Glossary

LLM (Large Language Model)

A type of AI model trained on massive amounts of text data, capable of understanding and generating natural language at human-comparable quality for most tasks.

An LLM (Large Language Model) is a neural network — usually a transformer architecture — trained on hundreds of billions to trillions of tokens of text data. The result is a model that can understand and generate natural language across most domains, follow complex instructions, and reason about novel situations.

Current production-grade LLMs as of 2026:

  • Claude (Anthropic): Opus 4.7, Sonnet 4.6, Haiku 4.5 — the default choice for serious automation work
  • GPT-4o / GPT-5 (OpenAI): widely deployed, strong general capability
  • Gemini 2 Pro / Flash (Google): strong long-context, native multimodal
  • Llama 4 (Meta): open-weights option for self-hosting

Key properties relevant to automation:

  • Context window. How much text the model can consider at once. Modern models handle 200K+ tokens (Claude Sonnet 4.6 handles 1M tokens).
  • Tool use. Modern models can call functions you define, enabling agent behavior.
  • Reasoning depth. Larger / more capable models reason better at complex problems but cost more per call.
  • Latency. Smaller models respond in milliseconds; larger models can take seconds.
LLMs are the reasoning layer of modern AI automation. The rest of the stack (knowledge layer, integration layer, orchestration, interface) is what turns the LLM's capability into actual business automation.

Example

In a customer support workflow, the LLM reads an inbound ticket, classifies it by topic + urgency, retrieves relevant docs from a knowledge base, drafts a response grounded in those docs, and either sends it or escalates to a human depending on confidence. The LLM is doing the thinking; the rest of the system is doing the orchestration.

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