Glossary

AI, explained simply.

No jargon, no hype. Plain-English guides on AI agents, automation, grants, and the technology behind them, written for business owners, not engineers.

The WhatsApp terms here are also collected, alongside the guides that use them, on the WhatsApp Business API hub.

AI Fundamentals

AI Agent

An AI agent is software that can perceive its environment, make decisions, and take actions autonomously, without waiting for step-by-step human instructions.

AI Agent vs Chatbot

A chatbot follows scripts. An AI agent understands context, connects to your systems, and takes real actions. The gap is like the difference between an FAQ page and a competent employee.

An AI chatbot is a conversational interface powered by language models that can understand natural language and generate human-like responses, a step up from scripted bots, but not the same as a full AI agent.

NLP (Natural Language Processing)

Natural Language Processing (NLP) is the AI technology that lets machines understand, interpret, and respond to human language, the foundation behind chatbots, AI agents, voice assistants, and search engines.

Agentic AI

Agentic AI refers to AI systems that can plan, reason, and act independently to achieve goals, not just respond to prompts. It's the shift from AI as a tool you use to AI as a worker that operates.

Large Language Model (LLM)

A large language model (LLM) is an AI system trained on an enormous amount of written text so it can read a request in plain language and produce a useful written response.

Context Window

A context window is the maximum amount of text an AI model can hold in view at one time, covering the instructions, the conversation so far, and any documents it has been given.

Prompt Engineering

Prompt engineering is the practice of writing and refining the instructions given to an AI model so it produces accurate, consistent and useful output every time.

Tool Call

A tool call is the moment an AI model stops writing text and instead runs a real action in another system, such as looking up a customer record or sending a WhatsApp message.

Function Calling

Function calling is the capability that lets an AI model request one of your existing software actions, with the right inputs filled in, so it can fetch real data or get something done.

AI Orchestration

AI orchestration is the coordination layer that decides which model, which tool, and which person handles each step of a task, in what order, and what happens when a step fails.

Multi-Agent System

A multi-agent system is a setup where several specialised AI agents each handle part of a job and pass work between them, instead of one agent trying to do everything.

Human in the Loop

Human in the loop is a design where an AI agent pauses at defined points and waits for a person to review, approve or correct its work before it continues.

AI Guardrail

An AI guardrail is a rule or check that limits what an AI system is allowed to say or do, so it stays inside the boundaries your business has set.

AI Hallucination

An AI hallucination is an answer that sounds confident and reads well but is factually wrong or entirely invented by the model.

Retrieval-Augmented Generation (RAG)

Retrieval-augmented generation (RAG) is a technique where an AI system first searches your own documents for the passages relevant to a question, then writes its answer using what it found.

Embedding

An embedding is a numerical representation of a piece of text that lets software compare meaning, so a search can match a customer complaint with the right policy even when the words differ.

Vector Database

A vector database is a storage system built to hold embeddings and quickly find the passages closest in meaning to a question, rather than matching exact keywords.

Model Context Protocol (MCP)

The Model Context Protocol (MCP) is an open standard for connecting AI models to external tools and data through one common interface, instead of a custom connector for every pairing.

WhatsApp Business API

The WhatsApp Business API lets businesses send and receive WhatsApp messages programmatically, enabling automation, AI agents, CRM integrations, and multi-agent support at scale.

WhatsApp Business Account (WABA)

A WhatsApp Business Account (WABA) is the account inside Meta Business Manager that holds a company's WhatsApp phone numbers, approved message templates, quality ratings and messaging limits.

WhatsApp Business Solution Provider (BSP)

A WhatsApp Business Solution Provider (BSP) is a company approved by Meta to set businesses up on the WhatsApp Business API and to handle their onboarding, message delivery and billing.

WhatsApp Official Business Account

A WhatsApp Official Business Account is a business account that Meta has granted a green verified badge, which appears next to the business name in the chat header and in search results.

WhatsApp Display Name Approval

WhatsApp display name approval is Meta's review of the business name shown to customers on a WhatsApp Business API number, which must be approved before that number can message anyone.

WhatsApp Session Window

The WhatsApp session window is the 24-hour period that starts when a customer messages your business, during which the business can reply with free-form content instead of a pre-approved template.

WhatsApp Template Message

A WhatsApp template message is a message format submitted to Meta and approved in advance, which a business must use to start a conversation with a customer outside the 24-hour session window.

WhatsApp Template Categories

WhatsApp template categories are the labels Meta assigns to every approved template, marketing, utility or authentication, which control how the template may be used and what each send costs.

WhatsApp Opt-In

WhatsApp opt-in is the permission a customer gives a business to message them on WhatsApp, which Meta requires before any business-initiated template message may be sent.

WhatsApp Quality Rating

WhatsApp quality rating is a score of high, medium or low that Meta assigns to each business phone number based on how customers have reacted to its messages over a rolling seven-day period.

WhatsApp Messaging Limits

WhatsApp messaging limits are the caps Meta places on how many unique customers a business phone number can start a conversation with in any rolling 24-hour period.

WhatsApp Conversation-Based Pricing

WhatsApp conversation-based pricing was Meta's original billing model for the WhatsApp Business API: one charge covered every message exchanged in a 24-hour conversation window, whatever the number of messages. Meta replaced it with per-message pricing on 1 July 2025, so the term now describes how the platform used to be billed rather than how it is billed today.

WhatsApp Broadcast Messaging

WhatsApp broadcast messaging is sending the same approved template message to many opted-in customers at once through the WhatsApp Business API, with each person receiving it as a private one-to-one chat.

Click-to-WhatsApp Ads

Click-to-WhatsApp ads are Facebook and Instagram ads with a button that opens a WhatsApp chat with the advertiser instead of sending the viewer to a website.

WhatsApp Webhook

A WhatsApp webhook is an HTTPS address on your own system that Meta calls in real time to deliver incoming customer messages and message status updates.

Automation & Workflows

AI Workflow Automation

AI workflow automation uses artificial intelligence to handle multi-step business processes, not just single tasks. It connects systems, makes decisions, and moves work forward without human intervention.

Process Automation

Process automation uses technology to handle repetitive business tasks (data entry, approvals, notifications, document processing) without manual intervention. AI takes it further by handling tasks that require judgment.

Workflow

A workflow is a defined sequence of steps that moves a piece of work from start to finish, such as turning an incoming enquiry into a quotation and then a confirmed order.

Automation Trigger

An automation trigger is the specific event that tells an automated workflow to start running, such as a new WhatsApp message arriving or an invoice being uploaded.

Robotic Process Automation (RPA)

Robotic Process Automation (RPA) is software that mimics the clicks and keystrokes a person makes inside an existing application, so routine screen work runs without anyone at the keyboard.

Straight-Through Processing

Straight-through processing is when a transaction runs from start to finish without a person touching it at any step, from the moment a request arrives to the moment the record is created and confirmed.

Exception Handling

Exception handling is the part of an automated process that decides what happens when something does not fit the normal path, such as an invoice with a missing field or a request the system cannot match to a customer.

Audit Trail

An audit trail is a time-stamped record of every action taken in a system, showing what happened, who or what did it, and when.

No-Code vs Low-Code

No-code and low-code are two ways of building software with less hand-written code: no-code tools assemble everything visually, while low-code tools use a visual builder but still let a developer drop into code where needed.

Data & Integration

Data Integration

Data integration connects your separate business systems so information flows between them automatically: no more copy-pasting between spreadsheets, CRMs, and messaging platforms.

API

An API is a defined doorway that lets one piece of software ask another for information or ask it to perform an action, without a person copying data between the two.

API Integration

An API integration is a working connection built between two software systems on top of their APIs, so data moves between them automatically instead of being retyped.

Webhook

A webhook is an automatic message one system sends to another the moment something happens, so the receiving system can react immediately instead of waiting to be asked.

iPaaS

iPaaS (Integration Platform as a Service) is a hosted service that connects your business applications to each other, so you rent the plumbing between systems instead of building and maintaining every connection yourself.

ETL

ETL (Extract, Transform, Load) is the process of pulling data out of one system, reshaping it into a consistent format, and loading it into another, usually a database used for reporting.

Documents & OCR

OCR (Optical Character Recognition)

OCR (Optical Character Recognition) converts images of text (scanned documents, photos of invoices, handwritten forms) into machine-readable data that your systems can process.

Intelligent Document Processing

Intelligent Document Processing (IDP) uses AI to read, understand, and extract data from documents (invoices, forms, delivery orders, contracts) and feed it into your business systems automatically.

Document Data Extraction

Document data extraction is the step that pulls specific named fields out of a document, such as the invoice number, the total and the due date, and returns them as structured data your systems can store.

Business & ROI

ROI of AI Automation

Most businesses see ROI within 2-4 months of deploying a custom AI agent. The biggest gains come from time savings, not headcount cuts. Your team handles more work without growing.

AI for Small Business

Small businesses in Singapore can deploy custom AI agents from S$4,600 (before grants) or S$2,300 after up to 50% PSG support, see ROI within 3 months, and automate 60-100 hours of work per month. It's no longer enterprise-only technology.

AI vs Hiring Staff

Hire when the role requires creativity, empathy, or judgment. Automate when the role is repetitive, predictable, and high-volume. Most businesses need both, but the ratio is shifting.

Build vs Buy Software

Buy when an off-the-shelf tool fits 80%+ of your needs. Build when your workflow is the competitive advantage, existing tools don't integrate well, or you're spending more time working around a tool than with it.

Service Level Agreement (SLA)

A Service Level Agreement (SLA) is a written promise about the level of service a customer or supplier can expect, stated as measurable targets such as a first response within one business hour.

Applications

CRM (Customer Relationship Management)

A CRM (Customer Relationship Management) system is software that tracks every interaction with your customers and prospects (calls, emails, WhatsApp messages, orders, and support tickets) in one place.

AI in Customer Service

AI handles 60-80% of routine customer enquiries instantly. The remaining 20-40% go to humans with full context. The result: faster response times, happier customers, and support teams that focus on complex cases.

Lead Qualification

Lead qualification is the process of evaluating whether a prospect is worth your sales team's time, based on budget, need, timeline, and fit. AI can do this instantly from the first conversation.

Escalation Rule

An escalation rule is a written condition that decides when a conversation or task must be handed to a person, and to which person, instead of continuing automatically.

Singapore Grants

PSG Grant

The Productivity Solutions Grant (PSG) is a Singapore government grant that covers up to 50% of the cost of pre-approved digital solutions, including AI agents and automation tools.

EDG Grant

The Enterprise Development Grant (EDG) supports Singapore businesses in capability building, innovation, and market access, covering up to 50% of project costs, with higher support for qualifying SMEs.

WhatsApp Business API

27 guides · Messaging, Templates & Troubleshooting

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Updated 4 Sep 2026

AI, explained simply.

AI Agent

AI Agent vs Chatbot

AI Chatbot

NLP (Natural Language Processing)

Agentic AI

Large Language Model (LLM)

Context Window

Prompt Engineering

Tool Call

Function Calling

AI Orchestration

Multi-Agent System

Human in the Loop

AI Guardrail

AI Hallucination

Retrieval-Augmented Generation (RAG)

Embedding

Vector Database

Model Context Protocol (MCP)

WhatsApp Business API

WhatsApp Business Account (WABA)

WhatsApp Business Solution Provider (BSP)

WhatsApp Official Business Account

WhatsApp Display Name Approval

WhatsApp Session Window

WhatsApp Template Message

WhatsApp Template Categories

WhatsApp Opt-In

WhatsApp Quality Rating

WhatsApp Messaging Limits

WhatsApp Conversation-Based Pricing

WhatsApp Broadcast Messaging

Click-to-WhatsApp Ads

WhatsApp Webhook

AI Workflow Automation

Process Automation

Workflow

Automation Trigger

Robotic Process Automation (RPA)

Straight-Through Processing

Exception Handling

Audit Trail

No-Code vs Low-Code

Data Integration

API

API Integration

Webhook

iPaaS

ETL

OCR (Optical Character Recognition)

Intelligent Document Processing

Document Data Extraction

ROI of AI Automation

AI for Small Business

AI vs Hiring Staff

Build vs Buy Software

Service Level Agreement (SLA)

CRM (Customer Relationship Management)

AI in Customer Service

Lead Qualification

Escalation Rule

PSG Grant

EDG Grant

WhatsApp API Documentation

Pricing Calculator

Error Diagnostic

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