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What is an LLM or language model?

A Large Language Model processes language and generates text. At work, it becomes particularly useful when it has relevant sources and clearly scoped tools.

AI LabsUpdated 2 sources

A simplified language-model pipeline

Input textTokensContext & modelNext tokensAnswer
Token boundaries depend on the model's tokenizer. Tokens are not the same as words.

From text to an answer

A model breaks input into tokens: small pieces representing words, word fragments or characters. Using the context so far, it calculates a suitable continuation. Many current language models use transformers, an architecture that processes relationships between these pieces.

The result may be a summary, translation, structured draft or planned tool action. Fluent wording, however, does not prove that every statement is correct.

Connecting general knowledge with business context

Training teaches a language model general patterns and relationships. Current price lists, internal policies and project updates provide additional context. RAG connects the retrieval of approved document passages with answer generation.

A large context window leaves room for more material but does not guarantee that the right information is found or weighted correctly. Relevant sources and precise tasks still matter.

A useful first task

A summary with open questions illustrates the practical value: the model condenses an approved text while figures and commitments remain traceable to the original. For consequential decisions, the draft supports expert review.

  • State the goal and desired format
  • Provide sources and boundaries
  • Ask for uncertainty to be identified

Sources & further reading

Original research, provider documentation and further reading on the concepts and figures discussed here.

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