Insights

Cost and Latency Optimization for AI Workloads

AI product economics improve through workload-aware model routing and aggressive token discipline.

Category: AI Published: 2026-02-17 Author: Prashant Sinha

Route requests by complexity

Not all tasks need the same model quality. Route simple tasks to efficient models and escalate only when confidence or complexity requires it.

Reduce avoidable token usage

  • Trim prompt context to only relevant facts.
  • Cache reusable context and deterministic responses.
  • Limit verbose output where structured output is enough.

Track cost and performance as product KPIs

  • Cost per successful task.
  • p95 latency by workflow step.
  • Quality-cost tradeoff dashboards by model route.