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Tacit knowledge in large language models

delete2025-11-01
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OA
AI
J
Janna Lu *
DOI:10.1007/s11138-025-00710-5delete
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Abstract

Abstract

En 中文
Recent debates about large language models (LLMs) question whether these systems merely reproduce training data or demonstrate genuine understanding. This paper challenges the stochastic parrot critique and argues that LLMs possess tacit knowledge, broadly defined as knowledge that is difficult or impossible to articulate explicitly. Tacit knowledge, however, has several features. LLMs exhibit two of the three forms of tacit knowledge: 1) knowledge that could theoretically be codified but is too costly to translate into explicit information, and 2) knowledge of nuance and subtext encoded in language, but not 3) embodied knowledge gained through sensory experience. These models learn latent information and unspoken rules from their training corpus, developing mental models that let them generalize to novel situations. However, LLMs still remain subject to Hayekian constraints of dispersed knowledge and bounded rationality.
Keywords:
Austrian economics
Technological change
B53
O33

Journal

R
REVIEW OF AUSTRIAN ECONOMICS
IF:
0.4
Papers:
37
Citations:
0

Organization

G
George Mason University
Scholars:
7.7K
Papers: 7.9K
Citations: 1.0W