What is Large Language Model (LLM)?
A Large Language Model (LLM) is a neural network trained on vast text corpora that can understand, generate, and reason about natural language, serving as the foundation for modern AI agents and assistants.
WHY IT MATTERS
Large Language Models are the engines behind the current AI revolution. Models like GPT-4, Claude, Gemini, and Llama are trained on trillions of tokens, learning patterns of language, reasoning, and knowledge that emerge at scale.
What makes LLMs transformative for agents is their generality. A single model can understand instructions, reason about complex tasks, generate code, parse structured data, and make decisions — all capabilities needed for autonomous agents.
The key limitation: LLMs are probabilistic. They predict the most likely next token, which means they can be confidently wrong. For financial applications, this means you need deterministic guardrails around LLM-driven decisions.