Agent systems can be expensive due to multiple model calls. How would you optimize for cost and latency without sacrificing quality? When would you introduce caching, batching, or model downgrades?

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Optimize by minimizing unnecessary model calls through semantic caching, model routing to cheaper models for simple tasks, and parallelizing independent steps to reduce latency. Tradeoffs would be managed by monitoring cost and latency distributions while allowing lower-cost approximations or early exits for non-critical paths.

Agent systems can be expensive due to multiple model calls. How would you optimize for cost and latency without sacrificing quality? When would you introduce caching, batching, or model downgrades?

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