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The words on the box, in plain English

18 terms you'll run into on pricing pages, and why each one matters to a small shop.

AI (artificial intelligence)

Software that does tasks that used to need a person to think them through, like writing a draft, sorting messages or answering a question.

Why it matters: On a box, "AI" can mean anything from a big new feature to a small autocomplete. Ask what it actually does for you.

AI agent

An AI that doesn’t just answer, but takes steps for you, like replying to a customer or updating a record.

Why it matters: More useful, and more risk. Check what it is allowed to do on its own.

AI assistant or chatbot

A program you type (or talk) to in plain language, and it answers in plain language.

Why it matters: Good for drafts and questions. It is not a person and can be wrong.

API

A way for software to talk to other software directly. Mostly something a developer sets up.

Why it matters: You can usually ignore it unless you have someone technical helping.

Automation

Setting up a job to run by itself: "when a form comes in, add a row to my spreadsheet."

Why it matters: Start with one small chore and watch it for a week.

Billed annually

The monthly price shown assumes you pay a year up front.

Why it matters: Paying month to month often costs more.

Credits

A usage allowance. Each action (an answer, a minute of audio, a task) spends some.

Why it matters: Estimate how much you would use so the bill isn’t a surprise.

CRM (customer relationship management)

A shared address book with history: who your customers or donors are and what you last talked about.

Why it matters: Useful once more than one person talks to the same customers or donors.

Free plan

A version you can keep using without paying, with limits.

Why it matters: Read the limits: users, contacts, messages or features.

Free trial

The full or paid version for a set number of days, then you pay or stop.

Why it matters: Put the end date on your calendar.

Hallucination

When an AI states something false as if it were true, like a made-up fact, price or quote.

Why it matters: Check names, numbers and facts before anything goes out under your name.

Integration

A built-in connection between two apps so they can share information.

Why it matters: Check that a tool connects to the apps you already use before you switch.

Large language model (LLM)

The engine inside most AI writing tools. It has read a huge amount of text and predicts what words should come next.

Why it matters: It explains why AI writes fluently but can still make things up.

Per seat or per user

You pay for each person who logs in.

Why it matters: A $10 plan for a five-person team is $50.

Prompt

What you type to tell an AI what you want.

Why it matters: Clear, specific prompts with context ("we are a two-person bakery") get much better results.

Summary

A short version of something longer, like the main points of a meeting.

Why it matters: Handy, but skim the original for anything important it left out.

Training data

The text, images or other material an AI learned from.

Why it matters: Some tools may learn from what you type. Their privacy terms say whether they do.

Transcription

Turning speech from a call or meeting into written text.

Why it matters: Tell people before you record or transcribe them.