The Limits of Large Language Models in Corporate Information

Why ChatGPT often falls short – and specialized services like Palturai have the edge

Large language models (LLMs) such as ChatGPT impress with their ability to understand, structure, and generate complex text in seconds. They can analyze concepts, identify patterns, and communicate with remarkable fluency across virtually any topic. Yet when it comes to accurate and verifiable information about companies, these systems quickly reach their limits.

Lack of Access to Official and Structured Data

LLMs are trained on vast amounts of publicly available text — websites, books, articles, and open-licensed datasets. However, official corporate data from trade registers, government databases, or specialized business information providers is typically not included.

If a company such as DEMET Deutsche Edelmetall Recycling AG & Co. KG was dissolved years ago, it will simply not appear in the model’s training data — especially if it was never mentioned in public media or widely accessible documents. A language model only “knows” what appears in its data sources, which means that information about smaller, local, or long-defunct entities is often missing altogether.

Internet Access Is Not a Substitute for Databases

The Risk of Hallucinated Information

When LLMs lack factual data, they sometimes generate plausible-sounding but inaccurate information — a phenomenon known as hallucination. If a company is obscure or nonexistent, the model might unintentionally blend details from similarly named entities or industries. This risk is especially high in sectors with generic terms like “Edelmetall” or “Recycling.”

For this reason, AI-generated business information should never be accepted without independent verification or a clear source reference.

The Value of Specialized Data Providers

Platforms such as Palturai, North Data, Creditreform, Bisnode/Dun & Bradstreet, and the official Handelsregister or Bundesanzeiger portals provide structured, continuously updated insights into company relationships, ownership structures, and legal statuses. Unlike general-purpose AI systems, they are explicitly designed for regulated data management and compliance-driven accuracy.

Conclusion: LLMs Are Not Business Registers

ChatGPT and other large language models are powerful tools for interpreting text, recognizing patterns, and generating contextually rich explanations. But they are not substitutes for authoritative corporate data sources.

Anyone seeking to determine whether a company still exists, who controls it, or when it was dissolved should rely on official registers or specialized platforms like Palturai, which curate, validate, and interconnect factual corporate information.