Generative AI & LLMs
Token
The small chunks of text (roughly ¾ of a word) that language models read and write. Usage and pricing are measured in tokens.
Why it matters for your business
Your AI bill is essentially a token meter. Understanding tokens helps you estimate and control costs.
In practice
A token is roughly ¾ of a word; a 500-word email is about 650 tokens, and you're billed by the token.