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Guide

How to reduce AI token costs

AI bills grow quietly. Most of the waste comes from a few predictable places. This guide covers where token and API spend leaks and how to cut it without hurting quality.

Where the money leaks

The usual culprits: using an expensive model for simple tasks, sending more context than the task needs, repeating calls that could be cached, and workflows that call the model more often than necessary.

Match the model to the task

Route each task to the cheapest model that meets the quality bar. Reserve large models for the work that needs them. A clear routing policy is often the single biggest saving.

Trim context and cache

Send only the context the task requires. Cache stable results so you do not pay to regenerate the same answer. Small changes here add up across volume.

Fix the workflow, not just the prompt

Sometimes the cheapest move is upstream: fewer steps, better inputs, or not using AI for a step at all.

When this matters

  • Your AI bill is rising faster than the value.
  • You have no cost model for AI spend.
  • Usage is scaling and costs are scaling with it.

What to avoid

  • Cutting quality to save money instead of cutting waste.
  • Optimizing prompts while ignoring model choice and routing.
  • Adding caching without checking the results are safe to reuse.
  • Treating the bill as fixed instead of measurable.
FAQ

Common questions

Will routing hurt quality?
Not if you set a quality bar per task. The goal is to stop overpaying for work a cheaper model handles well.
Is caching always safe?
No. Cache only stable, non-sensitive results, and refresh when inputs change.
Where do I start?
Map current spend first. You cannot cut what you cannot see.

Build the right AI system before you spend on the wrong one.

If you are about to spend on AI tools, GPUs, or another pilot, talk to us first. We will look at your data, workflows, cost model, and options, and tell you straight what is worth doing.