Mauricio Tapia.
Course index

Chapter 01 / 14 · Understand and choose

How models work and where they fail

Understanding the engine helps you ask better questions and decide what to verify.

Reading: 3 min · Suggested practice: 15–25 min

By the end of this chapter

Distinguish a plausible response from a verified claim and design a task that can be checked.

In this chapter

Generating language is not querying a record

A language model learns patterns during training and generates a continuation from its input. It works with tokens, which may be words or word fragments. This basic explanation does not mean every response copies a known text or that the system reasons like a person.

It can draft, compare and organize information. It can also produce false claims in convincing language. A precise name, date or citation is not evidence by itself. Fluency describes presentation; reliability requires checking the claims.

Training, context and tools

Training provides general capabilities. Context includes instructions and the information available for a task. Tools can retrieve information or perform actions when the product provides them and permissions allow it. Asking the system to check a CRM does not connect a CRM it cannot access.

Context windows have limits that vary across models. A long conversation does not guarantee that every earlier detail remains available or is used correctly. Keep important records in an identifiable source and provide relevant information when needed.

Design for verification

Separate preparation from validation. Ask the system to extract commitments from a document and identify supporting passages; then check dates, owners and omissions. Use reproducible calculations for amounts. Without tools, require the system to state its limitation rather than simulate a query.

An instruction to avoid fabrication is useful but does not guarantee accuracy. Provide sources, inspectable output and acceptance criteria. Before sharing a commercial proposal, verify claims about capacity, price and delivery.

Worked case

In the fictional Andina Equipos case, meeting notes say: “The customer will evaluate three units and expects to confirm the budget on Friday.” A poor response turns this into a confirmed purchase. A defensible reading records three units under evaluation and a pending budget. The next action is budget confirmation, not stock reservation as though an order existed.

A small wording change can alter a business decision. The model helps identify commitments; the commercial owner verifies what was actually agreed.

Practice instructions

Read the attached notes. Extract quantities, commitments and open questions.
For each claim, cite its passage and classify: confirmed / under evaluation / no information.
Do not turn interest into an order. If you cannot read the file, say so.
Provide a table and three checks required before action.

Your turn

Use this text: “The customer wants to evaluate five machines. Engineering has not approved the configuration. The quotation expires on October 15.” Write an 80-word summary and identify two actions that are not yet justified.

Show the commented solution

There is interest in five machines, pending technical approval and an expiry date. There is no confirmed purchase or approved configuration. Do not promise delivery or mark the opportunity as won. Confirm technical validation and the decision process before the quotation expires.

Evaluate your work

  • The summary preserves the evaluation status.
  • Every detail has textual support.
  • Unknowns remain explicit.
  • Proposed actions respect confirmed information.

Sources and technical reading

Sources support technical concepts. Business cases, rubrics and practice instructions are teaching proposals developed for this course.

Before moving on

Check your exercise against the criteria. Keep sources and your changes: they will support the final project.

Editorial review: September 29, 2026 · All case examples and figures are fictional. Study times are estimates.