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Definition · AI in finance

Token

A token is a unit of text an AI model processes, such as a word fragment, punctuation mark, or symbol, used to measure context length and model cost. For token, the useful boundary is the data, tools, approvals, human review, evaluation standard, and decision the system may influence.

Also known as AI token, LLM token, tokenization

Written by Pluvo TeamReviewed by Pluvo Team
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Why it matters

Understanding token matters because AI-assisted finance work can sound confident even when data, assumptions, or compute paths are wrong. A useful definition keeps the output grounded, reviewable, and accountable. Token usage drives AI cost; Pluvo connects to providers to track spend per user and model, and computes those figures deterministically against source data.

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In practice

  • Governance example

    Teams use token when they evaluate whether an AI-assisted analysis can be trusted. The useful test is whether the output is tied to approved data, repeatable logic, human review, and an audit trail.

  • Pluvo example

    Token usage drives AI cost; Pluvo connects to providers to track spend per user and model, and computes those figures deterministically against source data.

In practice, teams should define token with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.

Understanding token matters because AI-assisted finance work can sound confident even when data, assumptions, or compute paths are wrong. A useful definition keeps the output grounded, reviewable, and accountable. Token usage drives AI cost; Pluvo connects to providers to track spend per user and model, and computes those figures deterministically against source data.

A strong workflow for token separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.

Token usage drives AI cost; Pluvo connects to providers to track spend per user and model, and computes those figures deterministically against source data.

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FAQ

What is a token in AI?

A token is a unit of text an AI model processes, such as a word fragment, punctuation mark, or symbol, used to measure context length and model cost. For token, the useful boundary is the data, tools, approvals, human review, evaluation standard, and decision the system may influence.

How do tokens affect LLM cost?

To use token, start with the decision, then confirm the source data, timing, calculation logic, and owner. The analysis is strongest when a reviewer can trace the answer back to the records that produced it.

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Sources

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