Microsoft says these are the AI terms you need to know

Microsoft released its annual Work Trend Index report on Tuesday, which argued that 2025 is the year that companies stop simply experimenting with AI and start building it into key missions.

As part of its release, Microsoft put together a glossary that it says is comprised of “new terms to know for a new world of work.”

Here’s the list:

• Agent: An AI-powered system that can reason, plan, and act to complete tasks or entire workflows autonomously, with human oversight at key moments.
• Agent boss: A human manager of one or more agents.
• Capacity gap: The deficit between business demands and the maximum capacity of humans alone to meet them.
• Digital labor: AI or agents that can be purchased on demand to scale workforce capacity.
• Frontier Firm: A company powered by intelligence on tap, human-agent teams, and a new role for everyone: agent boss.
• Human-agent ratio: A new business metric that optimizes the balance of human oversight with agent efficiency on human-agent teams.
• Intelligence resources: A function dedicated to managing digital labor on an organizational level—think of it as a blend of IT and HR.
• Work Chart: The next org chart, structured not around functional expertise but around jobs that need to be done.

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