Reducing LLM Cost and Latency in Production
Practical techniques for model routing, caching, batching, context control, streaming, and measurement.
Measure before optimizing
Track request volume, tokens, model latency, retrieval latency, tool time, p50/p95 response time, and cost per successful task. Without component-level measurements, optimization becomes guesswork.
Control context size
Large prompts can increase cost and latency without improving quality. Retrieve fewer but stronger chunks, remove duplicates, summarize stable context, and avoid sending repeated instructions unnecessarily.
Model routing
Use a smaller model for classification, extraction, routing, or simple transformations and reserve larger models for tasks that need them. Routing should be evaluated on task success, not only price.
Caching and batching
Cache stable embeddings and deterministic intermediate results where safe. Batch offline embedding or evaluation workloads. Be cautious with personalized or permission-sensitive responses.
Cost-quality trade-offs
Compare changes on a fixed evaluation set. The cheapest model is not useful if it causes retries, poor answers, or manual review. Optimize for cost per successful task.
Keep learning
Apply the concepts in a small project, measure the result, document the trade-offs, and explore related TechStudio resources.
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