Glossary

    What Is an LLM (Large Language Model)?

    A Large Language Model (LLM) is a type of AI trained on vast amounts of text data that can understand and generate human language. LLMs power tools like ChatGPT, Google Gemini, and Anthropic Claude.

    Businesses use LLMs to build chatbots, automate document processing, generate content, analyse customer feedback, and power internal knowledge tools. LLMs are the engine — the product your business uses is built on top of them, customised for your specific data and use case.

    Different LLMs have different strengths: some are better at reasoning, others at long context windows, others at cost-efficient high-volume tasks. Choosing the right model for the right job is one of the most important architecture decisions in any AI build.

    One-line definition

    A Large Language Model (LLM) is a type of artificial intelligence model trained on vast amounts of text data to understand and generate human language. LLMs can read, summarise, translate, write, answer questions, write code, and reason — across almost any topic and in almost any language.

    How LLMs work in plain English

    LLMs are trained by processing enormous quantities of text — books, websites, code, papers, conversations — and learning to predict what word comes next in a sequence. Through this process, at massive scale, the model develops what appears to be a general understanding of language, facts, reasoning, and structure.

    The result is a model that can take a text input (called a prompt) and produce a useful text output — an answer, a summary, a piece of code, a draft document — based on patterns learned during training. Modern LLMs use a neural network architecture called the Transformer. The "large" refers to the number of parameters — the numerical weights learned during training. Current frontier models have hundreds of billions of parameters.

    The major LLMs

    GPT-4 / GPT-4o (OpenAI) — widely used, strong reasoning, available via API. Claude 3.5 / Claude 4 (Anthropic) — strong at long documents, reasoning, and following complex instructions. Gemini (Google) — integrated with Google's ecosystem, strong at multimodal tasks. Llama (Meta) — open-source, deployable on your own infrastructure. Mistral — European open-source alternative, efficient and fast.

    What businesses use LLMs for

    Customer support: chatbots that answer questions from product documentation. Content generation: drafting emails, proposals, product descriptions, reports. Code generation: writing, reviewing, and debugging code. Document processing: summarising contracts, extracting data from forms and invoices. Internal knowledge: staff asking questions and getting answers from company documents. Data analysis: describing datasets and surfacing patterns in plain English.

    LLMs vs. traditional software

    Traditional software follows explicit rules written by programmers. An LLM learns patterns from data and applies them to new situations. This makes LLMs powerful for tasks that are difficult to specify with rules — understanding intent, handling varied inputs, generating natural language — and less suited for tasks requiring guaranteed precision, like financial calculations or safety-critical decisions.

    Using LLMs in business — build vs. API

    Most businesses do not train their own LLMs — the cost is prohibitive. Instead, they access frontier models via APIs and build products and workflows on top. Customisation is done through prompt engineering, fine-tuning, or RAG (connecting the model to your documents at inference time).

    How KlivIQ works with LLMs

    KlivIQ builds AI tools using OpenAI, Claude, and Gemini — selecting the right model for each use case and building the integration, retrieval, and orchestration layers around it.

    How KlivIQ uses this

    KlivIQ builds business systems on top of leading LLMs — selecting the right model per use case and wrapping them in production-grade architecture, RAG, and evaluation.

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    Frequently asked questions

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