09/25/2025

Top 10 Executive-level Questions Related to How LLMs Work

Leaders need to know the essentials of how large language models

In my work at at MIT Sloan School of Management, I have taught the basics of how large language models (LLMs) work to many executives during the past two years.

Some people posit that business leaders neither want to nor need to know how LLMs and the generative AI tools that they power work — and are interested only in the results the tools can deliver. That is not my experience. Forward-thinking leaders care about results, of course, but they are also keenly aware that a clear and accurate mental model of how LLMs work is a necessary foundation for making sound business decisions regarding the use of AI technologies in the enterprise.

In this column, I share questions on 10 often-misunderstood topics that I am often asked about, along with their answers. You don't need to read a book on each one of these topics, nor do you have to get into the technical weeds, but you do need to understand the essentials.

Please select this link to read the complete article from MIT Sloan Management Review.