An ontology is a shared, formal definition of an organization’s core business concepts and the relationships between them. It provides a structured way to represent meaning so that systems can understand not just data, but what that data represents in the real world.
Why it matters:
Ontologies give AI systems clear concepts to reason about instead of inferring meaning implicitly. This enables more accurate reasoning, better interoperability, and reduced ambiguity across models, agents, and applications.




