Foundational Concepts

API (Application Programming Interface)

A connection that lets software talk to an AI model programmatically.

Definition

An API is a standardised way for one piece of software to send requests to and receive responses from another. When a business integrates an AI model into their CRM, their customer service platform, or their internal tools, they typically do so via an API. The application sends the prompt to the model's API and receives the response back — all without the user needing to interact with a chatbot interface directly. APIs are what make AI embeddable in existing workflows.

Why this matters for your business

Most AI providers offer APIs at per-token pricing, which makes it easy to estimate costs at scale before committing to an integration. API access also allows businesses to maintain control of their data rather than sending it through consumer-facing interfaces.

Related Terms

Inference

The process of a trained AI model actually running and producing outputs — as opposed to being trained.

Large Language Model (LLM)

A type of AI trained on vast amounts of text that can read, write, summarise, and reason with language.

Model Serving

The infrastructure that makes a trained model available to receive and respond to requests.

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Disclaimer

This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.

Document reference: ISO_webpage_knowledge-base_glossary_v1

Last modified: 29 March 2026

Knowledge Base·Foundational Concepts·API (Application Programming Interface)