Editor's Note
Chat GPT Agents just dropped. We will dive into this powerful tool next week. If you have the Pro version, you should now have access. Each user receives approximately 5-15 tokens per week, so I wanted to break down, in plain English, what tokens are.
Will see you next week!
-David
WTH is a Token? The Real Reason AI Stops Working Mid-Task
Confused about “tokens” when using AI tools? Here’s what they are (and why you run out of them).
Let’s break it down, “David simple-style” …
There are two main types of tokens in AI land:
Text tokens = Words (kinda).
Most tools, like ChatGPT, charge based on the amount of text you type and the amount of text it generates in response. These “tokens” are fragments of words. Example: “marketing” = 2 tokens. Every conversation uses them, but you don’t feel it unless you’re generating massive outputs.
Action tokens = Execution power
This is where things get juicy. Some tools (like ChatGPT’s agents) give you a limited number of action tokens. These are what let AI do stuff for you … like read your email, search your calendar, or update your CRM.
Think of them like little permission slips:
“Hey AI, go read my last 20 unread emails” ✅ = 1 token
“Schedule a meeting with my team and send invites” ✅ = 1 token
“Organize my Google Drive into folders based on file type” ✅ = another token
And yes, you only get a few if you're using Pro plans right now. Why? Because:
These actions involve real-world data (so it’s risky).
Each one is a live API call, i.e., real costs on the backend.
It’s still early days for agents.
But the future? Full-on AI-powered executive assistant energy.
Excited for what the future brings!
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