Set
Leaders.
Written for the person who has to make the decisions not necessarily build the thing.
Less about how AI works, more about what it costs, what it risks, and what it means for your team with some prompts to consider
3 words
The words
Agentic.
Agentic is an adjective that describes a system (or type of work) that can pursue goals usually in a multi-step manner and with some level of autonomy usually using AI. Using generative AI through a chat function like ChatGPT is not in itself agentic work. An agentic system isn't conscious, independent or even always reliable. Currently, the focus is on using agentic systems within tightly controlled workflows where they can bring efficiency and quality, and where humans are involved even if only as a supervisor at key steps.
EU AI Act.
The European Union's comprehensive risk-based law governing the use of and supply of AI. You don't need to be based in the EU for the Act to affect you and it may apply if you sell or provide an AI system to consumers or customers in the EU (even from outside the EU). The Act bans specific practices, imposes requirements on high-risk systems and gives specific rules around transparency, AI literacy, and general purpose AI models. The Act has already been amended and has been going live in phases, but most of it has been live since August 2026. High-risk uses have rules following in December 2027 and August 2028. In short, it's complex and comprehensive and broad in who needs to take note.
Hallucination.
When an LLM creates an inaccurate, false, or fabricated output. LLMs are prediction machines, trained on a huge body of past data (their corpus). Hallucinations can happen because of gaps or errors in that training data, but more often they're just a side effect of the prediction process itself. It does this confidently (even when wrong), and even when challenged directly it can take several turns of pushing before a model will admit something was fabricated or inaccurate. The major labs claim to have brought hallucination rates down for simple tasks, but it remains a huge challenge for generative AI, which is stochastic by nature.