What it means
An API is like a menu for software. It lists what a system can do for other programs, such as "get this customer" or "create an invoice", and the format each request and answer must use. The other program does not need to know how the system works inside. It only needs to follow the menu.
Most business software offers an API. That is what allows your website to send leads to your CRM, your store to talk to your payment provider and AI assistants to reach your data.
Why it matters for a business
Whether a tool has a good API decides how well it can fit into the rest of your business. When choosing software, check the API before you sign: what data it exposes, what actions it allows and how it handles security and limits.
A business example
Things to watch
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Check rate limits, which cap how many requests you can make.
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Keep API keys secret and give each one the smallest access it needs.
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Watch for version changes that can break integrations.