Model, system, input, inference and output

OECD: What Counts as an AI System?

The OECD definition helps separate a model from a complete system and clarifies how inputs become predictions, content, recommendations or decisions.

Published 2026-07-22Last reviewed 2026-07-22Primary-source analysis
The definition

A machine-based system that infers how to generate outputs

The OECD describes an AI system as a machine-based system that, for explicit or implicit objectives, infers from inputs how to generate outputs that can influence physical or virtual environments. Those outputs can include predictions, content, recommendations and decisions.

Systems vary in autonomy and adaptiveness after deployment. This language is useful because it covers more than generative chatbots while remaining specific enough to distinguish AI from ordinary deterministic software.

Model versus system

The product contains more than the trained model

Model

A core component used to make inferences from inputs.

System

The model combined with data, instructions, interfaces, tools, infrastructure and human processes.

Input

Prompts, documents, sensor data, records, user actions or other information received.

Inference

The deployed process that produces an output from the inputs and system state.

Output

Prediction, content, recommendation, decision or action.

Environment

The physical or virtual setting the output can influence.

Why this distinction matters for search

Do not call the entire discovery product an LLM

A search product may combine crawlers, indexes, knowledge graphs, ranking systems, retrieval tools, an LLM, safety policies and a user interface. Saying “the LLM found the page” hides the components that actually performed discovery, indexing and retrieval.

Hidden Radius uses the OECD distinction to locate responsibility: the model generates, while the larger system determines access, evidence, tools, presentation and operational control.

Autonomy and agents

The level of delegated action changes risk

A system that summarizes sources has a different risk profile from one that books travel, submits a form or modifies an account. Adaptiveness and autonomy should be described in the context of the specific deployment rather than assumed from the presence of a model.

Operational questions

Describe the real system

Source trail

Primary material behind this analysis

OECD Explanation of the Updated Definition of an AI System

A practical distinction among AI systems, models, inputs, inference, outputs, autonomy and adaptiveness.

Open the original source at OECD.AI →

Related reading

Continue through the discovery stack

Large Language Models Explained

An explanation of LLMs, parameters, context, retrieval, tools, product layers and why fluent language is not proof of current evidence.

The Future of Search

A deep explanation of how search is moving from ranked documents toward interpreted requests, retrieval, generated answers, agents and fewer visible choices.

Search and AI Research Library

A research hub connecting NIST, Stanford HAI, OECD, Google, OpenAI, Perplexity, Microsoft, IETF, W3C, Schema.org and original GEO, RAG and REG sources.