AI Terminology Guide

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Plain-English Guide to AI, Agents, and Workflows

Artificial Intelligence is evolving quickly, and so is the language used to describe it.

Terms like model, prompt, grounding, agent, workflow, and agentic application appear constantly in product announcements, webinars, articles, and technology discussions. The challenge is that many of these terms are often used interchangeably, even when they describe very different capabilities.

As organizations begin exploring AI, Oracle Fusion Agentic Applications, Oracle AI Agent Studio, and other emerging technologies, having a shared understanding of the terminology becomes increasingly important. A model is not an agent. An agent is not a workflow. A workflow is not an agentic application. Understanding these distinctions helps organizations evaluate opportunities, ask better questions, and build a stronger foundation for AI adoption.

This guide serves as a reference point for the terminology used throughout Elire's AI content and Oracle AI blog series.

Core AI Terminology

Term	Definition
Model / LLM	The AI engine that processes language and generates/reasons over output.
Prompt	Instruction or request given to AI.
Token	A unit of text the model processes; relevant to context and output limits.
Context	Background information the AI needs to do useful work.
Grounding	Connecting AI to trusted facts, documents, data, or systems.
Hallucination	A confident but false AI output.
AI Slop	Polished but low-value output that may sound professional, but lacks rigor, specificity, judgment, or real usefulness.

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While these terms describe how AI works, they do not explain how AI begins participating in business processes. That is where agentic AI terminology becomes important.

Agentic AI Terminology

Term	Definition
Skill	A reusable AI pattern for a task.
AI Agent	A specialized AI capability that can interpret context, use tools, and take steps toward a goal.
Agent Team	Multiple agents or tools coordinated around a task or process.
Workflow	A repeatable sequence of work. In AI Agent Studio, workflow agent teams can be deterministic, node-based flows.
Workflow Agent Team	A structured node-based sequence for deterministic, rule-based orchestration.
Governance	Defines rules, ownership, review, risk, and accountability.
Agentic App	A productized application that bundles agents with integrations, knowledge, controls, and a business-facing experience.
Object-Based Workspace	A workspace where users define an outcome and specialized agents collaborate to achieve it.

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These concepts form the foundation for many of the AI capabilities now being introduced across enterprise applications, including Oracle Fusion.

Oracle AI Terminology

Term	Definition
Fusion Agentic Application	Oracle-delivered agentic application built into Oracle Fusion Cloud Applications.
AI Agent Studio	The Oracle environment for creating, configuring, validating, deploying, observing, and measuring agents and agentic applications.
Agentic Applications Builder	A capability for composing and building outcome-focused agentic applications.

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Understanding these terms helps organizations move beyond AI buzzwords and better understand how emerging technologies fit into real business processes and enterprise systems.

Continue Your AI Learning Journey

Understanding the terminology is only the first step.

As AI continues evolving, organizations are being asked to evaluate new technologies, rethink business processes, and determine where AI can create meaningful value. Having a shared vocabulary provides a foundation, but understanding how these concepts apply in practice is what ultimately drives successful adoption.

Visit Elire's YouTube channel for additional AI, PeopleSoft AI, Oracle Fusion Cloud, and Oracle AI Agent Studio content, including product updates, demonstrations, practical use cases, and discussions on the future of enterprise AI.

If you're evaluating how AI fits into your organization's strategy, roadmap, or enterprise applications, contact Elire to discuss practical next steps and opportunities for your business.

Authors

Author Title

Chris Costakes

Mr. Costakes serves as Elire’s Cloud Center of Excellence Lead, overseeing Elire’s Cloud ERP, Cloud HCM, and Cloud Transformation Practice Areas. Chris has 20+ Years of PeopleSoft and Oracle Cloud Experience, excelling in transforming organization’s IT footprint by migrating from on-premise applications to Oracle Cloud.