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AI Consumer Compliance

AI glossary

Clear, consumer-friendly definitions of AI and compliance terms.

A

Adverse Action Notice
A notice some laws require when a business takes a negative action against you, such as denying credit — including when AI is involved.
Algorithmic Bias
When an AI system produces systematically unfair outcomes for certain groups.
Artificial Intelligence (AI)
Software that performs tasks typically needing human intelligence, like recognizing images, understanding language, or making predictions.
Automated Decision-Making (ADM)
When a computer system makes or significantly influences a decision about you.

C

Conformity Assessment
A formal process to verify that an AI system meets legal requirements before it is placed on the market.
Consent
Your freely-given, specific, informed agreement — often required before an organization can use AI with your personal data.

D

Data Minimization
A privacy principle that says organizations should only collect and use the minimum personal data needed.
Deepfake
A very realistic AI-generated image, audio, or video that appears to show a real person doing or saying something they did not.

E

Explainability
The ability to understand why an AI system produced a particular output.

F

Foundation Model
A large, general-purpose AI model trained on broad data that can be adapted to many tasks.

G

Generative AI
AI that creates new content — text, images, audio, or video — rather than only analyzing existing data.

H

High-Risk AI
AI used in a context where mistakes can cause significant harm — such as healthcare, credit, hiring, or public safety. Regulators require extra safeguards for these systems.
Human Oversight
Requirements that a human can supervise, intervene, or override an AI system's decision.

L

Large Language Model (LLM)
An AI model trained on huge amounts of text to generate and understand language.

M

Machine Learning
A type of AI that learns patterns from examples instead of being explicitly programmed.
Model Card
A short document describing an AI model's purpose, training data, performance, and limitations.

R

Red-Teaming
Deliberately probing an AI system to find safety, security, or bias weaknesses before it is deployed.

S

Synthetic Media
Images, audio, video, or text created or substantially altered by AI.

T

Training Data
The data used to teach an AI system patterns and behaviors. The quality and composition of training data strongly shape the system's behavior.

W

Watermark
A mark embedded in AI-generated content to help identify it as synthetic.