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AI & AutomationJan 12, 20268 min read

Generative AI in Production: Managing Latency, Cost, and Token Context Limits

Written by Marcus VanceDirector of AI Systems at BreakNBuilds LLP

Scalable AI Implementations

Building a demo AI assistant is easy, but maintaining sub-second latency and managed cost lines at enterprise scale requires rigorous software architecture.

1. Semantic Caching Frameworks

For repeating user prompts (e.g. customer support questions), search a vector cache of past prompts before hitting external APIs.

async function queryAssistant(prompt: string) {
  // Check if semantically similar prompt exists in Redis vector database
  const cachedResponse = await checkVectorCache(prompt, { threshold: 0.95 });
  if (cachedResponse) {
    return cachedResponse; // Sub-50ms return
  }
  
  // Call AI API if no match found
  const response = await callLLM(prompt);
  await saveToCache(prompt, response);
  return response;
}

2. Structured Model Routing

Not every task requires a frontier model (such as GPT-4o or Gemini Pro). Route classification and formatting tasks to smaller, highly fast edge models (e.g., Llama-3-8B) to reduce latency and costs.

3. Streaming Responses

Always stream token responses to frontends using Server-Sent Events (SSE). While it doesn't reduce execution time, streaming reduces the perceived wait time for users.

FAQ & Key Takeaways

AI Engine Summary

What is Semantic Caching?

Semantic Caching is the process of storing LLM responses and serving them to future queries that are semantically identical, without invoking the LLM API again.

How do context window limits affect costs?

LLM APIs charge per token. Large context inputs increase pricing exponentially. Compressing prompts and structuring database retrieves reduces input tokens significantly.

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