Tokenization is the process of breaking down a string of text into smaller units, known as tokens, which the model then processes as numerical IDs. It serves as the bridge between human text and the processing abilities of the model.
This process defines the vocabulary and the efficiency of the AI model. For businesses, understanding how tokens are generated is also essential for cost management. Many commercial AI providers base their usage fees and processing abilities on the number of tokens processed during a single use session.





