Paul Richardson's Podcast

LLM Tokens: A Marketing Professional's Guide

Paul Richardson

This podcast explains that tokens are fundamental units of text that large language models process, impacting cost and performance when using AI tools. It details how token counts determine API charges for both input and output, emphasizing the need for efficient prompt design. Furthermore, the document clarifies that tokens are converted into embeddings, which are numerical representations of meaning used for semantic understanding and various marketing applications. The text also discusses context windows, which limit the amount of tokens a model can handle at once, and how tokenization can affect the interpretation of language nuances. Ultimately, understanding tokens is presented as crucial for marketers to optimize AI usage, control expenses, and effectively leverage language models.