Glossary/What is an LLM (Large Language Model)?
AI Concepts

What is an LLM (Large Language Model)?

An LLM is an AI model trained on vast amounts of text that can generate, summarize, classify, and reason about language — the technology behind ChatGPT, Claude, and Gemini.

How LLMs work (simply)

LLMs are trained to predict the next word given what came before — but at scale. After training on hundreds of billions of words, the model develops the ability to write, reason, summarize, translate, and follow instructions in ways that seem like understanding. They don't 'know' things the way humans do — they generate statistically likely continuations of text.

What LLMs are actually good at

Writing and editing text. Summarizing long documents. Classifying data (sentiment, category, intent). Extracting structured data from unstructured text. Translating between languages. Writing and explaining code. Following complex multi-step instructions.

What LLMs are not good at

Precise arithmetic with large numbers. Real-time information (unless given retrieval tools). Consistent factual accuracy on specific, obscure facts. Tasks requiring verified, sourced information without retrieval. Deterministic outputs — the same prompt can give slightly different results.

LLMs in business automation

LLMs are most valuable in business automation when the task requires language understanding that traditional rule-based systems can't handle: classifying messy customer emails, generating personalized content at scale, extracting key data from documents, or making routing decisions based on complex criteria.

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