The mechanism
A large language model takes text and produces the next piece of text, over and over, one piece at a time. It was trained by being shown an enormous quantity of writing with parts hidden, and adjusted until its guesses about the hidden parts got good. That's the whole trick, and every capability and failure comes out of it.
This sounds too simple to explain what these systems do. But predicting the next word well, across every kind of writing, requires representing an extraordinary amount about how language, arguments, code, and facts fit together. Capability is a side effect of doing prediction properly at scale.
Tokens and the context window
Models don't read characters or words — they read tokens, chunks of a few characters each. "Learning" might be one token; an unusual name might be four. As a rough guide, a token averages around three-quarters of an English word.
Two consequences worth knowing. Pricing is per token, so cost is roughly proportional to text length in and out. And each model has a context window — the maximum tokens it can hold at once, covering your prompt, any documents you paste, and its own reply.
What it's good and bad at
| Good at | Bad at |
|---|---|
| Rewriting, summarising, changing tone | Precise arithmetic and counting |
| Explaining a concept several ways | Knowing what happened after its training data ended |
| Writing code in well-documented, common patterns | Anything about your private systems it wasn't shown |
| Extracting structure from messy text | Saying "I don't know" without being asked to |
| Translating between formats | Reliably citing sources it hasn't been given |
Every row on the right follows from the same fact: the model is producing plausible text, not consulting anything. Arithmetic fails because a correct sum and a plausible-looking sum are different targets. Recent events fail because they weren't in the training data. Private systems fail for the same reason.
Why it's confidently wrong
A fabricated answer is usually called a hallucination, which makes it sound like a malfunction. It isn't. The model is doing exactly what it does at all times — producing likely-looking text. A citation that doesn't exist looks precisely like a citation that does, from the inside of the mechanism.
Worse, confidence is a property of the writing style, not of the model's certainty. Text that hedges is trained on text that hedges. A wrong answer delivered in the register of a textbook is the default output, not a warning sign.
- Give it the source material instead of relying on recall — pasted documents are checkable, memory isn't
- Ask for the reasoning, then check the reasoning rather than the conclusion
- Never accept a fact you can't verify in a domain where being wrong is expensive
- Treat named citations, statistics, and API signatures as unverified until checked
Using one well
- Supply context rather than assuming knowledgePaste the actual file, the actual error, the actual document. Almost every bad answer traces to missing context.
- Say what the output should look likeFormat, length, audience. Ambiguity gets filled with the most average possible choice.
- Ask for options, not one answerThree approaches with trade-offs is a far better use of the tool than one confident recommendation.
- Verify anything that would be costly to get wrongRun the code. Check the citation. The verification step is not optional, it's part of the workflow.
Common mistakes
- Treating it as a search engine with an opinion
- Assuming it remembers your last conversation
- Trusting numbers, citations, or API signatures without checking
- Reading confident phrasing as a signal of correctness
- Asking a vague question and blaming the model for an average answer
Key takeaways
- An LLM predicts the next token; everything it does well and badly follows from that
- Context windows are finite and nothing persists between calls
- Fabrication is the mechanism working normally, not a bug that will be patched away
- Supplying source material beats relying on the model's recall
Try it yourself
Ask a model a factual question about a small, specific topic you know well — your own town, your own field. Then ask the same question with the relevant page pasted in. Comparing the two answers teaches more about these tools than any explanation.
