In my experience this is a substantial difference in the ability to really get performance in LLM related engineering work from people who really understand how LLMs work vs people who think it's a magic box.

If your mental model of an LLM is:

> a synthetic human performing reasoning

You are severely overestimating the capabilities of these models and not realizing potential areas of failure (even if your prompt works for now in the happy case). Understanding how transformers work absolutely can help debug problems (or avoid them in the first place). People without a deep understanding of LLMs also tend to get fooled by them more frequently. When you have internalized the fact that LLMs are literally optimistized to trick you, you tend to be much more skeptical of the initial results (which results in better eval suites etc).

Then there's people who actually do AI engineering. If you're working with local/open weights models or on the inference end of things you can't just play around with an API, you have a lot more control and observability into the model and should be making use of it.

I still hold that the best test of an AI Engineer, at any level of the "AI" stack, is how well they understand speculative decoding. It involves understanding quite a bit about how LLMs work and can still be implemented on a cheap laptop.