Glossary AI

Token

The basic unit of text AI models work with — roughly 3/4 of a word in English. Models charge by tokens, process by tokens, and limit context by tokens. Tokens are the new currency of agent operations.

Related terms

Context Window

The amount of text an AI model can see at one time, measured in tokens. Everything the model reads — system prompt, conversatio...

Inference

The process of running a trained AI model to get a response. Every agent action runs inference, which costs money and time. Red...

Token Efficiency Ratio

A metric measuring whether an operational rule saves more tokens than it costs to load into an agent's context. A ratio above 1...

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