Buzzwords you’ll hear, what they actually mean, and whether you need to care.
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MCP (Model Context Protocol)
A standard way to connect AI to your tools. Like a USB port: one plug shape that works with Slack, Gmail, Jira, and everything else. Without it, each tool needs its own custom integration.
You don’t build MCPs. You install them like browser extensions.
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Agent
An AI that takes action, not just answers. It reads your instructions (the Skill), uses tools, checks results, and keeps going until the job is done. A chatbot is one turn. An agent is a loop.
You’ve been using one this whole talk.
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Skill (SOP + Trigger)
A written procedure with a trigger phrase — step-by-step instructions an AI agent follows to complete a task. You define the goal, the steps, and the tools. The agent executes. “Skill” is the reusable playbook; “agent” is the system that runs it. Same pattern, different names: ChatGPT → Custom GPT, Gemini → Gem.
You built one in the “Build a Skill” panel. The pattern transfers to any product.
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App (Wrapper / Harness)
The app that wraps the AI model: ChatGPT, Claude Desktop, Copilot, etc. It manages your chat window, files, and tool connections, then sends everything to the AI. The AI itself has no memory — the app fakes it by re-sending your full conversation every time.
The “How AI Works” diagram shows exactly what it does behind the scenes.
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Context (Context Window)
Everything the AI can see in a single call — your conversation history, uploaded files, and instructions, bundled together. The AI has no memory; context is all it gets. When it fills up, older details get pushed out and quality drops.
The bonus panel shows exactly how this breaks down.
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API (Application Programming Interface)
How software talks to other software over the internet. When you send a message, the app makes an “API call” — it packages your conversation and sends it to the AI company’s server. You never see this; the app handles it.
Step 5 in “How AI Works” — the arrow leaving your computer.
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Orchestration
Multiple agents working together, each on a different piece. One does research, another writes, a third reviews. Like a team of specialists with a project manager.
Out of scope for beginners. Know it exists; don’t worry about it yet.
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RAG (Retrieval-Augmented Generation)
The AI searches your documents first, then answers based on what it found, instead of guessing from memory. Like handing someone a reference binder before asking them a question.
Useful when you hear “it can search your docs.” That’s RAG.
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Tokens
How AI measures text. Roughly 1 token ≈ ¾ of a word. Every AI model has a token limit, the maximum it can read and write in one go. Hit the limit and older context gets dropped.
You saw this in the Context Rot demo. It’s why long chats degrade.
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Fine-tuning
Training an AI model on your own data so it gets permanently better at a specific task. Expensive, slow, and rarely needed. Different from giving it instructions (that's prompting).
You almost certainly don’t need this. Prompting + tools gets you 95% there.
✏️
Prompt Engineering
Writing clear instructions for AI. Same skill as writing a good email to a new hire. Be specific about what you want, in what format, and what “done” looks like.
You just did this when you wrote your Skill prompt.
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AI Products (ChatGPT, Claude, Gemini, Copilot)
What they share: a chat interface, API access to models, and project workspaces. Key differences: Claude has Skills/MCPs + Code (terminal agent) + CoWork (teams). ChatGPT has desktop agents + GPTs + custom actions. Gemini has deep Google integration.
Pick one, learn it deeply. They all access similar underlying models.
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Claude Flavors (Chat, Code, CoWork)
Chat = web interface (claude.ai), good for Modes 0–2. Code = terminal/IDE agent, good for Modes 2–4. CoWork = team workspace with shared projects and knowledge.
Start with Chat. Move to Code when you’re ready for agents.