Large language model
An AI system trained on huge amounts of text to understand and write language, like the chatbots people use every day.
In plain English
A large language model learns patterns from billions of sentences, then predicts which words should come next. That makes it very good at reading, summarising and writing. It does not make it good at predicting things that aren't in the text.
Uncle Gary explains
A language model is the friend who has read every book in the library and will answer any question in a calm, confident voice. Including the questions nobody knows the answer to.
Why it matters for your money
Language models are great at language. Predicting the market is a different skill, and confidence is not evidence. In our test, an AI's judgement of 599 news stories had zero link with the next price move.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.