What is Large Language Model (LLM)?

Large language models learn statistical patterns in language from enormous text datasets. Given a prompt, they generate a response by predicting likely text, which allows them to answer questions, summarize documents, draft messages, extract information, and hold conversations. Well-known examples include the models behind ChatGPT, Claude, and Gemini.

LLMs power most modern AI tools a small business might use, including AI receptionists, chat assistants, writing tools, and AI search engines. They are flexible and can handle tasks that older rule-based software could not, such as reading a free-form customer message and figuring out what service is needed.

LLMs can also produce confident but incorrect information, often called hallucinations, and their built-in knowledge can be out of date. Reliable business uses give the model accurate source information, limit what it can do, and keep a human involved for important decisions.