AI tokens

March 9, 2026
|By Julia Schönau

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AI tokens are the smallest units of data that AI models such as ChatGPT or Claude use to process text, images, and other information. By breaking down inputs into tokens, large language models can understand language, recognize patterns, and generate appropriate responses. 

While short words are often represented as a single token, longer words are split into multiple tokens. For example, "darkness" is often split into the tokens "dark" and "ness." 

Tokens are also used for images and videos: depending on the resolution, an image can comprise between 258 and several thousand tokens, while videos are processed at a rate of around 263 tokens per second. The number of tokens determines both the processing speed and the cost of AI queries.

 

Why are AI tokens important?

Tokens form the basis for all AI-supported applications. Without tokenization, models would not be able to understand or process natural language. Tokens are relevant for companies for several reasons: They determine the costs of using AI APIs, as most providers charge per token. Tokens also influence performance: The more efficient the tokenization, the faster and cheaper the AI system works. Understanding token limits is important for planning AI agent dialogs and automation processes. 

 

AI tokens in practice

In practice, companies encounter tokens primarily when implementing AI agents such as chatbots and voicebots or AI-supported customer service solutions. A typical chatbot dialogue with 200 words corresponds to about 250-300 tokens. When processing documents, for example for automated summaries or analyses, several thousand tokens can be generated. 

The response speed also depends on tokens: The "time to first token" determines how quickly an AI agent begins to respond.

BOTfriends develops AI solutions that optimally combine token efficiency and user-friendliness. Our platform enables companies to use conversational AI in a GDPR-compliant and resource-efficient manner. From simple FAQ bots to complex multi-channel assistants connected to CRM and ERP systems.

 

Frequently Asked Questions (FAQ)

As a rule of thumb, 100 tokens correspond to approximately 60-80 German words or around 75 English words. A token comprises an average of four characters. The exact number depends on the language, word choice, and the AI model used. Tools such as the OpenAI Tokenizer help to precisely calculate the number of tokens for specific texts.

Tokens are the currency of AI processing, as they directly reflect the computational effort involved. Each token requires computing power for analysis and generation. Most AI providers charge separately for input tokens (queries) and output tokens (responses). BOTfriends helps companies minimize token usage and thus operating costs through optimized prompt design and efficient architecture.

Yes, multimodal AI models also process visual content as tokens. Images with a resolution of up to 384×384 pixels are typically counted as 258 tokens, while larger images are divided into tiles. Videos are processed at approximately 263 tokens per second, audio files at 32 tokens per second. This enables AI systems to analyze images, videos, and voice data.

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