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AI / ML
Token
The basic unit of text that LLMs process — roughly 4 characters or ¾ of a word. 'Protein powder' is 3 tokens. Matters for agent commerce because AI agents have processing budgets: product descriptions consuming fewer tokens while conveying more information are evaluated more efficiently. Concise, attribute-rich product data performs better than verbose marketing copy when parsed by AI agents.
Why it matters
It is the unit of both cost and context limit, so it is what makes a long analysis expensive and a long history impossible to carry.
In practice
Relevant when an agent forgets earlier instructions or a task gets costly. Both usually mean too much is being passed, not that the model is weak.
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