What is a Token?

A token is the basic unit of text that AI language models process. Tokens can be words, parts of words, or individual characters, depending on the model's tokenization approach. Most models break text into subword tokens for efficient processing.

When to consider Tokens?

Tokens matter when managing AI costs (often priced per token), optimizing prompt efficiency, understanding model limitations, or when working with token limits in AI applications.

When might Token limits be restrictive?

Token limits can be restrictive when processing long documents, maintaining extensive conversation history, or when prompts require significant context to produce accurate responses.

What is the importance of Tokens in AI/UX?

Understanding tokens helps optimize AI interactions, manage costs effectively, design better prompts, and create AI experiences that work within technical constraints while maximizing user value.