LLM (Large Language Model)
AI model trained on billions of words that understands and generates natural language. 2026 examples: GPT-5, Claude 4.7, Gemini 2.5 Pro.
What is an LLM
LLM stands for "Large Language Model". It's a neural network trained on vast text (books, web, code) to predict the next word in a sequence. This simple capability, scaled to billions of parameters, produces emergent abilities: question answering, creative writing, coding, reasoning, translation, analysis.
Relevant models in 2026
- GPT-5 (OpenAI): best for voice (Realtime API), image generation, broad tool use. Price: $2.50 input / $10 output per 1M tokens.
- Claude 4.7 Sonnet (Anthropic): best for code, long-document analysis (1M context), agentic reasoning. Price: $3 / $15.
- Claude 4.7 Opus: max quality for complex tasks. More expensive.
- Gemini 2.5 Pro (Google): cheap alternative, good Google Workspace integration.
- Haiku 4.5 / GPT-5 Mini: small, cheap models for bulk processing.
What an LLM can do for business
- Chatbot answering support, sales, FAQs
- Voice agent handling phone calls
- Internal assistant for documentation (HR, IT, legal)
- Automated personalized email generation
- Summarizing calls, meetings, contracts
- Automatic translation (much better than classic Google Translate)
- Sentiment analysis on reviews or feedback
What it CAN'T do
LLMs don't have real-time internet access (except via tools), don't retain info between conversations (except via artificial memory), can hallucinate (make up facts) - that's why pairing with RAG is essential for production. They're not replacements for databases or deterministic applications.
Frequently asked questions
What's the difference between GPT-5 and Claude 4.7?
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What does it cost to use an LLM monthly?
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Can I run an LLM locally without internet?
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Will LLMs replace developers?
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Related terms
RAG (Retrieval Augmented Generation)
Technique where an AI chatbot answers from YOUR documents (catalog, FAQ, policies), not just from what the model learned. That makes it accurate and updatable without retraining.
AI Chatbot
Messaging software that converses in text with customers on WhatsApp, Instagram, Messenger or your website, using an AI model trained on your documents.
AI Voice Agent
Software that answers phone calls with a natural-sounding voice, understands what the caller wants and executes actions (bookings, orders, transfers) without human supervision.
Autonomous AI Agent (Agentic AI)
AI system that executes multi-step tasks autonomously: plans, uses tools (CRM, email, calendar), makes decisions and adjusts strategy without constant human supervision.