For Founders, Product Teams, and Strategic Advisors

Compiled by Lubos β€” Edge AI Auditor & Open Compliance Advisor

Version 1.1 – June 2025

🟦 Tier 1: Core Concepts (For Immediate Use in Audits, Pitches & Kits)

🧩 A. Foundational AI & Edge Concepts

Term Definition
Edge AI AI models that run directly on devices (e.g., phones, wearables) rather than the cloud. Enables real-time decisions and improves privacy.
Inference The moment an AI model makes a decision based on input β€” e.g., voice recognition triggering a response.
On-Device Learning AI adapting to user behavior directly on a device without sending data to a server.
Lightweight Model A small, efficient version of an AI model designed to run on devices with limited memory or compute.
Model Compression Techniques that shrink model size while preserving performance β€” used to fit AI on embedded systems.

πŸ›‘ B. Compliance & Regulation

Term Definition
EU AI Act A regulation defining AI risk tiers; high-risk systems must follow documentation, risk control, and monitoring protocols.
GDPR The EU’s data privacy law. Applies to any AI system that handles user data, including edge devices.
High-Risk AI AI systems affecting rights, safety, or access (e.g., biometric ID, healthcare). Must meet strict EU AI Act rules.
Conformity Assessment A documented review process showing your AI meets legal standards. Often required before launch in Europe.
CE Certification EU's product compliance mark. May include AI conformity in regulated sectors like healthcare or toys.

βš–οΈ C. Audit & Risk Language

Term Definition
AI Audit An independent evaluation of your AI system’s risks, fairness, documentation, and regulatory compliance.
Bias Detection Analyzing model outputs to ensure fair treatment across user groups (e.g., no gender or racial bias).
Explainability The ability to understand and describe why an AI made a certain decision β€” required for accountability.
Risk Scoring Estimating the potential harm an AI system could cause. Helps decide if a system is β€œhigh risk.”
Traceability Keeping a record of model development, training data, and deployment paths.
Provenance Focused on the origin of data β€” ensures the dataset is ethically sourced and compliant.

πŸ” D. Privacy & Safeguards

Term Definition
Federated Learning A way to train AI across multiple devices without transferring raw data. Enhances privacy.
Privacy-Preserving Inference Running AI models in ways that don’t expose sensitive user data during prediction.
Secure Enclave / TEE A hardware-based safe zone in a chip where sensitive computation occurs β€” helps enforce trust.
Local Logging Storing AI actions on-device, not in the cloud. Enables auditability for edge AI.
Watermarking Embedding hidden markers in outputs or models to prove origin or compliance β€” helps prevent unauthorized use.

🏷 E. Business-Ready Framing

Term Definition
Compliance Badge A visual or digital label signifying that an AI system has passed a defined compliance review.
Self-Assessment Kit A lightweight checklist or tool a company uses internally to test for compliance before hiring experts.
Trust Layer The external presentation of safety: documentation, disclaimers, certificates, and UI indicators.
Audit Trail A complete log of what, when, and how an AI system was tested or adjusted.
Compliance-as-a-Service Subscription or consultant-based offerings that manage AI compliance for startups and device makers.

🟧 Tier 2: Advanced & Strategic Terms (Expanded)

For Training, Client Briefings, or Audit Toolkits

🧠 F. Lifecycle & Governance

Term Definition
Model Card A structured document that summarizes what a model does, what data it was trained on, and how it should be used.
Model Lifecycle Documentation A formal timeline and audit trail of how an AI system was built, tested, and deployed.
Post-Deployment Monitoring Ongoing observation of AI behavior after launch to detect issues or drifts.
Impact Assessment (DPIA/AIA) A legal evaluation of whether an AI system could harm privacy, fairness, or safety.
Sandbox Mode A secure test environment for safely experimenting with new or updated models.
Model Governance The policies, workflows, and approval checkpoints that control how AI systems are developed and released.

🧬 G. Data & Security

Term Definition
Differential Privacy A privacy technique that injects statistical β€œnoise” to protect individual data during analysis.
Data Minimization A design principle: collect only what’s needed for the model to function.
Synthetic Data Fake but statistically accurate data used to train or test AI without violating privacy.
Shadow Data Data that is collected or stored outside official systems or policies, creating hidden compliance risks.
Consent Management Systems that record and enforce when users have opted in or out of data collection.
Edge Security Stack A layered defense system β€” hardware, firmware, and software β€” protecting on-device AI from attacks.