A model is a computational core—an algorithm with trained parameters that converts inputs into outputs. It performs a specific task: a classification model recognizes images, a language model generates text, and a predictive model estimates future values.
A system, on the other hand, represents the entire tool that the user interacts with, i.e., the complete application or platform that uses the model and makes it available to users; it includes the user interface, additional features, security measures, etc.
A system can be built on one or more models, and conversely, multiple systems can run on a single model.