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AI Bootcamp (Lesson 1): How LLMs Work, and How to Defend Against Hallucinations

Part of the Latticework AI Bootcamp for non-technical investors. In this lesson: Two summaries of a real filing, plus your personal "always verify" checklist.

Join the Latticework AI Bootcamp and progress at your own pace. Participation is open to members and paid subscribers.

A note before we begin: This is the first lesson in a 16-lesson self-paced course. I did every lesson on the same tools, with the same constraints, that you will use. Some lessons will land cleanly. Some will lead to dead ends and need rework.

Let’s launch into our first lesson.

We start with one of the most important insights in the entire bootcamp: learning when an AI model is being fluent versus when it is being right.

Every limit or hallucination in your future idea engine traces back to how large language models (LLMs) read and write text. If we understand tokens and context windows, we avoid the most expensive mistakes. If we do not, confident-sounding fabrications about earnings, ratios, quoted language, or filing dates can quietly corrupt an investment thesis.

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