AI Glossary

    All important technical terms around the company cockpit, AI agents and AI strategy — clearly explained for SMEs.

    Company cockpit

    Central control for AI agents

    A company cockpit maps a company's structure and brings phone, e-mail, inbox and forms together in one place. In it, AI agents take over recurring tasks such as inquiries, quotes, receipts, appointments and knowledge questions; the team sees everything at a glance, steers the agents and approves. mysoftwarelab builds the cockpit individually and runs it as an external AI department.

    AI agent

    Autonomous task-handling AI

    An AI agent is an AI that handles a task end to end on its own – e.g. capturing a customer inquiry, preparing a quote or matching a receipt – instead of just generating text. In the company cockpit, agents work with clear tasks, hand-offs and approvals: agents take over tasks, not people.

    AI Maturity Level

    AI Maturity Level

    The AI maturity level describes how far a company has progressed in adopting and using artificial intelligence. Typically 5 stages: (1) Awareness, (2) Experiments, (3) Pilots, (4) Scaling, (5) AI-native company. The maturity level determines the right entry strategy.

    Related terms:AI Roadmap, AI Potential Check, AI Strategy

    AI Roadmap

    AI Implementation Roadmap

    An AI roadmap is a structured timeline for the step-by-step introduction of AI solutions in a company. It includes use case prioritization, resource planning, milestones and KPIs. A typical AI roadmap for SMEs has a horizon of 12–24 months.

    Related terms:AI Strategy, AI Pilot Project, AI Maturity Level

    SME

    Small and medium-sized enterprises

    SMEs are companies with fewer than 250 employees and annual revenue under €50 million (EU definition). In Germany, around 99% of all companies belong to the Mittelstand. mysoftwarelab works with companies from 20 employees: there, AI agents in the company cockpit take over recurring tasks.

    Prompt Engineering

    Targeted AI instructions

    Prompt engineering is the art of formulating instructions (prompts) for AI systems such as ChatGPT or Claude so that they consistently deliver high-quality results. Well-designed prompts can solve 80% of quality issues with AI outputs. A key competency for AI adoption.

    Related terms:LLM, ChatGPT, Generative AI

    LLM

    Large Language Model

    LLMs are AI models trained on huge amounts of text that can understand and generate natural language. Well-known LLMs: GPT-4 (OpenAI), Claude (Anthropic), Gemini (Google). They are the technical foundation for chatbots, text creation, code generation and many automation processes.

    Related terms:Generative AI, ChatGPT, Prompt Engineering

    Generative AI

    Artificial intelligence for content creation

    Generative AI refers to AI systems that can create new content — text, images, audio, video or code. In a business context, it is used for text automation, image generation, customer communication and software development. Difference from classical AI: creates instead of only analyzing.

    Related terms:LLM, Prompt Engineering, AI Use Cases

    AI Use Case

    Concrete AI application

    An AI use case is a specific business process that can be improved or automated through AI. Examples: automatic invoice processing, AI customer support, predictive maintenance, AI-supported quote generation. Identifying suitable use cases is the first step in any AI adoption.

    Related terms:AI Potential Check, ROI, Process Automation

    ROI

    Return on Investment

    ROI measures the ratio of profit to investment costs. Typical for AI projects: initial investment (consulting + implementation) vs. ongoing savings (time savings, error reduction, higher conversion). Our clients typically achieve 60–80% cost savings in automated areas, with ROI realized after 6–14 months.

    AI Pilot Project

    First controlled AI deployment

    An AI pilot project is a time-limited, controlled first test of an AI solution in a company. Goal: prove feasibility, measure ROI and test acceptance — before full scaling begins. Typical duration: 4–8 weeks. Important: define clear success criteria.

    Change Management

    Managing organizational change

    Change management describes all measures that accompany employees during the introduction of new technologies. Particularly important for AI projects: reducing fears ("AI will take my job"), training, clear communication and early involvement. 70% of all AI projects fail not because of technology, but because of change management.

    Related terms:AI Pilot Project, AI Training, AI Maturity Level

    Process Automation

    Automation of business processes

    Process automation means replacing recurring manual tasks with software or AI. AI automation goes beyond classical RPA: it can process unstructured data, understand natural language and make context-dependent decisions. Typical savings: 60–80% of manual processing time.

    Related terms:RPA, AI Use Case, ROI

    EU AI Act

    EU regulation on artificial intelligence

    The EU AI Act is the world's first comprehensive AI regulation, which entered into force in August 2024. It classifies AI systems by risk level (unacceptable, high, limited, minimal) and prescribes requirements for transparency, documentation and human oversight. Relevant for SMEs from 2025.

    Related terms:AI Governance, AI Compliance, AI Ethics

    AI Governance

    AI control and oversight

    AI governance comprises all rules, processes and structures that ensure the responsible use of AI in the company. This includes: data quality assurance, bias detection, audit trails, compliance with the EU AI Act and internal AI guidelines. The foundation for trustworthy AI.

    Related terms:EU AI Act, AI Ethics, AI Compliance

    Predictive Maintenance

    Forward-looking maintenance

    Predictive maintenance uses AI and sensor data to predict machine failures before they occur. Typical in manufacturing: reduction of unplanned downtime by 40–60%, extension of machine lifespan by 20–30%. Especially relevant for mechanical engineering SMEs.

    Related terms:AI Use Case, IoT, Manufacturing

    RAG

    Retrieval-Augmented Generation

    RAG is an AI architecture that connects LLMs with your own knowledge base. The result: an AI system that answers based on your own documents, manuals or product data — without hallucinations. Frequently used for internal knowledge bases and customer chatbots.

    Related terms:LLM, AI Use Case, Generative AI