How do you reduce LLM token costs for enterprise AI?

Reduce LLM token costs by sending the model less but more relevant context, using structured, connected data instead of long document dumps, caching repeated prompts and results, routing simple tasks to smaller models, trimming instructions and conversation history, limiting agent loops, and monitoring token use per workflow so you can fix the most expensive ones.

Tactics

TacticEffect
Better retrievalFewer irrelevant tokens
Structured dataCompact facts vs long documents
Prompt cachingReuse common prefixes
Model routingSmall models for easy tasks
History summarizationShorter context in long chats
Loop limitsStops runaway agents
Usage dashboardsFind costly workflows

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