•1 min read•from Analytics Vidhya
Token Economics: Why AI is Getting “Cheaper”
Our take
In recent years, the perception of AI costs has shifted dramatically, transforming from a daunting expense to a nearly invisible one. This change is not merely a result of vague technological improvements; rather, it stems from specific advancements in token economics and how AI models are utilized. Understanding these shifts can empower users to leverage AI more effectively, enhancing productivity without the burden of excessive costs.

A year or two ago, using advanced AI models felt expensive enough that you had to think twice before asking anything. Today, using those same models feels cheap enough that you don’t even notice the cost. This isn’t just because “technology improved” in a vague sense. There are specific reasons behind it, and it comes […]
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