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Well for simplicity sake I'll explain.
Magic is created by normal people who envy 'gifted' people, or people born with special powers and the talent to wield them. In other words, any spell that is wielded by humans is called magic.
Esper abilities are base on the scientific technologies of Academy City used to modify humans into Espers. The AIM that they produce stands for "An Involuntary Movement". Once they become Espers, they are considered 'people with talent' and so they are incompatible with magic.
Now for the grey areas- there are unique natural espers that exist outside of Academy City known as gemstones. These are still AIM producing espers, but they are born with their powers, not modified.
Saints and Valkyries are also people born with 'talent' but strangely enough, they can use magic.... I need to dig deeper into this and whether or not their have their own special class of spells.
God's Right Seat are special humans that can't use normal magic, but can instead use powerful Angelic magic.
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