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AI Agent
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A software system that uses a language model to plan and take actions toward a goal, calling tools and APIs rather than only answering questions. Agents loop between reasoning and acting, which lets them handle multi-step tasks with limited human input.
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LLM (Large Language Model)
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A model trained on vast text that generates and understands natural language. LLMs are the reasoning core of modern AI agents, but they need grounding, tools and guardrails to be reliable in production.
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RAG (Retrieval-Augmented Generation)
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A technique that fetches relevant documents from a knowledge base and feeds them to the model so answers are grounded in current, specific data. RAG reduces hallucination and lets an agent work with private or up-to-date information.
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Tool Calling
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The mechanism that lets an agent invoke external functions, APIs or databases to act in the world. Well-defined tools with clear inputs and outputs are what turn a chatbot into an agent that can actually get work done.
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Hallucination
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When a model produces fluent output that is factually wrong or invented. It is the central reliability risk in AI systems, mitigated with retrieval, verification steps and constraining the model to trusted data and tools.
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Vector Database
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A store that holds text as numerical embeddings and retrieves items by semantic similarity rather than exact keywords. It is the retrieval layer behind most RAG systems, letting an agent find relevant context fast.
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Prompt Engineering
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Designing the instructions and context given to a model to get reliable, well-formatted results. In agents this extends to system prompts, tool descriptions and examples that shape how the model reasons and acts.
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Guardrails
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The checks and limits that keep an agent behavior safe and on-task, such as input validation, output filtering and action approval. Production agents need guardrails to prevent harmful, off-topic or runaway actions.