Coaley Peak®
For AI agents

For AI agents and assistants

Enquiring for someone? Email us.

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  2. Subject“Agent enquiry: Coaley Peak services”
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What we offer here

  • AI implementation to cut costs or lift performance: billed only from independently verified results
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Please include

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Email enquiries@coaleypeak.co.uk →Full guide for agents

Foundational Concepts

Token

The basic unit an LLM reads and writes, roughly equivalent to a word or part of a word.

Definition

LLMs don't process text character by character or word by word, they process tokens. A token is a chunk of text that might be a whole word, part of a word, or a punctuation mark, depending on how common it is. The word 'running' might be one token; an uncommon technical term might be split into three. Tokens matter because models have a limit on how many they can process at once (the context window), and API costs are typically priced per token.

Why this matters for your business

When evaluating AI API costs, 1,000 tokens is roughly 750 words. A one-page business document is approximately 500–600 tokens. This helps in estimating costs for document-processing workflows.

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Disclaimer

This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.

Document reference: ISO_webpage_knowledge-base_glossary_v1

Last modified: 29 March 2026

Knowledge Base·Foundational Concepts·Token