What is the difference between BI reports and other traditional reporting tools?

I would say that traditional reporting tools are a subset of BI reporting. Most BI suites will include traditional reporting as one of the features. With traditional reporting, users define the reports and they are typically coded by IT staff before they are deployed into the system.

Typically, BI systems add ad-hoc and user definable reporting tools as well. In these cases, the IT department defines a "schema" which is typically presented in user terms rather then technical terms and end-users and then use drag and drop tools to create reports. Some times BI vendors call these tools "Analysis tools" - so if you see that in their literature - you'll know what they are talking about.