Running LLMs in Production

📖 1 min read

Cost Management

Effective prompt engineering reduces costs while improving performance.

Strategies:

  • Optimize prompt length—remove unnecessary context
  • Use appropriate model sizes for tasks (don’t use GPT-4 for simple classification)
  • Implement caching for repeated or similar queries
  • Monitor and analyze usage patterns to identify waste

Agents can be expensive due to multiple LLM calls per task.

Strategy Impact
Smaller models for simple steps Reduce cost per call
Caching Avoid redundant calls
Step limits Cap maximum cost
Batching Reduce API overhead
Cost Driver Optimization
Embedding API calls Cache embeddings, batch requests
Vector database Right-size instance, use filtering
LLM tokens Chunk size optimization, caching

Latency

Multi-step agents have inherent latency from sequential operations.

Strategy Impact
Parallelization Run independent steps concurrently
Streaming Show progress during execution
Caching Skip redundant operations
Simpler models Faster inference
Bottleneck Solutions
Embedding latency Batch processing, caching, smaller models
Vector search latency Index optimization, approximate search, filtering
LLM generation Streaming, caching common queries

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