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Why Large Language Models Still Don’t “Understand” — and Why That Matters

Luna Valermo by Luna Valermo
December 30, 2025
in Business
Reading Time: 3 mins read
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Large Language Models (LLMs), like GPT-3 or GPT-4, have become integral parts of technology we use every day. They help us with writing, answer questions, and even translate languages. However, a common question arises: do these models truly understand the information they process? The simple answer is no, and here’s why that distinction is essential.

The Mechanics of Language Models

Before diving into understanding, it’s crucial to know how LLMs like GPT-3 work. These models are essentially complex mathematical apparatuses trained on extensive datasets. They process language by identifying patterns and structures within the provided data to predict and generate human-like text. They do this remarkably well, which often makes them appear intelligent.

However, it is important to note that LLMs do not have consciousness or comprehension. They don’t “know” the meanings behind the words they’re using; they only recognize patterns. Think of it like a sophisticated autocomplete function. It knows that certain words are likely to follow others, but it doesn’t grasp the underlying meaning.

Difference Between Priding Language Skills and Understanding

Understanding language goes beyond being able to string sentences together correctly. Human understanding involves comprehension, nuance, context, and emotion, which LLMs lack. They can mimic these elements because of the data they’ve been trained on but lack intrinsic understanding.

For instance, if you input many instances of the word “happy” in a content generator, LLMs can produce sentences about happiness. However, they do not experience emotions, nor understand them as a human does. They process cues but do not ‘feel’ or ‘connect’ with the content.

Why Genuine Understanding Matters

Understanding the difference between generating language and understanding it is crucial for several reasons:

  • Implementation in Sensitive Contexts: In areas such as mental health or personal advising, having a software that truly understands user needs is crucial. Without genuine comprehension, responses could be misplaced or misinterpreted, leading to potentially harmful outcomes.
  • Trust and Reliability: When people converse with an AI, they need to trust the advice or generated content. Knowing these systems don’t actually understand might affect the level of trust users are willing to extend.
  • Ethical Implications: There are ethical concerns over how much control and decision-making can be delegated to a system that cannot comprehend its actions. Decision aids must be used cautiously, being aware of their limitations.

The Future of Language Models

Despite their limitations, LLMs are continuously improving. Researchers and developers work persistently to refine these systems. It’s essential to couple these advancements with clear communication on what LLMs can and cannot do, managing expectations realistically.

Moreover, specialized models are being designed to tackle specific tasks using LLMs in tandem with other AI technologies. This hybrid approach hopes to bridge gaps and align AI outputs more closely with human-like understanding. However, genuine comprehension, similar to human-level insights, remains a challenging objective.

How We Should Use LLMs

Understanding the limitations of LLMs allows us to use them more effectively and ethically. Educating users about what AI outputs mean and maintaining human oversight in critical applications is paramount. While AI can support decision-making or automate mundane tasks, it should not replace human judgment in areas that require deep understanding or empathy.

Promoting AI literacy across all user groups ensures that people interact with technology responsibly. Ensuring transparency about AI capabilities builds user confidence and fosters healthy human-machine interactions.

While LLMs can perform many impressive tasks, recognizing their limitations helps us employ them wisely. They are tools that can mimic understanding but cannot actually comprehend in the human sense. Keeping this in mind enables us to harness their potential responsibly, avoiding misconceptions and relying on real human understanding where it truly matters.

Tags: Artificial IntelligenceLarge Language ModelsMachine Learning
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