RAGENT Private AI for Enterprise

Glossary

The language around private AI is full of terms that sound harder than they are. This page explains the ones you are likely to meet — in a meeting with us, in a vendor's brochure, or in a conversation with your IT team.

Nothing here is specific to our product. It is the vocabulary of the field.

Foundations

What the technology actually is, underneath the marketing. Five terms that make everything below make sense.

Machine learning

Software that works out its own rules from examples, rather than being given the rules by a programmer.

Show it ten thousand invoices and it learns what an invoice looks like. Nobody sits down and writes a description of one.

In practiceAlmost everything now called AI is machine learning. It explains both the strength and the weakness: these systems are very good at recognising patterns, and poor at following rigid rules, because they were never given any rules to follow.

Neural network

The structure most machine learning uses: a very large number of simple units, arranged in layers, each passing numbers to the next.

The name comes from a loose analogy with brain cells. The resemblance is thin — this is arithmetic, not biology, and no part of it thinks.

In practiceWeights, parameters and training all describe parts of a neural network. It is the thing being built.

Transformer

The particular design of neural network behind every modern language model. Published in 2017, and the reason the field moved as quickly as it did afterwards.

Its central idea is attention: when the model handles one word, it works out how much every other word in the passage bears on it. Earlier designs read strictly left to right and lost the thread over long passages.

In practiceIt is the T in GPT. It is also why the context window matters — attention has to weigh everything held in mind at once, which is what makes holding more of it expensive.

GPT

Generative Pre-trained Transformer. Three plain claims: generative, it produces text rather than choosing from options; pre-trained, the expensive learning was done in advance; transformer, the design above.

In practiceA description of how a model is built, not a brand — though one company's use of it made it sound like one. Most modern language models are GPTs in this sense, whoever makes them.

Model architecture

How a model is wired: how many layers, how wide they are, how they connect. The blueprint, as distinct from the weights that fill it.

In practiceUsually published even when the weights are not. Two models can share an architecture and behave completely differently, because the design is not the valuable part — the training is.

The basics

The handful of words that everything else is built on.

Large language model · LLM

The AI itself — the part that reads and writes. ChatGPT, Claude, Llama and Gemma are all large language models.

A model is a very large file of numbers, produced by reading an enormous amount of text. It has no memory of you and no connection to your files unless it is given them.

In practiceThe model is the interchangeable part. What makes a system useful is everything built around it — what it is allowed to see, how it finds the right passage, and whether it shows its source.

Retrieval-augmented generation · RAG

Finding the relevant pages in your own documents first, then asking the model to answer using only those pages.

Instead of asking someone to answer from memory, you hand them the right three pages and say: answer from these, and tell me which page you used.

In practiceIt is what makes an answer traceable, and why a document you change today is reflected in answers today — nothing has to be rebuilt or retrained.

Cloud AI

An AI service running on someone else's computers, reached over the internet. Your question, and any document you attach, leaves your building to be answered.

In practiceFor most work this is fine and often better. For material you are professionally obliged to protect, it is usually the point where the conversation stops.

On-premises · on-prem

The hardware physically lives in your building, on your network, rather than in a data centre belonging to someone else.

In practiceThe distinction that matters is not where the machine sits but where your documents go. On-premises means they do not go anywhere.

Open-weight models · open source

Models whose files are published for anyone to download and run on their own hardware. Llama, Gemma, Qwen and Nemotron are examples.

"Open-weight" and "open source" are often used interchangeably, but they are not the same. Open-weight means the finished numbers are published. Genuinely open source would also mean publishing the training data and the code that produced them, which is rarer. The distinction matters less for using a model than for scrutinising how it was built.

In practiceThe AI itself costs nothing and does not expire. There is no per-user licence and no subscription that can be withdrawn. Individual models carry their own licence terms, which need checking before commercial use.

Inference · inference server, inference engine

Using a finished model to answer a question. The opposite of training, which is the process of building the model in the first place.

Inference is asking the expert a question. Training is putting them through university.

You will meet the word constantly, because it is the only thing most AI systems actually do. An inference server or inference engine is simply the software that runs the model and takes questions.

In practiceA private system only ever does inference. That is precisely why one machine in a cupboard is enough, rather than a room full of them — training a model from scratch is a different undertaking entirely, and nobody buying a document assistant needs to do it.

Fine-tuning

Taking a finished model and nudging it to be better at one narrow thing, using additional examples. Much cheaper than training from scratch, much more involved than retrieval.

In practiceThe honest answer to "can it learn our house style?" is yes — but it is a later refinement, not something needed on day one. Retrieval solves the accuracy problem first.

Prompt

The instruction given to the model — the question, plus whatever context is supplied alongside it.

In practiceIn a retrieval system most of the prompt is assembled for you: your question, plus the passages the system found. What you type is only part of what the model actually receives.

System prompt

A standing instruction given to the model before any conversation starts — its role, its tone, what it must do and must not do. Users never see it.

In practiceA great deal of a system's behaviour is set here. Worth understanding as firm guidance rather than a lock: an instruction can be argued with, whereas a system with no route to your email simply cannot reach it.

Token

The unit a model reads and writes in. Not a letter and not quite a word — a chunk of text somewhere between the two.

Common words are usually a single token each. "The cat sat on the mat" is six words and six tokens. Longer or less common words get broken into pieces: "unbelievable" becomes something like un · believ · able, three tokens for one word. Unusual names, long numbers and technical terms split the most.

Average that across ordinary English and you land at roughly four tokens for every three words. That is where "three-quarters of a word" comes from — it is an average across a lot of text, not a rule about any particular word.

In practiceA useful rule of thumb: 1,000 tokens is about 750 words, or a page and a half. You will see speed quoted as "tokens per second" — that is simply how fast the answer appears on screen.

Training data

The material a model was built from — very large quantities of text, gathered before the model was released.

In practiceYour documents are not training data. A retrieval system reads them at the moment of the question and does not absorb them into the model.

Model weights

The model itself: one very large file of numbers. Running a model means loading that file into memory.

The name is literal. It is the same "weight" as in a weighted average — when you weigh up a decision, you decide how much each factor counts. Inside a model are simple units, each receiving several inputs, and each input arrives with a number attached saying how much it counts. That number is its weight. The term comes from the earliest neural networks of the 1940s and 50s, where the weights were physical dials controlling how strongly a signal passed through.

Training is nothing more than adjusting those numbers. You start with random values, so the model produces nonsense; you show it an example, measure how wrong it was, and nudge every weight slightly in the direction that would have been less wrong. Then repeat, an astronomical number of times. Nobody writes the weights, and nobody can read an individual one and say what it does.

A model has two parts: the architecture — how the units are wired, short enough to write on a page — and the weights. The architecture is the blueprint. The weights are the building.

In practiceThis is what "open-weight" means: the numbers are published for anyone to download. The architecture was usually public anyway — the weights are what cost a fortune in computing to produce, so publishing them is the meaningful act. Once the file is on your machine it works without an internet connection and cannot be withdrawn or altered underneath you.

Knowledge cutoff

The date after which a model knows nothing, because its training finished. Ask about last month's events and it will have no idea.

In practiceIt matters less than people expect for document work. The model is not being asked what it knows — it is being asked to read your files and answer from them.

Law, risk and compliance

The vocabulary that decides whether a tool is usable at all in regulated work.

Legal professional privilege

The protection that keeps communications between a lawyer and their client confidential and outside the reach of disclosure.

In practicePrivilege is the reason the location of processing is not a technicality. Where privileged material is sent, and who could be compelled to produce it, are questions a firm has to be able to answer. A system that processes nothing outside the building keeps the answer short.

Data controller · data processor

Under data protection law, the controller decides why and how personal data is used. A processor acts on the controller's instructions. The two carry different obligations.

In practiceUsually the first question a data protection officer asks about any new tool. When the system runs on your own hardware and no data leaves it, there is no third-party processor in the chain to account for.

UK GDPR

The United Kingdom's data protection regime, retained and amended from the EU General Data Protection Regulation, sitting alongside the Data Protection Act 2018.

In practiceIts principles — lawful basis, purpose limitation, data minimisation, security — apply to AI exactly as they do to any other system that touches personal data.

Data Protection Impact Assessment · DPIA

An assessment organisations carry out before deploying technology likely to present a high risk to people's rights — identifying what is processed, why, what could go wrong, and what reduces that risk.

In practiceCommonly expected before an AI system handling personal data goes live. It is a normal part of a deployment, not an obstacle, and it is far simpler to complete when the data never leaves the premises.

Right to erasure · subject access request

Two rights individuals hold over their personal data: to obtain a copy of what an organisation holds, and in defined circumstances to have it deleted.

In practiceAn important and under-discussed difference between approaches. Where a system retrieves from your documents, removing a document removes it from future answers immediately. Where information has been absorbed into a model by training, it cannot simply be taken back out.

Chain of custody

The documented history of a piece of evidence — who held it, when, and what was done to it — sufficient to show it has not been altered.

In practiceCentral to investigations and anything that may reach a court. It is a strong argument for processing that happens in one place, on equipment under your control, with a record of every question asked.

Disclosure

The stage of legal proceedings in which parties exchange the documents relevant to a case.

In practiceOften thousands of pages that must be read under time pressure. Finding what matters, and being able to show which page it came from, is exactly the shape of problem retrieval systems are built for.

EU AI Act

European Union legislation regulating AI by risk category, with heavier obligations on higher-risk uses. It applies to organisations operating in the EU; the UK has taken a different, sector-led approach.

In practiceWorth knowing about if you operate across borders. The direction of travel everywhere is the same: know what your systems do, be able to explain their output, and keep records.

These entries explain terms you may encounter. They are descriptions, not legal advice — your own advisers and data protection officer should determine what applies to your organisation.

Your documents

What the system is actually pointed at, and the state it tends to arrive in.

Corpus

The body of documents a system searches. Your matter files, case files, archives, or whichever subset you choose to include.

In practiceDeciding what goes in the corpus is a real decision, not an afterthought. More is not automatically better — a focused corpus produces sharper answers.

OCR · optical character recognition

Reading text off a scanned image so it becomes searchable. A scanned page is a photograph until something converts it.

In practiceThe single biggest variable in how long a setup takes. Clean digital files are quick. Decades of scanned paper, and especially handwriting, are slow and never perfect. Worth being honest about the state of your archive early.

Document management system · DMS

The system a firm already keeps its documents in — iManage, NetDocuments, SharePoint, or a structured set of network folders.

In practiceDocuments stay where they are. A retrieval system reads from the existing store rather than becoming a second place where everything lives.

Metadata

Information about a document rather than in it — author, date, matter number, document type, who last edited it.

In practiceOften what makes a search precise. "Anything from the 2019 file, authored by the other side" is a metadata question before it is a content question.

Redaction

Permanently removing or obscuring specific material in a document before it is shared — names, addresses, privileged passages.

In practiceA task AI can accelerate and should not be left to do alone. The sensible pattern is machine-proposed, human-approved.

Transcription · speech recognition

Turning recorded speech into text — interviews, recorded calls, meetings — so it can be searched and quoted like any other document.

In practiceOpen models do this very well now, and it runs on the same machine. Usually added once document work is established rather than on day one.

Multimodal

A system that handles more than text — images, audio, and video alongside documents.

In practiceReal case material is rarely only text. A file that includes photographs, voice notes and recordings is normal, and increasingly all of it can be searched together.

How it answers

What actually happens between your question and the reply.

Indexing

The one-off process of reading your documents and organising them so they can be searched by meaning. Done once at the start, then topped up as new documents arrive.

In practiceThis is the bulk of the setup work. How long it takes depends on how many documents there are and what condition they are in — clean digital files are fast, scanned paper is slow.

Chunking

Splitting documents into passages small enough to be retrieved on their own. A five-hundred-page bundle is stored as thousands of pieces, each tagged with where it came from.

In practiceThis is why a citation can point at a page rather than waving at a whole document. It is also a genuine design decision: chunks too small lose the surrounding sense, chunks too large drag in noise.

Embedding · vector

Turning a passage of text into a list of numbers that captures its meaning, so the system can find passages that mean something similar rather than passages that happen to use the same words.

In practiceIt is why a question about "money transfers" finds a page that says "funds were moved". Keyword search would miss it.

Semantic search

Searching by meaning rather than by matching words. The opposite of keyword search, which finds only the exact terms you typed.

In practiceIt is why you no longer have to guess the wording someone used. Ask what you mean, not what you think they wrote.

Citation

The reference attached to an answer, pointing at the exact source — document and page — that the statement came from.

In practiceThis is the difference between an assistant you can rely on and one you cannot. If an answer cannot show you its source, you have no way to check it.

Grounding

Restricting the model to answering from supplied documents rather than from whatever it absorbed during training.

In practiceA grounded system will say it cannot find something. That is the correct behaviour, and worth more than a confident guess.

Hallucination

When a model states something untrue with complete confidence. It is not lying — it is producing text that fits the pattern of a plausible answer.

In practiceGrounding and citations are the practical defence. When every claim points at a page you can open, a fabrication has nowhere to hide.

Guardrails

Rules placed around a model to constrain what it will do — topics it declines, actions it cannot take, information it must not repeat.

In practiceUseful, and not a substitute for system design. A system that has no route to the internet cannot leak to it, whatever its rules say. Build the boundary first, then add the rules.

Context window

How much text the model can hold in mind at once, measured in tokens.

How many pages you can keep open on the desk before you have to close one.

In practiceA larger context lets the system weigh more material in a single answer, and it needs more memory to do it. It is one of the things that separates a small machine from a large one.

Agentic

An AI that works in several steps on its own — look something up, decide what to do next, check another source, then answer — rather than replying in one pass.

In practiceBetter answers on complex questions, and noticeably slower. It suits research rather than lookups, so it is usually worth choosing per question instead of switching on everywhere. You will also see the word "agent" used for the same idea.

Reasoning model

A model that works a problem through in steps before answering, instead of replying immediately. The working is generated internally and usually kept out of sight.

In practiceNoticeably better on questions needing several linked deductions, and slower and more costly on everything else. The sensible approach is to match the model to the question rather than run the heaviest one for every lookup.

Benchmarks

Standard tests used to compare models against one another, usually reported as a score out of a hundred.

In practiceTreat them as a starting point, not a verdict. Benchmarks measure general ability on public questions. What matters is how a system performs on your documents, which is why a trial on real material beats any league table.

Inside the machine

The hardware vocabulary — most useful if you have an IT team who will ask.

GPU · graphics card

A graphics card. Built originally to draw video games, but the same maths — thousands of small sums at once — turned out to be exactly what AI needs.

An ordinary processor is one very capable person working through problems in order. A graphics card is thousands of simple calculators working at the same time. AI is thousands of small sums, so the calculators win.

In practiceThe graphics card is the machine. Everything else in the box exists to keep it supplied.

VRAM · graphics memory

The graphics card's own memory, separate from the computer's ordinary memory and far faster.

Think of it as the desk the system works at. The whole model has to fit on the desk at once. If it does not fit, it does not run slowly — it does not run.

In practiceThis single number decides which models a machine can use. It is the first question worth asking about any private AI system, and the honest reason larger machines cost more.

Memory bandwidth

How quickly the graphics card can move data in and out of its own memory, measured in gigabytes per second.

If memory capacity is the size of the desk, bandwidth is how fast your hands move across it. A large slow desk is worse than a smaller fast one.

In practiceCapacity decides what the machine can hold. Bandwidth decides how quickly the answer appears. Systems advertising very large memory at low speed will run big models and keep you waiting.

Parameters · 8B, 70B

The number of adjustable values inside a model. "70B" means seventy billion of them. More generally means more capable, and always means a larger file.

In conversation, parameters and weights mean the same thing. Strictly, parameters include a few other values as well, but the two words are used interchangeably and both point at the same idea: the numbers that make up the model.

In practiceEvery one of those numbers has to sit in memory at once, which is where hardware requirements come from. Compressed to four bits, each takes half a byte — so a 70B model needs roughly 35GB before any working space is added. That arithmetic, not a vendor rule, is why some models need a larger machine than others. Establish what the work requires first; the hardware follows from it.

Quantisation · 4-bit

Storing a model's numbers less precisely so the whole thing takes less space.

Saving a photograph at a smaller file size. A little quality is lost, a lot of space is saved, and in normal use you cannot tell.

In practiceIt is how a large model fits on a machine that could not otherwise hold it. Newer hardware does this with less loss than older hardware.

ECC memory

Memory that checks itself for errors. All memory occasionally suffers a flipped bit — from heat, electrical interference, even background radiation. ECC memory detects it and corrects it. Ordinary memory does not notice.

In practiceIt is one of the real differences between professional and consumer hardware. For work that may be relied on formally, memory that silently corrupts a figure is not an acceptable risk.

Tensor cores

Parts of the graphics chip built for one job: multiplying grids of numbers together. That happens to be nearly everything an AI model does.

In practiceIt is a genuine reason newer cards outperform older ones at AI work, even at the same memory size.

CUDA

The software layer that lets programs use NVIDIA graphics cards, and the name for the thousands of small processing units inside them.

In practiceEffectively all AI software is written for CUDA. It is the practical reason the field runs on NVIDIA hardware.

Working memory · overhead

The model file is not the only thing occupying memory. Every question in progress needs scratch space, and the system itself takes a share.

In practiceIt is why sizing a machine is not simply a matter of matching the model's file size, and why the number of people asking questions at the same time matters as much as the number of staff.

TFLOPS · TOPS

Measures of raw calculating speed — trillions of operations per second.

In practiceTreat these with caution. For document work, memory capacity and bandwidth predict real performance far better than any headline speed figure.

In your building

The practical questions a facilities or IT manager will raise.

Headless

A computer with no monitor, keyboard or mouse. It is administered over the network and used through a web browser on people's ordinary machines.

In practiceNobody sits at it. It lives in a comms cupboard or server room, and staff reach it from their own desks.

Air-gapped

A machine with no connection to the internet at all.

In practicePossible, and occasionally required. It changes how updates are delivered, so it is worth raising early rather than late.

Data residency

Where your data physically sits, and which country's law therefore applies to it.

In practiceWith an on-premises system the answer is your own address, which removes a set of questions rather than answering them.

Power draw · TDP

How much electricity the machine uses, measured in watts — and therefore how much heat it puts into the room.

In practiceWorth asking about. A machine drawing well over a kilowatt needs cooling, a suitable power supply and possibly an electrician. One that draws a few hundred watts plugs into an ordinary socket.

Uninterruptible power supply · UPS

A battery that keeps the machine running through a power cut for long enough to shut down cleanly.

In practiceStandard with any machine that matters. Its size is set by the machine's power draw, which is another reason efficient hardware is worth choosing.

Permissions · access control

Rules determining which staff can see which documents, and therefore which documents can inform their answers.

In practiceIf your document system already has information barriers, the AI must respect them. An assistant that answers from files the asker is not entitled to see has created a problem, not solved one.

Audit log

A record of who asked what, and when.

In practiceOften the first thing a compliance officer asks for, and straightforward when the system is entirely within your control.

Backup · redundancy

Backup is a copy kept elsewhere in case something is lost. Redundancy is duplication inside the machine — typically mirrored drives — so a single failure does not stop it working.

In practiceThe searchable index can always be rebuilt from your original documents, so the thing genuinely worth protecting is the documents themselves, which you already back up.

Remote management

Administering, updating and diagnosing the machine over a network connection rather than standing in front of it.

In practiceHow support actually works without a site visit for every question. The scope of that access is worth agreeing explicitly and in writing before installation.

Rackmount · tower

Two physical formats. A rackmount machine is built to bolt into a standard server rack; a tower stands on the floor like a desktop computer.

In practiceDecided by what you already have. A firm with a server room usually wants rack; a firm with a cupboard usually wants a tower. It changes the housing, not the capability.

ISO 27001 · Cyber Essentials

Security certifications. ISO 27001 is an international standard for managing information security; Cyber Essentials is a UK government-backed scheme covering baseline controls.

In practiceFrequently required by clients and insurers. Keeping a system on your own premises tends to simplify the questions rather than add to them, because fewer third parties are involved.

Choosing a system

Terms that come up when comparing options, whoever you buy from.

Vendor lock-in

The position of being unable to leave a supplier without losing something you depend on — your data, your workflow, or the ability to operate at all.

In practiceWorth testing with one question of any supplier: if we stopped paying you tomorrow, what happens? Where the models are open and the hardware is yours, the honest answer is that it keeps running.

Per-seat licensing

Charging for each named user, every month, for as long as they have access.

In practiceThe standard model for cloud AI, and the reason costs rise with headcount rather than with use. A system you own has a different shape: the capacity is fixed and the number of people using it is your decision.

Proof of concept · pilot

A limited trial on real material, run before committing, to establish whether the thing works on your documents rather than in a demonstration.

In practiceThe most reliable way to find out. A demonstration shows what a system can do; a pilot shows what it does with your files, your vocabulary and your edge cases.

Service level agreement · SLA

The written commitment on support — how quickly a supplier responds, during which hours, and what happens when something fails.

In practiceWorth reading closely. Response time and resolution time are different promises, and hardware cover is a separate question from software support.

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Still not sure what you need?

That is the normal starting position, and it is what a discovery visit is for. We come to you, look at the documents and the work they support, and tell you honestly whether private AI is worth it for your organisation — including when it is not.

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