What is an LLM (large language model)?
An LLM is an AI system that processes and generates natural language using deep learning. Learn how LLMs work and how your business can benefit.
1/13/20259 min read


What is an LLM and how does it work?
Some companies are already using LLMs to gain a competitive edge over those that haven’t yet adopted AI tools — or have struggled to unlock their full potential. If your business hasn’t jumped on board yet, now’s the time to explore how LLMs can help you get ahead of the competition, save time, and cut costs. Read on to find out how to use LLMs to your advantage.
What is an LLM (large language model)?
A large language model (LLM) is a subset of artificial intelligence (AI) that processes and generates natural language by using advanced pattern recognition and deep learning techniques. These large-scale models rely on neural networks to analyze the context and meaning behind words.
LLMs perform a wide range of language-based tasks — they’re able to answer questions, create content, summarize complex information, and even identify the emotional tone or attitude expressed in a piece of text.
Businesses can use LLMs for various tasks, from content production and customer service chatbots to making sense of unstructured data. For example, a company can use an LLM to analyze customer feedback emails, categorize complaints, and prioritize urgent issues, so that teams may be able to respond faster.
How do LLMs work?
Large language models operate by analyzing vast amounts of data to identify patterns, enabling them to predict language responses and generate content. By learning from extensive examples — such as books, articles, and other sources — these models mimic the flow, context, and style of human language.
LLMs rely on deep learning, a subset of machine learning that uses neural networks to process and learn from data. Inspired by the structure of the human brain, neural networks consist of layers of interconnected nodes that exchange information and recognize patterns. This architecture allows LLMs to adapt to complex linguistic structures and produce coherent, human-like text.
How are LLMs trained?
LLMs are trained using vast datasets and machine learning techniques. The process begins with collecting enormous amounts of text data, often by “scraping” billions of pages from the internet. This data is essential for teaching the models patterns in grammar, semantics, and style. The more diverse and high-quality the data, the better the model can learn and perform.
At the core of LLM training are “parameters” — fine-tuned settings within the neural network that enable the model to make predictions and generate outputs. In simple terms, a higher number of parameters allows the model to produce more detailed and accurate content.
Deep learning, a subset of machine learning, is essential to this process. It enables the model to identify probabilities and patterns in the data. Neural networks process this information through multiple layers, transforming raw text into meaningful and coherent outputs.
Training doesn’t stop there. LLMs can improve over time by interacting with users. Techniques like reinforcement learning with human feedback allow the models to adapt and refine their performance based on real-world inputs. While LLMs may seem autonomous, they rely heavily on human creativity, expertise, and data to function.
Although LLMs specialize in language, recent advancements in AI combine text with images, sounds, and other data types. These developments push the boundaries of what AI can achieve, making LLMs an evolving tool. Despite their complexity, the foundation of these models remains rooted in data, mathematical principles, and human guidance.
Use cases of LLMs
AI technologies like LLMs can help your businesses with everyday challenges. Here are some key ways your company could put a large scale model to use, with practical examples for different tasks:
Chatbots. You can use LLMs to power chatbots and other tools that instantly answer customer or employee questions by pulling information from the company’s internal knowledge base or FAQs with minimal human intervention. Natural language processing allows these chatbots to respond to queries and provide accurate answers.
Copywriting or text generation. LLMs may be able assist in creating marketing copy, product descriptions, blog articles, or social media posts. The AI-written copy may serve as a foundation for longer content after being reviewed and edited by a copywriter or editor. The marketing team can also use an LLM as a brainstorm buddy.
Text classification. LLMs can effectively categorize text. For example, they may be able to tag emails as spam, prioritize customer inquiries, or organize feedback. A practical application could include automating the triage of support tickets to route urgent issues to the right team.
Code generation. LLMs can write snippets of code based on a description of your desired functionality. For example, developers can use LLMs to generate a Python script for data visualization from a plain English description to speed up the workflow. These codes, however, should be checked for accuracy.
Customer sentiment analysis. Advanced LLMs can identify the emotional tone of text, such as determining whether customer feedback is positive, negative, or neutral. For instance, businesses have been known to use LLMs to analyze product reviews to measure customer satisfaction trends and identify areas for improvement.
Translation. LLMs are able to convert text between languages and provide initial drafts, which can possibly help translators save time and allow them to focus on refining nuanced meanings. For example, they can be used to translate product manuals for global markets to try and quicken the process of localization.
Summarization. One of the most common tasks that LLMs may be able to help you with is condensing long documents or articles into concise summaries that are easier to digest. You might use an LLM to summarize market research reports to review them quickly before an urgent meeting after which you can take your time and read the report thoroughly.
Examples of LLMs
If your business needs to save time and resources, large language models offer solutions for automation, research, and customer interactions. Let’s explore the key players in the LLM industry and what they might bring to the table so that you can choose the right ones to experiment with for your business.
GPT
OpenAI’s GPT models are at the core of ChatGPT, which has become synonymous with conversational AI since its launch in November 2022. These models handle a wide range of text-based tasks, from answering questions to generating code and essays. ChatGPT’s user-friendly design, accessible via web and mobile apps, and features like GPT-4-powered ChatGPT Plus make it a go-to tool for users, including businesses, seeking flexibility and advanced AI capabilities.
GPT-4 also powers Microsoft’s Copilot, a powerful assistant embedded directly into its Office suite, aiming at increasing workplace productivity. Released in March 2023, Copilot can be used to automate repetitive tasks, generate summaries, and assist with content creation across Word, Excel, PowerPoint, and Teams.
Claude
Anthropic’s Claude LLM is built with a focus on safety and ethics in AI, prioritizing responsible and controllable outputs, which is an important consideration in the field. Launched in March 2023, Claude can help with brainstorming, summarization, and question-answering. Its emphasis on ethical AI makes it particularly appealing to researchers and businesses prioritizing trust and reliability in their tools.
Gemini
Gemini (formerly known as Bard) is Google DeepMind’s step into multimodal AI. Launched in December 2023, this model, powered by Google’s PaLM, combines advanced language understanding with the ability to process images and other data types. Designed for tasks that would require complex reasoning and interactive capabilities, Gemini uses Google’s vast data resources and integration into its ecosystem. As a direct competitor to OpenAI’s GPT-4, Gemini emphasizes multimodal interaction.
Llama
Meta Platforms attempted to bring Llama (Large Language Model Meta AI) to the forefront of AI research with its open-source initiative. Released in February 2023 and later updated in July, Llama can serve researchers and developers who are looking for customization and scalability. It comes in different sizes, so it can match different computational needs. This flexibility sets it apart as a model for experiments and precise adjustment
Mistral
Mistral is the flagship model from Mistral AI. Released in September 2023, Mistral 7B combines cutting-edge technology with resource efficiency, which makes it an option for users with limited computational power.
Falcon
The Falcon family of models, created by the Technology Innovation Institute (TII), provides open-source tools for the field of LLMs. Released in June 2023, Falcon-40B aims to be accessible for both commercial and research applications. Its open-weight architecture has the goal of democratizing AI research and can serve as a resource for developers.
Cohere Command
Cohere Command provides an enterprise-focused language model designed for summarization, classification, and search. Cohere, a Canadian company specializing in natural language processing and large language models, launched it in 2023 with optimization for specific industries, offering access through cloud and API-based deployment. Its specialized approach makes it an option for boosting operational efficiency in enterprise settings.
BLOOM
Unlike many proprietary models, BLOOM takes a community-driven approach. BigScience, a collaborative research initiative led by the French AI company Hugging Face, released BLOOM in July 2022, and it supports 46 languages as well as several programming languages. The open-access design promotes transparency and ethical AI development.
Advantages of LLMs
LLMs are meant to process vast data, understand natural language, and attempt to deliver human-like responses, which can help with specific language-related tasks and allow your teams to shift their focus on other things. Overall, LLMs are expected to provide the following advantages:
Versatility. LLMs are created to perform a wide range of tasks, including language translation, content generation, and chatbot interactions.
Efficiency. They are meant to process vast amounts of data at high speed and support real-time applications that require immediate responses.
Accuracy. LLMs try to generate human-like responses to natural language inputs with the goal of improving the quality of interactions in applications like virtual assistants.
Transfer learning. Developers can try to fine-tune LLMs for specific tasks with transfer learning. This approach can enable the creation of specialized models without starting from scratch.
Limitations of LLMs
LLMs purport to offer impressive capabilities, but if you rely on them without acknowledging their limitations you may get poor performance and unwanted results. Let’s explore the key challenges of these tools.
Biases in outputs. LLMs may reflect biases present in their training data, producing biased outputs that reinforce existing social and cultural inequalities. Depending on the training data, LLMs may even produce harmful content.
Hallucinations. LLMs sometimes generate false or fabricated information, especially when they lack sufficient data to provide accurate answers.
Data security risks. Users uploading confidential data into LLMs risk exposing sensitive information because these models are not designed to function as secure vaults.
Limited comprehension. LLMs often fail to understand context and meaning fully, which can sometimes lead to inaccurate or inappropriate responses.
Technical vulnerabilities. LLM-based applications can experience bugs or be manipulated with malicious inputs, resulting in unethical or harmful responses.
Struggling with multiple models. While a single LLM can handle various tasks, it often falls short of covering all the specific needs of your business. This means you typically need to deploy multiple LLMs tailored for different purposes, which can be time-consuming and present additional operational complexities.
Simply adopting the latest large language models isn’t enough. You need to manage and integrate the LLMs across multiple layers of your operations, which is a task in itself. That’s where nexos.ai comes in, offering simplified orchestration of AI models, including LLMs, for your business.
With nexos.ai, you’ll be able to access all your AI models in a single API. Also, nexos.ai automatically selects the most cost-effective and best-performing model for the task at hand. Let nexos.ai power your next big step!
The future of LLMs
In the near future, developers expect LLMs to have improved results accuracy, and produce more reliable outputs. Some developers are already focusing on refining these models to reduce errors to make them more suitable for business applications.
Businesses can also look forward to LLMs incorporating audiovisual training, a development that moves beyond traditional text-based models. By integrating video and audio inputs, LLMs will open up possibilities such as autonomous vehicle applications and multimedia content analysis. This expanded capability will likely give companies even more ways to apply AI across sectors like transportation, media, and customer service.
In the workplace, LLM technology is expected to be fully ready to handle clerical tasks, customer service interactions, and simple copywriting with much more accuracy than it does today. As conversational AI improves, software-based virtual assistants will better understand user intent and execute more complex commands.
Overall, LLMs are expected to become easier to use, more accurate, and more affordable. These factors may contribute to their use as a practical tool for more types of businesses.
FAQ
Why are LLMs important to businesses?
LLMs can help businesses save time, reduce costs, and improve efficiency by automating tasks like customer support, content creation, and data analysis. This way, large language models should allow teams to focus on strategic goals.
What is the difference between an LLM and an NLP?
LLMs are advanced AI models designed to generate and analyze human-like text. In contrast, natural language processing (NLP) is a broader subfield of AI that focuses on enabling computers to interpret, generate, and respond to human language in a meaningful and useful way.
In simpler terms, NLP encompasses a wide range of linguistic tasks — such as sentiment analysis, machine translation, and speech recognition — beyond the specific capabilities of LLMs. LLMs are a subset of NLP tools, specializing in tasks like text generation, summarization, and language understanding at scale.
How can you manage multiple LLMs?
To manage all your LLMs effectively, you need an agentic AI tool or solution designed to orchestrate and optimize their use. With nexos.ai, you can access 200+ AI models from all major providers with a single API. This easy-to-use AI orchestration solution will auto-select the best model for each prompt, improving accuracy, speed, and customer satisfaction.

See nexos.ai in action
Be one of the first to see nexos.ai in action — request a demo below.
Get in touch with nexos.ai
hello@nexos.ai
Fred. Roeskestraat 115, 1076EE Amsterdam
© 2025. All rights reserved.