Short answer
A large language model (LLM) is an AI model trained on a huge amount of text that can understand and generate language. ChatGPT, Claude, Gemini and most of today’s AI assistants and agents are built on LLMs.
How an LLM works, in plain language
During training the model has “read” an enormous amount of text and learned how words and ideas connect. When you ask a question, it builds the most likely answer step by step. That’s why it writes and understands text brilliantly, but it has no guaranteed knowledge of your company or the latest events.
What an LLM can and cannot do
Can: understand free text, write, translate, summarise, classify, extract data from documents, plan steps (in agents).
Cannot on its own: know your customers, prices and internal rules, guarantee factual accuracy, access your systems.