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Token Usage Optimization: Best Practices

Reduce costs and improve performance with these proven optimization strategies

Dr. Emily Watson
Dr. Emily Watson
AI Performance Engineer
August 10, 20248 min read
Token Usage Optimization: Best Practices

Token usage directly impacts both performance and cost in AI applications. Through analysis of thousands of workflows on our platform, we've identified key optimization patterns that can reduce token consumption by 40-60% while maintaining or improving output quality.

Understanding Token Consumption Patterns

Not all AI operations consume tokens equally. Here's how different workflow components impact your usage:

Operation TypeAvg TokensOptimization PotentialBest Practice
Simple Classification25-50LowUse smaller models
Text Generation100-300HighImplement caching
Data Transformation50-150MediumBatch requests
Complex Analysis200-500Very HighMulti-stage processing

Caching Strategies

Implement intelligent caching to avoid re-processing identical or similar inputs. Our built-in caching system can automatically identify similar requests and return cached results, reducing token usage by up to 40% for typical workflows.

json
{
  "cacheConfig": {
    "enabled": true,
    "ttl": 3600,
    "similarityThreshold": 0.85,
    "keyFields": ["input", "options.temperature"]
  }
}

Batching and Parallel Processing

For high-volume applications, batching requests can significantly improve efficiency. Process multiple inputs together when possible, and use parallel processing for independent operations.

Performance Benchmarks

We tested these optimization strategies across different workflow types:

Workflow TypeBefore (tokens/req)After (tokens/req)Reduction
Content Classification452838%
Text Summarization28016541%
Data Analysis42019055%
Multi-step Processing68029057%

These optimizations not only reduce costs but often improve response times through better resource utilization and reduced model load.