Definition
An AI model trained on massive text data that can generate, summarize, and reason about language. GPT, Claude, and Gemini are LLMs. The core technology powering most modern conversational AI.
Why it matters
LLMs are the engine behind nearly every AI tool a small business touches, from the chatbot on a website to the assistant that drafts an email or answers a customer call. Because the same underlying model can be pointed at many jobs, an owner rarely buys an LLM directly; they buy a service built on one and inherit its strengths and quirks. The main thing to watch is that these models predict plausible language rather than look up verified facts, so anything customer-facing or money-related still benefits from a human check before it goes out.