What Is an AI API?
An AI API (Application Programming Interface) is the endpoint through which software applications send data to AI models and receive responses — abstracting away the complexity of model hosting, scaling, and management. Examples include OpenAI's API, Anthropic's API, Google's Vertex AI, and AWS Bedrock.
How Do Businesses Use AI APIs?
AI APIs are the building blocks of business AI applications. Your customer service bot calls an LLM API to generate responses. Your document processor calls an API to extract information. Your analytics tool calls an API to summarize data. The key decisions are: which provider, which model tier, how to handle rate limits and failures, and how to control costs. An AI gateway helps manage multiple API providers centrally.