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token budget
also LLM token budget or AI token budget
Definition of token budget
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: an allowance or limit on the number of tokens an AI system may process or generate during a response, reasoning process, agent task, or accounting period
- The research agent exhausted its token budget before it reached the verification step.
- The team reserved part of the workflow's token budget for retries and final review.
Two meanings, one word
In everyday English
A budget is an allowance or limit for how much of a resource may be used.
In AI
An allowance or limit on the number of tokens an AI system may process or generate during a response, reasoning process, agent task, or accounting period.
Origin & history
Budget has long been used in computing for limited resources. In language-model systems, token budget became a common way to describe limits on context, output, reasoning, or total workflow usage as token-based pricing and long-running agents made consumption directly measurable.
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Cite this entry
"Token budget." AI Dictionary, Dadgogo, https://dadgogo.com/dictionary/token-budget/. Accessed 12 Oct. 2026.