In the realm of Artificial Intelligence, Large Language Models (LLMs) have recently emerged as a new technology, rapidly gaining prominence across various domains due to their impressive capabilities. This paper investigates key concepts, potentials and obstacles associated with integrating LLMs into the product development process. The initial focus lies on clarifying the underlying mechanisms and capabilities of LLMs to provide a clear and practical understanding. Building upon this foundation, the exploration shifts to the potential applications of LLMs in product development. An assessment matrix evaluates the capabilities of LLMs with regards to engineering challenges, highlighting how these models could potentially improve key aspects of the development process. Additionally, the obstacles associated with implementation in a product development context are addressed.