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The glossary · Vol. 01

Claude and AI,defined plainly.

The words you will hear when your business starts using Claude, each explained in a sentence or two, with cross-references and guides when you want to go deeper.

Claude
9
AI basics
7
Building
9
Safety
6
Strategy
4
Term of the moment01 / 08

MCP

/em·see·pee/abbreviation

Model Context Protocol

1.An open standard for connecting AI assistants to other systems, describing what the assistant can look up and which actions it may take.

35 terms

A

7 entries

Agent/ay·jənt/noun

Building

An AI system that works towards a goal over several steps, deciding which tools to use and what to do next, rather than answering a single question. Good business agents run within clear limits and hand decisions back to a person.

AI auditnoun

Strategy

A structured review of where AI can help a business, team by team, ending in a prioritised list of opportunities, risks and first steps. It is the usual starting point for an AI strategy.

AI strategynoun

Strategy

A plan for where and how a business will use AI, tied to its goals: which opportunities to pursue first, which tools to use, how data stays safe and how the team will be trained.

AI usage policynoun

Safety and data

A short document that tells staff which AI tools they may use for work, what data must never go into them and who checks the output.

Anthropic/an·thro·pik/proper noun

Claude

The AI safety and research company that builds Claude. Anthropic offers Claude through its own apps, business plans and the Claude API.

API/ay·pee·eye/abbreviation

Building · Application programming interface

A way for software to talk to other software. The Claude API lets developers build Claude into their own tools, websites and workflows, and is billed by usage.

Artifacts/ar·ti·facts/plural noun

Claude

Standalone pieces of content that Claude creates in a separate window alongside the chat, such as documents, code, diagrams or small interactive tools, which you can edit, reuse and share.

B

1 entry

Batch processingnoun

Building

Sending many API requests to be processed together, rather than one at a time, in exchange for lower cost and slower turnaround. Suited to non-urgent, high-volume work.

C

7 entries

Claude/klawd/proper noun

Claude

Anthropic's AI assistant, used by businesses for writing, analysis, research, coding and reasoning across long documents. It is available in apps for web, desktop and mobile, and through the Claude API.

Claude Codeproper noun

Claude

Anthropic's agentic coding tool. It works in a codebase from the terminal, an IDE or the web, and can read code, run commands, make changes across files and prepare pull requests for engineers to review.

Claude Enterpriseproper noun

Claude

Anthropic's business plan for larger organisations and those with stricter security, identity, audit or contract requirements.

Claude Teamproper noun

Claude

Anthropic's business plan for small and medium teams, with a shared workspace, admin controls, central billing and commercial data terms.

CLAUDE.md/klawd dot em·dee/noun

Building

A project memory file in a code repository that tells Claude Code how the project works: commands, architecture, conventions and anything that needs care. It is read at the start of each session.

Connector/kə·nek·tə/noun

Claude

A secure link between Claude and another tool, such as email, file storage, a calendar or a CRM, so Claude can find information and, where allowed, take actions there. Connectors work within each person's own permissions.

Context windownoun

AI basics

The amount of text an AI model can consider at once, including your instructions, documents and the conversation so far. A larger context window lets Claude work with longer documents in one go.

D

1 entry

DPIAabbreviation

Safety and data · Data protection impact assessment

A process under UK and EU data protection law for identifying and reducing the risks of processing personal data. It may be required before using AI on certain kinds of personal data.

F

1 entry

Fine-tuningnoun

Building

Further training a model on your own examples to change its behaviour. Most businesses get what they need faster and more cheaply with good instructions, Projects, Skills and retrieval instead.

G

1 entry

Generative AInoun

AI basics

AI that creates new content, such as text, images or code, in response to instructions. Claude is a generative AI assistant.

H

2 entries

Hallucination/hə·loo·si·nay·shən/noun

AI basics

When an AI model states something that sounds plausible but is wrong or made up. The safeguards are grounding answers in your own sources and having a person check facts before anything is used.

Human in the loopphrase

Safety and data

A working rule that a person reviews and approves AI output before it is sent, published or acted on. It is the most important safeguard in a business rollout.

L

1 entry

Large language modelnoun

AI basics · LLM

The type of AI model behind assistants like Claude. It is trained on large amounts of text and predicts language, which lets it write, summarise, analyse and reason.

M

2 entries

MCP/em·see·pee/abbreviation

Building · Model Context Protocol

An open standard for connecting AI assistants to other systems, describing what the assistant can look up and which actions it may take. Many Claude connectors are built on MCP, and custom ones can be built for your own tools.

Model/mod·əl/noun

AI basics

A specific version of an AI system. Claude comes in a family of models: larger ones for harder reasoning and smaller, faster ones for simple, high-volume tasks.

O

1 entry

Opportunity mapnoun

Strategy

A list of every place AI could help a business, scored for impact and effort, used to decide what to do first. Quick wins are high-impact, low-effort opportunities.

P

4 entries

Project/proj·ekt/noun

Claude · Claude Projects

A shared workspace in Claude that holds a team's documents and instructions, so every conversation in it starts with the right knowledge and context.

Prompt/prompt/noun

AI basics

The instruction or question you give an AI model. Clear prompts with context, examples and the format you want produce much better results.

Prompt cachingnoun

Building

An API feature that stores repeated context, such as long instructions or documents, so later requests that reuse it are faster and cheaper.

Prompt injectionnoun

Safety and data

An attempt to hijack an AI system by hiding instructions in content it reads, such as a web page, email or document. It is guarded against with limited permissions and human approval for actions.

Q

1 entry

Quick winnoun

Strategy

An AI opportunity that delivers clear value with little effort or risk, such as drafting routine replies. Rollouts usually start with quick wins to build confidence.

R

1 entry

RAG/rag/abbreviation

Building · Retrieval-augmented generation

A technique where relevant information is looked up from your own documents or data and given to the model with the question, so answers are grounded in your sources.

S

3 entries

Skill/skil/noun

Claude · Claude Skills

A package of instructions, and optionally templates, examples and scripts, that teaches Claude a repeatable process, such as writing a proposal your way. Claude uses a Skill automatically when a task calls for it.

SSOabbreviation

Safety and data · Single sign-on

Signing in to many tools with one company account. On business AI plans it lets IT control access centrally and remove it instantly when someone leaves.

System promptnoun

Building

Standing instructions given to a model before the conversation, setting its role, rules and tone. In custom tools, the system prompt is where most of the behaviour is defined.

T

2 entries

Token/toh·kən/noun

AI basics

A small chunk of text, often part of a word, that AI models read and write in. API usage and context windows are measured in tokens.

Training datanoun

Safety and data

The data used to train an AI model. On Anthropic's commercial plans, business conversations are not used to train models by default; always check the current terms for your plan.

From AI curious to AI capable

Find out what AI can do for your business.

Start with an audit. You will know exactly where AI fits, what to do first and what it should give back. Your report looks something like this.