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KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

Start » Tokenisation (Glossary)
11 October 2024

Tokenisation (Glossary)

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The term tokenisation is primarily found in the fields of artificial intelligence, big data and smart data, as well as cybercrime and cybersecurity.

Tokenisation means that large amounts of data, such as texts or sensitive information, are broken down or converted into smaller units – known as tokens. In artificial intelligence, tokenisation helps computers to better understand language or text by dividing words, sentences, or even individual characters into manageable parts. This facilitates, for example, automatic translations or chatbots.

In the cybersecurity field, tokenisation protects sensitive data such as credit card numbers by replacing them with a „token“. A token is a type of placeholder: should someone intercept the data, only the useless token will be visible, not the real information.

A clear example: you enter your credit card number when shopping online. The system replaces the actual number with a random code (token). Payment is made later with the token, and the actual credit card number remains securely hidden. Tokenisation thus ensures greater data protection and better data processing in digital applications.

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