What are AI tokens?
MARCH 24, 2025
4 MIN READ
AI tokens are the base units of text that these models use to understand language. Let’s say you’ve asked Copilot to find some nice vacation spots on the coast this summer. In just a few seconds, it responds with a list of ideal places, perfect for your family getaway. How does Copilot understand your prompt and know how to respond? The answer is, in a word, tokens. In this article, we’ll discuss how Copilot and other AI models use tokens to break down input, generate responses, and more to make your conversations as smooth and realistic as possible.
AI tokens: The building blocks of natural language processing
Tokens are the fundamental units of text that AI models use to understand and process language. In natural language processing (NLP), tokens can be words or phrases. By breaking down text into these smaller units, Copilot and other AI models can more effectively analyze language and generate responses.
How does tokenization work?
Tokenization is the process of converting a string of text into tokens, or the blocks that make up a sentence. This involves splitting the text based on spaces, punctuation, and other delimiters. Just like you might split an orange into sections to eat, an AI model like Copilot breaks down larger sentences into smaller pieces that it can digest. For example, the sentence "I like coffee" would be tokenized into ["I", "like", "coffee"], and the sentence “Find coffee shops near me” would be tokenized into [“Find”, “coffee” “shops”, “near”, “me”].
By breaking down larger input into smaller blocks, Microsoft Copilot can then process each token and understand what is being asked of it. Once it understands the input, the model can then respond appropriately, so your query about nearby coffee shops will be returned with a list of cafes and shops that fit your prompt.
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Tokenization in practice
In practice, tokenization plays a crucial role in various AI applications, including text generation, language translation, and sentiment analysis.
Text generation
Copilot and other AI models use tokens to create coherent and contextually relevant sentences. For instance, if you ask the model, “Find online recipes for orange chicken,” it will tokenize the query into [“Find”, “online”, “recipes”, “for”, “orange”, “chicken”], which allows it to understand that you want online orange chicken recipes. Based on this context, the AI model can respond appropriately with links to your desired recipes.
Language translation
Tokenization helps break down sentences into manageable units, even down to the character, allowing AI models to accurately translate each part. If you want to translate the sentence “I walked to the store” from English to Spanish, Copilot would tokenize it to [“I’, “walked”, “to”, “the”, “store”], and then translate each token, giving you the translated sentence “Yo caminé a la tienda.” Whether you’re studying for a German exam or want to brush up on your French before a trip, you can ask Copilot to translate sentences from English into your target language and vice versa.
Sentiment analysis
When it comes to businesses seeking insight on how their product is received by customers, product reviews are essential, and sentiment analysis AI systems help businesses see how they’re doing. By breaking down product review text into tokens, the AI can better understand the sentiment behind the text, whether it's positive, negative, or neutral. For example, the sentence “This product is cute, but the sizing is not accurate, and I had to return it for a different size” would be tokenized into [“This”, “product”, “is”, “cute”, “,” “but”, “the”, “sizing”, “is”, “not”, “accurate”, “,”, “and”, “I”, “had”, “to”, “return”, “it”, “for”, “a”, “different”, “size”]. The tokens “cute” and “not accurate” can then be processed by the sentiment model to assign mixed sentiment labels for the business.
The future of tokens in AI
As AI models continue to evolve, tokenization will play a critical role in improving the quality and relevance of generated text. These advancements will have a significant impact on AI-driven tools and applications, making them more efficient and effective. For instance, improved tokenization techniques could lead to better language translation, more accurate sentiment analysis, and more coherent text generation.
The building blocks of AI
From text generation to language translation to sentiment analysis, tokenization plays a huge role in how AI models interact with their users. Because of these building blocks, you can hold a consistent conversation with Copilot, and Copilot can offer more context-aware and relevant responses to your queries. Try Copilot today and open up a world of possibilities.
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