AI Glossary
What it means, why it matters to your business, and where it shows up in a real build decision.
Also known as Application Programming Interface
In plain terms
An API is a defined way for two software systems to talk to each other, and it is how most AI capability is delivered into your own products. Using AI through an API means you rent capability on demand instead of hosting models yourself. Your cost and availability then depend on a provider you should choose deliberately.
An API is the drive-through window. You place your order through a defined interface. The kitchen handles everything behind the counter. You get the output without seeing or managing the process.
A CRM platform adds an AI summarization button. It sends the customer record to an LLM API and displays the summary in the sidebar. The entire integration is a few dozen lines of code with no AI infrastructure to manage.
For accessing AI capability in your products without running your own models. The trade-off is convenience and speed against dependency on the provider's uptime, pricing, and data handling terms.
When sending data through a third-party API violates data sovereignty or compliance requirements. In those cases, evaluate open-weight models on your own infrastructure.
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