In practical terms, an AI app is an application whose central interaction includes a call to a language model. The interface lets someone use that model without opening a notebook, running a cell, or reading the Python code behind it.
The application might answer a question directly, search documents before answering, or take several actions with external tools. These experiences share the same basic shape: accept input, send useful context to a model, and present the result. That shape stays the same whether the model is hosted by a cloud provider or runs on infrastructure you control.