---
title: What are AI tokens?
description: AI tokens are the units used by models to process and generate language. Growing generative and agentic AI increases token consumption, making efficiency crucial for cost, speed, and scalability. Tokenisation converts data into numerical tokens for pattern analysis and output generation. Costs vary by model size and input/output tokens, with larger models and outputs being more expensive. Languages differ in token length. Efficiency techniques include model tiering, quantisation, caching, batching, and shorter prompts. Poor efficiency raises costs, energy use, risks.
---

[Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights)

# [What are AI tokens?](https://blog.syzgroup.com/syz-ai-insights/what-are-ai-tokens)

 Written by [Almadani Hashim](https://blog.syzgroup.com/syz-ai-insights/author/almadani-hashim) | May 29, 2026, 7:27:34 AM

[View full post](https://blog.syzgroup.com/syz-ai-insights/what-are-ai-tokens)

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