Glossary A-Z

Essential AI terms for executive decisions

Use this glossary to align language across business, technology, legal, and compliance teams.

Shadow AI

Use of AI tools outside approved company processes, usually without inventory, governance, or risk control.

Guardrails

Technical and operational rules to prevent unsafe outputs, data misuse, and off-policy responses.

Model Routing

Strategy to direct each task to the most suitable AI model by cost, risk, and quality.

AI Inventory

Centralized list of AI tools, models, integrations, risk owners, and intended use cases.

Prompt Governance

Prompt standardization, usage review, and recommended practices by business unit.

AI Incident

An event involving AI that causes risk or damage, such as data leakage, harmful decisions, or unsafe outputs.

Vendor Lock-in

Excessive dependency on a single AI provider, increasing operational and cost risk over time.

AI Committee

Cross-functional group that approves use cases, defines policy, and monitors risk, cost, and compliance.

Risk Owner

Formal owner accountable for approving and managing AI risk for a tool or system.

AI Policy

Corporate document defining usage rules, restrictions, approvals, and accountability for AI.

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