Knowledge/Glossary

Technology & AI Glossary.

40+ terms defined with rich explanations, practical FAQs, and links to free diagnostic tools.
Technical debt, AI economics, SaaS metrics, product management, and engineering leadership — explained.

AI & Machine Learning

Artificial Intelligence (AI)

Artificial intelligence is the simulation of human intelligence by computer systems. AI encompasses machine learning, natural language processing, computer visi...

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Large Language Model (LLM)

A Large Language Model is a type of artificial intelligence trained on vast amounts of text data to understand and generate human language. LLMs like GPT-4, Cla...

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AI Hallucination

An AI hallucination occurs when an artificial intelligence system generates output that is confident, fluent, and completely wrong. LLMs hallucinate because the...

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Agentic AI

Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, and take actions to achieve goals with minimal human oversight. Unlike ...

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Prompt Engineering

Prompt engineering is the practice of crafting inputs (prompts) to AI language models to elicit desired outputs. It encompasses techniques like few-shot learnin...

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Retrieval-Augmented Generation (RAG)

Retrieval-Augmented Generation (RAG) is an AI architecture pattern that combines a language model with a knowledge retrieval system. Instead of relying solely o...

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AI Governance

AI governance is the framework of policies, processes, and controls that guide how an organization develops, deploys, and monitors artificial intelligence syste...

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Vibe Coding

Vibe coding is a term that emerged in 2025-2026 to describe the practice of using AI to generate code through natural language prompts rather than writing code ...

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SaaS Metrics & Finance

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is the annualized value of recurring subscription revenue. It's the single most important metric for SaaS businesses and is calcu...

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Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable, recurring revenue a SaaS business earns each month from its subscription customers. MRR is the building bloc...

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Churn Rate

Churn rate is the percentage of customers or revenue lost over a given period. Customer churn (logo churn) measures the percentage of customers who cancel. Reve...

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Net Revenue Retention (NRR)

Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), measures the percentage of recurring revenue retained from existing customers over a period...

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Rule of 40

The Rule of 40 is a SaaS benchmark that states a healthy software company's combined revenue growth rate and profit margin should equal or exceed 40%. For examp...

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SaaS Valuation

SaaS valuation is the process of determining the economic value of a software-as-a-service business. SaaS companies are typically valued as a multiple of their ...

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Unit Economics

Unit economics measures the direct revenues and costs associated with a particular business unit — typically a customer, transaction, or product unit. In SaaS, ...

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Burn Rate & Runway

Burn rate is the rate at which a company is spending its cash reserves. Monthly burn rate = total monthly expenses minus total monthly revenue. Runway is how ma...

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