TL;DR
A capability that allows large language models to output structured data formats, like JSON, indicating which external tools or APIs to run and with what arguments.
Instead of generating unstructured text, a model with function calling capabilities recognizes when a prompt requires external data or action. It leverages a provided schema of available tools to output a formatted query containing specific arguments. The surrounding application takes this structured payload, executes the program or API, and feeds the results back to the model to construct the final response.
Why this matters for your business
This mechanism connects conversational AI models to real-world corporate databases and software, turning chat-only models into active decision-making agents.
