LLMs aren’t limited to AI and related fields! They’re powering almost every tech, and thereby is one of the most asked about topics in interviews. This makes it essential to have a surface level familiarity of the technology.
This article is designed to mirror how LLMs show up in real interviews. We’ll start from first principles and build forward, so even if you’re new to the topic, you’ll be able to follow the logic behind each answer instead of memorizing jargon.
We’ll start by providing 10 interview questions that challenge the fundamentals of LLMs. Then we’d move on to more nuanced questions.
The most frequently asked questions on LLMs asked in an interview.
A. An LLM is a machine learning model trained on vast text to generate and interpret human language.
What that means is
Note: The interviewers want clarity, not a textbook definition. If you won’t add your own experience of using LLMs in this response, it might sound robotic.
A. LLMs behave like highly advanced systems for predicting the next token in a sequence. At each step, the model calculates probabilities over all possible next tokens based on the context so far.
By repeating this process many times, longer and seemingly coherent responses emerge, even though the model is only making local, step-by-step predictions.

What happens during generation
Note: There’s no understanding, only statistical continuation. This is why models are often described as emotionless. They generate words without intent, so the responses can feel mechanical.
A. Earlier NLP models struggled to retain meaning across long sequences of text. Transformers allowed for usage of attention mechanisms, which focused on specific parts of the text — over the entirety of it — based on its weightage in the context of the overall text.
What transformers changed:
This resulted in better context handling + massive scalability.
A. LLMs learn by predicting the next word again and again across massive amounts of text.
It consists of three stages:
The training is done in a probabilistic manner. Meaning the performance gains are measures in terms of loss%.
A. Attention allows the model to focus selectively on the most relevant parts of input.

Why it matters:
As every “so, like..” might not be contributing to the overall text. Without attention, performance collapses on complex language tasks.
A. Despite their capabilities, LLMs suffer from hallucinations, bias, and high operational costs.
LLMs optimize for likelihood, not truth. As mentioned previously, models lack an understanding of data. So the model generates text based on which words are most likely, even when they are wrong.
A. LLMs are used wherever language-heavy work can be automated or assisted. Newer models are capable of assisting in non-language work data as well.
Make sure to include the common applications only. Extracting text, creating ghibli images etc. aren’t common enough and can be classified in one of the previous categories.
Good signal to add: Tie examples to the company’s domain.
A. Fine-tuning adjusts a general-purpose LLM to behave better for specific tasks. It’s like having a piece of clothing closely fitted to a particular measurement.
Why it matters:
Why is it needed? Because most use cases are specific. A fin-tech might not require the coding-expertise features that comes along with a model. Finetuning assures that a model that was generic initially, gets tailored to a specific use case.

A. LLMs introduce ethical challenges that scale as quickly as their adoption. Some of the risks are:
Ethics go beyond philosophy. When people deploy LLMs at scale, mistakes can cause catastrophic disruption. Therefore, it is essential to have guardrails in place to mitigate that from happening. AI governance is the way to go.
A. Evaluation starts with measurable system-level performance indicators. The growth (or reduction in some cases) determines how well the model is performing. People evaluate LLMs using metrics like:
To evaluate an LLM’s quality qualitatively, people use the following metrics:
Combine automatic metrics with human evaluation.
At this point, you should have a clear mental model of what an LLM is, how it works, and why it behaves the way it does. That’s the foundation most candidates stop at.
But interviews don’t.
Once you’ve shown you understand the mechanics, interviewers start probing something deeper: how these models behave in real systems. They want to know whether you can reason about reliability, limitations, trade-offs, and failure modes.
The next set of questions are here to assist with that!
A. Temperature controls how much randomness an LLM allows when choosing the next token. This directly influences whether outputs stay conservative and predictable or become diverse and creative.
For temperature the rule of thumb is as follows:
Temperature tunes style, not correctness. It determines how much emphasis should be given towards a problem.

A. Top-p sampling limits token selection to the smallest set whose cumulative probability exceeds a threshold, allowing the model to adaptively balance coherence and diversity instead of relying on a fixed cutoff.
Why teams prefer it
It controls which options are considered, not how many.

A. Embeddings convert text into dense numerical vectors that capture semantic meaning, allowing systems to compare, search, and retrieve information based on meaning rather than exact wording.
What embeddings enable
They let machines work with meaning mathematically.
A. A vector database stores embeddings and supports fast similarity search, making it possible to retrieve the most relevant context and feed it to an LLM during inference.
Why this matters
This turns LLMs from guessers into grounded responders.

A. Prompt injection occurs when user input manipulates the model into ignoring original instructions, potentially leading to unsafe outputs, data leakage, or unintended actions.
Typical risks
LLMs follow patterns, not authority. It’s like altering the hardwired protocols that were set in stone for an LLM.
A. LLM outputs vary because generation relies on probabilistic sampling rather than fixed rules, meaning the same input can produce multiple valid responses.
Key contributors
It’s not a definite set of steps that are followed that leads to a conclusion. On the flipside, its a path to a destination, which can vary.
Quick comparison
| Concept | What it controls | Why it matters |
| Temperature | Randomness of token choice | Affects creativity vs stability |
| Top-p | Token selection pool | Prevents low-quality outputs |
| Embeddings | Semantic representation | Enables meaning-based retrieval |
| Vector DB | Context retrieval | Grounds responses in data |
A. Quantization reduces model size and inference cost by lowering numerical precision of weights, trading small accuracy losses for significant efficiency gains.
Why teams use it
It optimizes feasibility, not intelligence.
A. RAG is a technique where an LLM pulls information from an external knowledge source before generating an answer, instead of relying only on what it learned during training.
What actually happens
Why it matters
Once LLMs are trained, they can’t be updated. RAG gives them access to live, private, or domain-specific knowledge without retraining the model. This is how chatbots answer questions about company policies, product catalogs, or internal documents without hallucinating.
A. Both aim to shape model behavior, but they work at different levels.
| Aspect | Prompt Engineering | Fine-tuning |
| What it changes | What you ask the model | How the model behaves internally |
| When it happens | At runtime | During training |
| Cost | Cheap | More expensive |
| Speed to apply | Fast | Slow |
| Stability | Breaks easily when prompts get complex | Much more stable |
| Best used when | You need quick control over one task | You need consistent behavior across many tasks |
What this really means: If you want the model to follow rules, style, or tone more reliably, you fine-tune. If you want to guide one specific response, you prompt. Most real systems use both.
A. Hallucinations happen because LLMs aim to produce the most likely continuation of text, not the most accurate one.
Why it occurs
If the model does not know the answer, it still has to say something. So it guesses in a way that looks plausible. That is why systems that use retrieval, citations, or external tools are much more reliable than standalone chatbots.
Large language models can feel intimidating at first, but most interviews don’t test depth. They test clarity. Understanding the basics, how LLMs work, where people use them, and where they fall short often gives you enough to respond thoughtfully and confidently. With these common questions, the goal isn’t to sound technical. It’s to sound informed.