Skip to content

Understanding AI

AI explained without jargon, and what it asks of you.

Eighteen concepts to understand what models, RAG and agents actually do. For each one: a diagram, an example in a business function, what the law says, and the question to ask your supplier.

The diagram to remember

The six layers of controlled AI.

Useful AI answers a business question, on defined data, with rights and evidence. Most projects only build layer 4: that is why they disappoint or worry people.

  1. 01
    Business questionsWhat you want to know or do, and how the result will be measured.
    Governance
  2. 02
    Definitions and ownersOften forgottenWhat each word means (an invoice, an active customer) and who answers for it on the business side.
    GovernanceComplianceEU · GDPR, Art. 5 (accuracy)
  3. 03
    Connected dataWhere the information lives, how good it is, and what you are allowed to do with it.
    AIComplianceEU · AI Act, Art. 10 · EU · GDPR (minimisation)
  4. 04
    AIModels, search across your documents (RAG), agents that act in your tools.
    AI
  5. 05
    Rights and human sign-offOften forgottenWho can do what, what AI may not do on its own, and who signs off.
    GovernanceComplianceEU · AI Act, Art. 14 · EU · GDPR, Art. 22
  6. 06
    EvidenceOften forgottenLogs, records, tests: what you need to show at any time what was done, and why.
    ComplianceEU · AI Act, Art. 12 · EU · GDPR, Art. 30
Layers 2, 5 and 6 are governance: that is where AI reliability and compliance are decided. The AI Act articles cited apply to high-risk systems; for everything else, they are good practice.

An AI project to frame?

A partner reviews your situation and tells you where to start, layer by layer.

Submit a brief

Educational explainer, not legal advice. Up to date as of 29 October 2026.