LLM – Large Language Model
Large Language Model (LLM): What large language models are, how companies use them, and what matters when it comes to data protection and model selection.
IT Glossary
In brief
A Large Language Model (LLM) is an AI model that has been trained on very large amounts of text to understand and generate language. Well-known examples include the models behind Microsoft Copilot, Claude and ChatGPT, as well as open models such as Llama or Gemma.
In business applications, LLMs typically handle summarising documents, drafting text, answering questions about proprietary content and supporting evaluations. They generate answers based on probabilities, not from a database, which is why source citations, verification steps and clear usage rules are essential.
Three questions are crucial for the selection: where the data is located during processing, which tasks are to be covered, and how costs per user can be made predictable. Read more in the LLM Strategy and for Self-Hosted AI.
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