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AI Concepts Explained

Key AI concepts in plain language

AI Concepts Explained

Latest articles

Abstract illustration of AI applications connecting to business systems through one standard protocolAI Concepts Explained

What Is MCP? Why Everyone Is Talking About This Protocol

A protocol barely a year and a half old has been adopted by rival AI vendors and handed to a neutral foundation. What MCP actually solves, how it relates to function calling, and how to factor it into vendor selection.

ChengXuYuan Team
Illustration of an AI model issuing structured tool requests that business systems execute and returnAI Concepts Explained

Function Calling: How AI Went from Talking to Doing

The same request — "check this customer's order and draft a follow-up email" — used to earn an apology from AI. Now some assistants actually get it done. The mechanism in between is function calling: how it works, one example end to end, and where the safety boundaries belong.

ChengXuYuan Team
Abstract illustration of text, images and audio flowing into one AI model for unified understandingAI Concepts Explained

What Is Multimodal AI? Text, Images and Audio, Understood Together

Snap a photo of an invoice and the AI reads out the amount and issuer — that is multimodal capability, not classic OCR. What sets it apart from text models with bolt-on vision, what businesses can do with it, and which steps still need a human.

ChengXuYuan Team
Abstract illustration of documents becoming points that cluster by meaning on a semantic mapAI Concepts Explained

Embeddings and Vector Databases: How AI Finds the Right Material

The document is in the knowledge base, but the search comes back empty — because keywords compare characters, not meaning. How embeddings turn text into coordinates on a semantic map, how vector databases find the nearest neighbours, and when a business should care.

ChengXuYuan Team
Abstract illustration of several AI agents collaborating around a shared task with communication and coordination pathsAI Concepts Explained

Multi-Agent Collaboration: Capability Upgrade or Complexity Trap?

More agent roles do not automatically create a stronger system. Starting from a single-agent baseline, this guide weighs genuine decomposition value against communication, coordination, shared-state, evaluation and debugging costs, then defines when not to use multi-agent architecture.

ChengXuYuan Team
Abstract illustration of a fixed-size workbench where new items push older ones off the edgeAI Concepts Explained

Context Windows: Why AI Forgets Things Mid-Conversation

Perfectly in sync for the first half of the conversation, oddly off-target in the second — the AI didn't get lazy; its context window filled up. A workbench analogy that explains what the window is, why bigger ones still miss the middle, and three habits to adopt.

ChengXuYuan Team
Abstract illustration of text sliced into building blocks that are counted and billed one by oneAI Concepts Explained

What Are LLM Tokens, and Why Does AI Charge by Them?

AI bills are settled in tokens, not requests or words. Using a building-block analogy: what a token is, why input and output are both charged, why longer context costs more, and how to estimate a use case's monthly cost on the back of an envelope.

ChengXuYuan Team
Layered illustration of an AI agent's context, session state, long-term memory, knowledge base and audit logAI Concepts Explained

What Is AI Agent Memory? Context, Long-Term Memory and Enterprise Data

When an AI agent says it remembers, the information may still be in the current context or may have been written for later reuse. This guide separates five commonly confused data layers and explains their purpose, lifetime, permissions, privacy and forgetting rules.

ChengXuYuan Team
Abstract illustration contrasting a turn-by-turn chatbot with an AI agent autonomously executing a taskAI Concepts Explained

What Is an AI Agent, and How Is It Different from a Chatbot?

Give the same assignment to a chatbot and to an AI agent, and the experience could hardly differ more: one answers brilliantly while you drive every step; the other takes the goal, breaks it down, uses tools and checks its own work. A walkthrough with a weekly-report task, plus how to judge which jobs to hand over.

ChengXuYuan Team
Abstract illustration of documents flowing through retrieval into an AI answerAI Concepts Explained

What Is RAG? The Technology Behind Enterprise Knowledge Bases

Why does a general AI tool start making things up the moment you ask about your own company? RAG — retrieval-augmented generation — exists to fix exactly that: look up your material first, then answer. A plain-language explanation of how it works and when it matters.

ChengXuYuan Team

What you will find here

  • Methods validated in practice
  • Reusable steps and checklists
  • Ongoing updates for real business scenarios

Suggested reading path

01

Start with the problem

Begin with the scenario closest to your work.

02

Study the method

Focus on inputs, steps, acceptance criteria and boundaries.

03

Turn it into a template

Make the validated method reusable by your team.

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