The New AI Vocabulary: Key Terms You Need to Know

Technology

The New AI Vocabulary: Key Terms You Need to Know

Deandra Henahan Aug 5, 2025 9:15:00 AM

As artificial intelligence (AI) reshapes the way we operate, understanding the new language surrounding it is essential. Whether you're navigating digital transformation at your organization or simply staying informed, mastering this evolving AI glossary will help you stay ahead.

Here are some of the key terms defining the AI-powered future of work.

Agent

An agent is an AI-powered system designed to reason, plan, and act autonomously. Unlike traditional automation tools, agents can complete tasks or even entire workflows without constant human intervention, though they typically include human oversight at key decision points. These are the digital teammates transforming how work gets done.

Agent Boss

The agent boss is a newly emerging role: a human manager responsible for overseeing one or more AI agents. Think of it as a shift from managing people to managing a blend of people and AI systems. Agent bosses ensure that agents operate effectively, ethically, and in alignment with business goals.

Capacity Gap

This term refers to the difference between what a business demands and what its human workforce can deliver. AI steps in to close this gap, enabling organizations to meet growing expectations without overextending their teams.

Digital Labor

Digital labor refers to the on-demand, AI-driven capabilities that augment or replace certain human tasks. It allows businesses to scale quickly and cost-effectively, by calling on intelligent agents whenever needed, whether that means processing customer service tickets, drafting content, or analyzing data.

Frontier Firm

A Frontier Firm represents the cutting edge of organizational design. These companies harness the full power of “intelligence on tap,” seamlessly integrating human-agent teams and redefining roles like the agent boss. They set the standard for what’s possible when digital labor becomes an everyday asset.

Human-Agent Ratio

This emerging metric tracks the balance between humans and AI agents on a team. Optimizing this ratio means ensuring agents are doing what they do best—high-volume, repetitive, or analytical work—while humans focus on judgment, creativity, and oversight. It’s about finding the sweet spot where AI enhances human work without replacing it.

Intelligence Resources

Borrowing from both IT and HR, intelligence resources is a new organizational function that manages digital labor at scale. It involves setting up systems, policies, and infrastructure to ensure that agents are effectively integrated into teams and workflows

Work Chart

Forget the old-school org chart. The Work Chart represents a more dynamic way to structure a business, based not on job titles or departments, but on the actual work that needs to be done and who (or what) is best equipped to do it. This shift enables organizations to deploy resources—both human and digital—more flexibly.

Why These Terms Matter

These terms aren't just buzzwords—they represent a profound shift in how organizations function. As businesses adopt more intelligent systems, the boundaries between human and machine work blur. Understanding these concepts is the first step to thriving in a future that’s already here.

Ready to embrace the future of work?

Start by learning the language. Then, explore how agents, digital labor, and intelligence resources can unlock new levels of productivity and innovation in your organization.