon. Here are the words you keep hearing, in plain English.

Start with the basics. Machine learning means software learning from examples. What it learns is stored in a model. Large language models are the ones behind chat assistants: a kind of generative AI, because they create new text.

You type a prompt into an AI assistant. It reads and writes in tokens, small chunks of text, and its context window is how much it can keep in mind at once.

Many assistants are now multimodal. That means they understand more than text: you can show them a photo, talk out loud, or upload a document.

Then there are the quirks. A hallucination is a confident mistake, like a made-up fact. Sycophancy is when it tells you what you want to hear, rather than an honest view.

And three words you’ll hear more and more. AI agents carry out tasks for you, step by step. Open-weight models can be downloaded and run by anyone. And AGI, an AI as capable as people at almost anything, doesn’t exist yet.

Now you can follow the conversation. Read the full guide below for every word, with everyday examples.

In 30 seconds

  • Chat assistants run on large language models, which read and write text in small chunks called tokens.
  • AI’s two big quirks: hallucinations, or confident mistakes, and sycophancy, telling you what you want to hear.
  • Agents act for you, open-weight models can be run by anyone, and AGI doesn’t exist yet.

A colleague mentions “hallucinations”, the news is full of “AGI”, and an app invites you to try its new “agent”. If AI talk sometimes sounds like a foreign language, you’re not alone. Here are the words worth knowing, in plain English.

The basics

AI, short for artificial intelligence, is software that learns from examples instead of following rules written by hand. Every word below is a part of it, a way of using it or one of its quirks. For the bigger picture, see what AI is and how it works.

  • Machine learningLearning from examples rather than rules. is how your bank spots a card payment that doesn’t look like you.
  • ModelThe app is the car; the is the engine. A “new model” means a new engine under the same bonnet.
  • Generative AI creates something new, such as an email, a picture or a song, rather than just sorting what’s already there.
  • Large language modelThe engine inside chat assistants. A has learnt from so much text that it can write fluently, word by word.

Using it

  • : the chat app you actually use, such as ChatGPT, Claude or Gemini. Each has a large language model inside.
  • : your request. The more you explain what you want and who it’s for, the better the reply. Try our simple prompt recipe.
  • : a chunk of text, often part of a word. Models read and write in tokens, and their limits are counted in them too.
  • : how much it can keep in mind at once. In a very long chat, early details can drop out, so start a fresh chat for a new topic.
  • : able to handle more than text. Show it a photo of a boiler error code, or simply talk to it.

Its quirks

A is a confident mistake: a made-up quote, statistic or book, presented as fact. It happens because AI predicts likely words rather than checking them. Here’s how to catch one.

is AI’s habit of telling you what you want to hear. For an honest view, ask “What’s wrong with this plan?” rather than “Isn’t this a good plan?”

What’s next

  • AI agentAn doesn’t just answer: it acts. Ask it to book a table and it searches, clicks and fills in the form.
  • Open-weight modelAnyone can download an and run it on their own computers, so their data never has to leave the building.
  • AGI would match people at almost any thinking task. Some companies say they’re building it; experts disagree on when, or whether, it’ll arrive.

Agents are the ones to watch, as AI starts doing jobs for you: here’s what AI agents can do, and how to stay safe as you use AI.

Decode any AI word

Explain what [the AI word you’ve heard] means in plain English, with an everyday example. Then tell me why it might matter to someone like me: [who you are, such as a nurse, a student or a retired teacher].

Handy for any word that isn’t here. If it matters, check the answer against a trusted source.

Check yourself

3 quick questions nothing is saved
1What does “multimodal” mean?

2Your assistant says your plan is brilliant and finds nothing wrong with it. Which quirk might be at work?

3Which of these doesn’t exist yet?

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