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Glossary L

Glossary · E-commerce

Large language model

Area
E-commerce
Related
AI, RAG, Prompt, Hallucination, SEO, GEO

A large language model (LLM) is an AI model, trained on large amounts of text, that processes text inputs called prompts and generates text outputs from them.

Germany's Federal Office for Information Security (BSI) explains in a study on generative AI models (in German) that large language models generate text from correlations learned in training. They use probability distributions to predict which character, word or sequence of words might come next. Article 3(63) of the EU AI Act defines a related term, the general-purpose AI model. Among other criteria, such a model is not tied to one purpose, handles a wide range of different tasks competently and can be built into many other systems. Recital 99 cites large generative AI models as a typical example.

A model without access to real-time data has no information about current events, the BSI notes. A shop's current stock levels are not in the model, so the application has to supply them, for instance through RAG. We describe GEO as building content so that language models understand, cite and recommend it.

We use models from external providers and neither run nor train our own. We choose the model for each step: in one project, a small model handles simple tasks, a mid-sized one long prompts and the largest demanding reasoning. We are not tied to one provider, and the model behind an agent can be swapped. Local models are possible; we judge case by case whether one is reliable enough.

Where the term appears

Sources

  1. Generative KI-Modelle: Chancen und Risiken für Industrie und Behörden, Version 2.0 vom 17.01.2025 (opens in a new tab)

    Bundesamt für Sicherheit in der Informationstechnik (BSI) accessed

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