The critical threat of phishing emails has been further exacerbated by the potential of LLMs to generate highly targeted, personalized, and automated spear phishing attacks. Two critical problems concerning LLM-facilitated phishing require further investigation: 1) Existing studies on lateral phishing lack specific examination of LLM integration for large-scale attacks targeting the entire organization, and 2) Current anti-phishing infrastructure, despite its extensive development, lacks the capability to prevent LLM-generated attacks, potentially impacting both employees and IT security incident management. However, the execution of such investigative studies necessitates a real-world environment, one that functions during regular business operations and mirrors the complexity of a large organizational infrastructure. This setting must also offer the flexibility required to facilitate a diverse array of experimental conditions, particularly the incorporation of phishing emails crafted by LLMs. This study is a pioneering exploration into the use of Large Language Models (LLMs) for the creation of targeted lateral phishing emails, targeting a large tier 1 university's operation and workforce of approximately 9,000 individuals over an 11-month period. It also evaluates the capability of email filtering infrastructure to detect such LLM-generated phishing attempts, providing insights into their effectiveness and identifying potential areas for improvement. Based on our findings, we propose machine learning-based detection techniques for such emails to detect LLM-generated phishing emails that were missed by the existing infrastructure, with an F1-score of 98.96.