Large Language Model
A type of generative AI trained on vast amounts of text to understand and produce human-like language. Powers chatbots, drafting tools, and search systems.
A large language model (LLM) is a type of generative AI trained on large amounts of text data to understand, generate, and manipulate human language. LLMs power chatbots, document summarization, drafting tools, and code generation.
In insurance, LLMs are used for customer service, claim note drafting, policy explanation, and internal research. They are also a common source of shadow AI, because employees can access consumer-grade LLMs through browsers without IT approval.
LLM risks include hallucination, data leakage, lack of explainability, and bias in training data. Governance should classify LLM use cases by risk, restrict high-risk uses, and ensure that sensitive data is not sent to public or unapproved models. See our glossary entries on generative AI, AI vendor risk assessment, and shadow AI.