GLOSSARY

AI-native systems glossary

Clear definitions for the category language used by LaCitty.

AI-native system

A system designed from the start around AI, knowledge, tools, evaluation and governance.

System of record

Software that stores authoritative information about people, transactions or processes.

System of execution

A system that uses information, rules and tools to advance and complete work.

Capability Capsule

A modular LaCitty unit combining knowledge, agents, tools, controls and evidence for one capability.

Agentic AI

AI that can plan or choose actions and use tools within defined objectives and permissions.

Vertical AI

AI products and systems designed for the rules, workflows and evidence of a specific industry.

Value per employee

The economic or operational value generated relative to the number of employees.

Operational leverage

The ability to grow output, revenue or service capacity faster than operating structure.

Bounded autonomy

Autonomous action restricted by permissions, rules, evidence thresholds and escalation paths.

Human checkpoint

A stage where a person reviews, approves, corrects or assumes responsibility for a decision.