Cost optimization
Practice this questionWANT TO UNDERSTAND THE CONCEPT FIRST?Learn Cost optimization
Beginner — What determines AI cost?
- Input/output usage, model pricing, tool/search calls, embeddings, retries, and infrastructure.
- Human review and failed tasks also matter.
- I calculate total cost per completed useful task rather than only one API call.
Intermediate — When is semantic caching unsafe?
- When similar requests differ in tenant, user permissions, policy version, date, or personalized facts.
- I restrict it to suitable stable tasks and include freshness and scope dependencies; exact caches also require proper keys and invalidation.
Senior — How do you optimize without hurting quality?
- Establish a quality/security baseline, measure the expensive stages, and experiment with routing, context reduction, batching, or caching.
- Release only when held-out outcomes, tail latency, and privacy requirements remain acceptable.
Scenario — Five agent steps became fifty after a change. What happens?
- A strict step/time/token budget stops the run and reports a supported fallback.
- I inspect progress and repeated calls, compare prompt/tool changes, and track long-tail cost rather than allowing an expensive loop to continue.
Adapted from 13_AI.MD · “29.17 Cost optimization”. Code examples are study fragments. Difficulty and core labels are editorial estimates; version-specific behavior should be checked against your project.