Large artificial intelligence models (LAMs) are transforming wireless physical layer technologies through their robust generalization, multitask processing, and multimodal capabilities. This article reviews recent advancements in applying LAMs to physical layer communications, addressing obstacles of conventional AI-based approaches. LAM-based solutions are classified into two strategies: leveraging pre-trained LAMs and developing native LAMs designed specifically for physical layer tasks. The motivations and key frameworks of these approaches are comprehensively examined through multiple use cases. Both strategies significantly improve performance and adaptability across diverse wireless scenarios. Future research directions, including efficient architectures, interpretability, standardized datasets, and collaboration between large and small models, are proposed to advance LAM-based physical layer solutions for next-generation communication systems.