LESSON 108 / 215·2 min readIntermediate

Batch processing, concurrency, rate limits, streaming, and fallback

Should knowConcept lesson
01 Understand02 Recall03 Prepare

Words made simple

A few useful meanings before you read the explanation.

Streaming
Sending an answer in small pieces as it is produced, rather than waiting for the complete response.
Rate limit
A cap on how many requests or tokens a service allows during a period of time.
Batching
Processing several pieces of work together. It can improve efficiency, but waiting to fill a batch can add delay.
More words from this lesson
Token
A small piece of text processed by a model. It may be a whole word, part of a word, or punctuation.
Embedding
A list of numbers that represents the meaning of some content. Similar meanings can produce nearby lists of numbers.
Agent
An application that uses a model to choose its next action within defined limits. It can use tools and continue through several steps.
Tenant
A customer or organization whose data must stay separate from other customers in a shared application.
Latency
How long a request takes to return a result. Lower latency usually means a shorter wait for the user.

Overview

  • Batch processing groups noninteractive tasks; bounded concurrency controls simultaneous requests; rate limits constrain traffic over time.
  • Streaming exposes progress earlier.
  • Fallback uses an approved alternative after eligible failures.

Why this matters

Provider quotas, long queues, and variable demand can overwhelm naive request-per-item loops.

An everyday example

Process overnight paperwork in batches while reserving staff capacity for live calls.

A technical example

Queue document embeddings with a concurrency cap and tenant quotas; return 202 plus job ID for long ingestion.

How it works

  1. Separate interactive/background traffic
  2. Enforce quota
  3. Queue work
  4. Run bounded workers
  5. Respect provider throttling
  6. Retry with jitter
  7. Apply safe degraded path.

Architecture and flow

Request → quota/admission control → live route or queue → bounded execution → result.

The insurance assistant example

Bulk policy re-indexing should not consume all provider capacity needed by customer chat.

When to use it

High volume, asynchronous tasks, and reliability requirements.

When to avoid it

Do not batch latency-sensitive interactions or retry against the same exhausted quota without backoff.

Interview answer

“I isolate traffic classes, use bounded queues and concurrency, respect quotas, and fall back only within the approved quality and privacy contract.”

Benefits, trade-offs, and production considerations

  • Cap queue age, reject overload clearly, and watch retries causing a traffic storm.
  • Streaming affects perceived latency; caching/routing/batching may reduce total work.
  • Their benefits are different.

Illustrative cost calculation: at fictional rates of $1 per million input tokens and $4 per million output tokens, 2,000 input and 300 output tokens cost $0.002 + $0.0012 = $0.0032. At 100,000 requests, that is $320 for those calls only. Add routing calls, retries, embeddings, reranking, external tools, storage, telemetry, and review. These rates are arithmetic examples, not current provider prices.

  • Use total operating cost / successful tasks as a practical efficiency measure.
  • Also report the worst-cost runs, because an unbounded agent can dominate the bill even when the average looks small.

PAUSE & RECALL

Can you explain it without the notes?

Batch processing, concurrency, rate limits, streaming, and fallback

Use your own words. Explain an example and one limitation before checking the explanation.

Check your explanation

Batch processing groups noninteractive tasks; bounded concurrency controls simultaneous requests; rate limits constrain traffic over time. Streaming exposes progress earlier. Fallback uses an approved alternative after eligible failures.

CONNECT IT TO YOUR INTERVIEW

Turn this concept into a clear answer.

Practice this concept
YOUR NEXT STEP

Keep connecting the ideas.

Next lesson: Gateways, routing, fallback, quotas, and observability

Adapted from 13_AI.MD · “Batch processing, concurrency, rate limits, streaming, and fallback”. Examples are study fragments; framework behavior can depend on your version.