← All articlesPRACTICAL KNOWLEDGE

Large language models explained

An LLM processes language as numeric token sequences and predicts likely continuations from its context. It can apply patterns remarkably well, but has neither human understanding nor an inherent truth check. The article provides a controlled method, a realistic CTPM practice example and a concrete transfer artefact.

Realistic enterprise scene illustrating Large language models explained
Short answer

An LLM processes language as numeric token sequences and predicts likely continuations from its context. It can apply patterns remarkably well, but has neither human understanding nor an inherent truth check.

What the concept actually means

Tokenisation, training, parameters and inference explain the mechanism better than the metaphor of a digital brain. The model reconstructs each answer, so identical questions may yield different results.

Why it matters in the enterprise

For enterprises this implies a clear separation: the model supplies drafts and transformations; dependable organisational knowledge comes from approved sources, rules, databases and human expertise.

A controlled method

The CTPM practice framework for controllable AI applications uses seven stages: understand the task, clarify context and data, apply AI deliberately, review professionally, handle deviations, approve accountably and document transfer. It is a transparent working framework, not a certification.

  • Define task and impact
  • Clarify data, context and permissions
  • Review against domain criteria
  • Control deviations, approval and evidence

CTPM practice example

CTPM practice example: A project lead uses an LLM to extract actions from minutes. Names, dates and commitments are not accepted blindly; they are checked against the approved record and responsible owner.

Quality and test criteria

The following criteria make quality observable for this use case:

  • Model and version are documented.
  • Relevant context is complete and permitted.
  • Outputs are tested against domain criteria.
  • Non-deterministic variation is anticipated.

Risks and common misconceptions

Risks include anthropomorphism, trusting a model’s self-assessment, and assuming that training provides access to current or internal facts.

Example transfer artefact

Transfer artefact: an accessible model card for the intended use, covering purpose, limits, data, review duties and approved tasks.

Sources and references

  1. NIST: Artificial Intelligence Risk Management Framework: Generative Artificial Intelligence Profile (2024)
  2. OWASP GenAI Security Project: OWASP Top 10 for LLM Applications 2026 (2026)
  3. OpenAI: Working with evals (2026)