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Reference

Glossary

AI, Compliance & IT Terms Explained – key concepts from AI integration, Agentic AI, NIS2, EU AI Act, and IT transformation.

Agentic AI

AI systems that autonomously plan, execute, and make decisions. Unlike traditional chatbots, agents act proactively and can independently carry out multi-step tasks.

Autonomy Levels

Graduated levels of AI agent independence: assistive (human decides), semi-autonomous (agent acts within defined boundaries), or autonomous (agent acts independently within a regulatory framework).

BSI

Federal Office for Information Security (Bundesamt für Sicherheit in der Informationstechnik). The German federal authority responsible for cybersecurity, NIS2 implementation, C5 attestations, and critical infrastructure regulation.

Compliance-by-Design

An approach where regulatory requirements (EU AI Act, NIS2, GDPR) are embedded into the design of an AI system from the outset – rather than being checked retroactively.

GDPR

General Data Protection Regulation (EU) 2016/679. Governs the protection of personal data in the EU. Particularly relevant for AI systems processing personal data – e.g., in customer inquiries or HR processes.

EU AI Act

Regulation (EU) 2024/1689 on the regulation of AI systems. Defines 4 risk classes (prohibited, high-risk, limited, minimal) and becomes fully applicable on 2 August 2026.

Fine-Tuning

Additional training of a pre-trained AI model (e.g., LLM) on company-specific data to improve quality for domain-specific tasks. An alternative to RAG, but more complex and costly.

Fractional AI Officer

An external C-level AI executive who manages a company's AI strategy, governance, and compliance 3–4 days per month – without a full-time position.

Hallucination

A phenomenon where an AI model generates plausible-sounding but factually incorrect information. Particularly critical in regulated environments – making human-in-the-loop oversight and fact-checking essential.

Human-in-the-Loop

A design principle where a human is involved in the AI agent's decision-making process – e.g., for approvals, quality control, or critical decisions. Mandatory for high-risk AI systems under the EU AI Act.

ISMS

Information Security Management System. A structured framework for information security based on ISO 27001/BSI IT-Grundschutz. Core of NIS2 implementation: policies, risk management, incident response, and continuous improvement.

AI Governance

The organizational framework for AI deployment: roles, responsibilities, decision-making processes, documentation, and monitoring of AI systems.

AI Readiness

Assessment of a company's maturity for AI adoption across 5 dimensions: strategy, data, compliance, organization, and technology.

AI System Register

Documentation of all AI systems deployed in an organization, including risk classification under the EU AI Act. Mandatory for high-risk AI and part of conformity documentation.

IT Carve-Out

The separation of a company's (or business unit's) IT landscape as part of an M&A transaction. Covers infrastructure, applications, licenses, contracts, and identity – under signing/closing time pressure.

Critical Infrastructure (KRITIS)

Critical infrastructure as defined by German BSI legislation. Companies in sectors such as energy, healthcare, transport, and finance with special cybersecurity obligations.

LLM (Large Language Model)

Large language models such as GPT-4, Claude, or Llama. The foundation for AI agents that can understand and generate natural language and be deployed in business processes.

Reporting Obligation (NIS2)

Legal obligation to report security incidents: 24-hour early warning to the BSI, 72-hour incident report with initial assessment, and 1-month final report with root cause analysis.

NIS2

EU Directive 2022/2555 on network and information security. In force in Germany since December 2025. Affects approximately 29,500 companies with reporting obligations (24h/72h) and personal liability for management.

PoC (Proof of Concept)

A prototype implementation of an AI agent in a real business process to validate feasibility and business value before investing in a production rollout.

Founder Model

A consulting approach where senior experts personally work on client projects – as opposed to the pyramid model of large consultancies, where junior consultants handle the operational work.

RAG (Retrieval Augmented Generation)

An architecture pattern where an LLM accesses an external knowledge base (e.g., company documents) to answer queries. Reduces hallucinations and enables domain-specific AI without fine-tuning.

Risk Class (EU AI Act)

Classification of an AI system under Art. 6 EU AI Act into one of 4 classes: Prohibited (e.g., social scoring), High-Risk (e.g., AI in HR, credit decisions), Limited (e.g., chatbots with transparency requirements), or Minimal (e.g., spam filters).

RPA (Robotic Process Automation)

Software robots that automate rule-based, repetitive tasks. Platforms like UiPath increasingly combine RPA with AI agents (Agentic AI) for smarter, context-aware automation.

Virtual CISO

An external Chief Information Security Officer who manages a company's cybersecurity strategy on demand. Typically 3–4 days per month.

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