Glossary

Glossary

TermExplanation
AgentAI given a goal, tools and permissions that carries out several steps by itself (e.g. Copilot Cowork, a custom Copilot Studio agent).
Agent 365Microsoft’s tool to inventory, identify, govern and block AI agents in a company.
AI ActThe EU regulation on artificial intelligence. It classifies AI by risk: prohibited, high risk, transparency, minimal.
AI literacyCompanies’ duty to support people who use or decide about AI in understanding it (AI Act Art. 4).
BaselineThe measured state before a change – without it, benefit can’t be proven.
Copilot CoworkA Microsoft 365 Copilot mode to which you delegate a longer multi-step task; charged by consumption.
Copilot StudioA tool for building agents with actions and connectors to company systems.
Deployer / providerAI Act roles: who uses AI (deployer) vs who develops it and places it on the market (provider).
DPIAData protection impact assessment – for high-risk processing (GDPR Art. 35).
EvaluationSystematic testing of AI quality on a test set of questions – accuracy, grounding, safety.
Generative AIAI that creates new content: text, images, code (Copilot, ChatGPT, Claude, Gemini).
Grounding (RAG)AI answers from retrieved company documents, not “from memory”, and cites the source.
GuardrailsLimits – content filters, topic and action restrictions, abuse protection.
HallucinationA plausible-sounding but false AI answer.
Jagged frontierAI excels at some tasks and fails at similar-looking ones – you can’t see it from outside.
Microsoft FoundryAn Azure platform for building custom AI apps and agents (formerly Azure AI Foundry).
Microsoft ScoutMicrosoft’s always-on personal agent (preview since 6/2026); works without prompting.
OversharingDocuments shared too widely – AI finds and uses them.
Predictive AIMachine learning that forecasts or classifies (failure, anomaly, demand).
Prompt injectionAn attack where hidden instructions in an e-mail or document take control of the AI.
Realisation factorThe share of saved time that actually turns into value.
Shadow AIAI tools employees use without company approval.