Latent Space
Latent space is the model's internal map of concepts, a multidimensional representation of ideas learned during training. In this space, similar things are closer together (e.g., "luxury" and "elegant"). When AI generates text or images, it navigates through this space to produce coherent results.
Want the full picture? This term comes from GenAI for Business, a complete free book on generative AI strategy and implementation by Prof. Shubin Yu (HEC Paris).