Tokens

The fundamental units of text processing in AI language models, representing individual words, parts of words, or characters that models use to understand and generate language. Token limits determine how much text AI systems can process in a single interaction, affecting conversation length, document analysis capacity, and output generation capabilities. For businesses using AI language tools, understanding tokens helps optimise system usage, manage costs (as many AI services charge per token), and structure interactions effectively. Token awareness enables organisations to maximise AI value whilst controlling expenses and ensuring AI systems can handle required business communication lengths.