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Understanding Token Limits in Large Language Models: Use Cases, Techniques, Overcoming Limitations

Updated: Mar 7


The advent of Large Language Models (LLMs) like GPT-3 and GPT-4 has propelled the field of natural language processing (NLP) to new heights. These models can generate human-like text, answer questions, translate languages, and even write poetry. However, despite their capabilities, they come with certain limitations, one of the most significant being token limits. In this article, we'll delve into what these token limits are, how they affect various use cases, techniques to work around them.



Understanding Token Limits and Context Window in LLMs: A 'token' in the context of LLMs usually refers to a chunk of text that the model reads or writes at once. In English, a token can be as short as one character or as long as one word. For example, "ChatGPT is great!" is made up of six tokens: ["Chat", "G", "PT", " is", " great", "!"]. The token limit, thus, is the maximum number of tokens a model can handle in a single interaction.


OpenAI GPT-4, for instance, has a maximum token limit of 32,000 tokens and Anthropic Claude large language model (LLM) has a context window of 100,000 tokens which the company say roughly translates into 75,000 words. This means that the total number of tokens in both the input and output can't exceed this limit. If a text passage contains more than the maximum number of tokens, it needs to be truncated or otherwise reduced. This limitation has implications for the usability and application of these models.


Token Limits and Use Cases: The token limit poses challenges in different use cases. For instance:


  • Long Document Summarization: If a document has more than the allowed number of tokens, it can't be processed in one go. This can result in incomplete or contextually incorrect summaries.

  • Language Translation: For long documents, the token limit may prevent the translation of the entire text in one interaction, potentially causing loss of context or meaning.

  • Conversational AI: If a conversation has too many turns or the responses are too long, the model may need to truncate or forget earlier parts of the conversation, which can lead to loss of context and coherence.


Techniques to Overcome Token Limits: Despite these challenges, developers have come up with several techniques to work around token limits:


  • Text Truncation: The simplest approach is to truncate the text so it fits within the token limit. However, this method risks losing crucial information and context.

  • Sliding Window Approach: Here, the text is split into overlapping chunks, each within the token limit. While this allows the model to process longer texts, it may result in disjointed outputs if the chunks don't align with the text's natural segments.

  • Hierarchical Approaches: These involve processing the text at different levels of granularity. For example, a document can be split into sections, then paragraphs, then sentences, each processed separately and then reassembled. This approach requires careful handling to maintain coherence.


Overcoming Limits with Langchain and Vector Databases: New tools like Langchain and vector databases can also help overcome token limitations:


Langchain: Langchain is a tool that allows the chaining of multiple language model invocations, enabling the processing of longer texts. It works by maintaining the state of the conversation across multiple interactions, effectively bypassing the token limit. For instance, in a conversational AI application, Langchain can handle a conversation that spans many turns and thousands of tokens, maintaining context and coherence over a prolonged interaction.


Vector Databases: Vector databases are used to store, search, and manage high-dimensional vector data. In the context of LLMs, these can be used to store the state or context vectors of a language model. When a document is too long, it can be split into multiple parts. Each part is then processed separately, and the resulting state vectors are stored in the vector database. When generating a response or continuing the text, the stored vectors are retrieved to provide the necessary context. This effectively allows the handling of texts longer than the token limit in a manner that maintains context and continuity.


For example, consider a scenario where we need to summarize a long document. The document can be split into multiple sections, each within the token limit. Each section is then processed separately, and the context vector at the end of each section is stored in the vector database. When generating the summary, the stored vectors are used to provide context, enabling a coherent and contextually accurate summary despite the document exceeding the token limit.


While token limits in Large Language Models pose challenges, they are not insurmountable. Through a combination of clever techniques and innovative tools like Langchain and vector databases, developers can work around these limitations to leverage the full power of these models. However, it's important to remember that these are just workarounds, and care must be taken to ensure that the resulting outputs maintain coherence and contextual accuracy. With continued advancements in NLP technology, we can look forward to more sophisticated solutions to these challenges in the future.


Implications of Token Limits in Finance and Investing: Use Cases and Future Developments


In the world of finance and investing, large language models (LLMs) are being increasingly deployed for a variety of applications, from predicting stock trends to automating financial reports. However, the token limits inherent in these models present unique challenges and implications for their use in this sector.


Implications of Token Limits: The token limits in LLMs can restrict the amount of financial data or textual information that can be processed in a single interaction. This has implications in scenarios where comprehensive analysis of large datasets or long financial documents is required. For instance, in stock market prediction, models are often required to analyze large volumes of textual data, including news articles, financial reports, and social media posts. The token limit could potentially restrict the depth and breadth of this analysis, leading to less accurate predictions. Similarly, in the case of automated financial reporting or analysis, these models might struggle with large financial reports or lengthy earnings call transcripts, potentially resulting in incomplete or contextually incorrect summaries.


Impact on Specific Use Cases: Let's examine how token limits can affect specific applications in finance and investing:


  • Financial Forecasting: Financial forecasting often involves analyzing large amounts of historical data. If this data is presented in textual form, the token limit could restrict the amount of data the model can consider in a single interaction, potentially impacting the accuracy of the forecast.

  • Sentiment Analysis: Sentiment analysis is often used in finance to gauge market sentiment from news articles, social media, and other textual data. The token limit could potentially prevent the model from analyzing lengthy documents or large datasets in a single go, requiring the data to be split and processed in chunks. This might result in disjointed or incomplete analysis.

  • Automated Reporting: Automated generation of financial reports, regulatory filings, or earnings summaries can be impacted by token limits if the source documents exceed the token limit. This could result in truncated reports or summaries that miss important information.


Potential Future Developments


Despite these challenges, the future holds promise for the application of LLMs in finance and investing. Here are some potential future developments that could help overcome token limitations:


  • Advanced Summarization Techniques: Future developments might include more sophisticated summarization techniques that can extract the most relevant information from large financial documents or datasets, ensuring that the most important information is included within the token limit.

  • Improved Context Management: Future LLMs could feature improved context management capabilities, allowing them to maintain context across multiple interactions. This would allow large documents or datasets to be processed in chunks without losing context, effectively circumventing the token limit.

  • Integration with Quantitative Models: Future applications might see LLMs being more closely integrated with quantitative financial models. The LLMs could provide qualitative analysis and insights, which could be combined with the quantitative analysis from financial models to provide a more comprehensive view.

  • Increased Token Limits: Future versions of LLMs might feature increased token limits, allowing them to handle larger volumes of data in a single interaction. This would directly address the token limit issue, allowing for more complex and comprehensive analysis.


While token limits in LLMs present challenges for their use in finance and investing, they are not insurmountable. Through a combination of innovative techniques and future developments, we can expect these models to play an increasingly vital role in the world of finance and investing.


 

Interesting fact: Despite the token limit being a well-known constraint of Large Language Models like GPT-3 and GPT-4, it's fascinating to realize that this limit isn't an inherent feature of the model's architecture, but rather a practical limitation imposed by the computational resources available. The transformer architecture that underpins these models theoretically allows for any number of tokens. However, in practice, the amount of memory required increases quadratically with the number of tokens due to the self-attention mechanism, which means every token attends to every other token. As a result, computational resources become a limiting factor, which led to the imposition of a token limit to make the models more manageable. This also implies that as computational capabilities continue to grow, we could see future versions of these models supporting significantly larger token limits, further enhancing their capabilities and applications.

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