AI Transformation Leader Practice Questions - Microsoft Certified AI Transformation Leader (Exam AB-731) Exam

In generative AI, what is a token, and why does it matter for cost planning?

A token is the security credential used to authenticate to the model API A token is a chunk of text (often a word or part of a word) that models process, and billing is typically based on input and output tokens consumed A token is a single completed conversation, and providers charge a flat fee per conversation A token is the GPU instance reserved for a model, billed per hour regardless of usage

Correct Answer:

A token is a chunk of text (often a word or part of a word) that models process, and billing is typically based on input and output tokens consumed

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