PYMNTS.com January 20, 2025

Artificial intelligence (AI) has revolutionized how businesses operate, making tasks more efficient, processes smarter, and interactions more seamless. At the heart of many of these advancements is a type of AI called a large language model (LLM). If you’ve used AI tools like OpenAI’s ChatGPT or Anthropic’s Claude, you’ve already encountered an LLM.

But what exactly is an LLM, and why does it matter for your business?

To understand LLMs, it’s first crucial to know what an AI model is and how it’s different from traditional software programs such as Microsoft Word. A software program contains instructions — code — for the machine to tell it how to execute tasks, such as performing math calculations. However, it can only do...

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