AI Chatbot Glossary
What Is Token?
A token is the basic unit of text an AI language model processes — roughly a word or sub-word. Token counts affect API costs and the max conversation length a model can handle.
Definition
The basic unit of text that AI language models process. A token can be a word, part of a word, or a punctuation mark. For example, "chatbot" is one token, while "AI-powered" might be three. Token counts affect API costs and the maximum conversation length a model can handle.
Why Token Matters for AI Chatbots
You care about tokens because they drive your cost. A chatbot running on a $0.01/1K-token model serving 10,000 conversations/month at 800 tokens per conversation costs $80/month in model fees. Chatonbo bundles tokens into flat pricing so you do not have to reason about it directly.
Related Terms
Large Language Model (LLM)
An LLM is an AI model trained on vast amounts of text that can understand and generate human language — LLMs like GPT-5.4, Claude, and Gemini power modern chatbots.
API (Application Programming Interface)
An API is a set of protocols that lets different software applications exchange data. In chatbots, APIs connect the bot to CRMs, e-commerce platforms, and helpdesks so conversations trigger real-world actions.
Response Time
Response time is how long a chatbot takes to reply — typically 1–5 seconds for AI chatbots, much faster than human agents, which lifts customer satisfaction and engagement.
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