Glossary

An AI glossary for organizations, explained simply for executives

In short

This glossary explains the enterprise AI terms executives hear most often, such as RAG, MCP, AI agent, Private AI and Second Brain. The language is simple and no technical background is needed. Each term has a general meaning and an example of how Phak AI uses it in an organization.

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Question

The vendor says the system uses RAG. What does that mean?

Phak AI

RAG is a technique where AI searches documents before answering, so answers rest on real data and cite sources.

Source: Phak AI glossary
AI terms executives hear often, explained in plain language

Why executives should know enterprise AI terms

Choosing an AI system means talking with vendors and your IT team in the same language. If you know a few key terms, you can ask the right questions: Does it answer from our data? How does it connect to our existing systems? Where does our data live?

We picked the terms you will hear most and explain each one briefly and directly.

AI terms worth knowing

Knowledge and search

RAG

A technique where AI looks up documents before it answers, so the answer rests on real data and can cite its sources.

Integration

MCP

A common standard that lets AI connect to different systems, like a universal power plug.

Doing the work

AI Agent

AI that does more than answer questions. It carries out work step by step, using different tools.

Security

Private AI

AI that runs in an environment your organization controls, so your data is not mixed with anyone else's.

Concept

Second Brain

A second brain for the organization that keeps knowledge from walking out the door when people leave.

Read the explanation for each term

Pick the term you are curious about.

Frequently asked questions

How technical do I need to be before using AI in my organization?

Not very. If you understand the basics of terms like RAG, MCP and Private AI, you can ask a vendor whether the system answers from your data, how it connects to existing systems, and how your data is controlled.

How does Phak AI use these ideas?

Phak AI uses RAG to answer from your organization's documents with sources, MCP to connect existing systems, and a dedicated server for each organization, together forming the central AI brain of the company.

Will you add more terms?

We will keep adding terms that executives ask about often. If there is a term you would like explained, ask our team.

Talk to the Phak AI team

Tell us about your business. The Phak AI team will show you the systems that fit and plan the rollout with you, without replacing what you have.

1 Share your goalsWe help you rank the work where AI helps your business most.
2 See the system at workWatch it run on sample data from your business before you decide.
3 Install and go liveInstalled on your own dedicated server, connected to the systems you use.