The Art of Token Frugality in Generative AI Applications

======================================================

Introduction

Generative AI (GenAI) and agentic AI applications are transforming industries, but they come at a cost - literally. As these applications scale to thousands of users making multiple requests daily, token costs can no longer be ignored. This article explores practical methods for reducing token consumption in production GenAI and agentic AI applications.

Understand Your Token Model

Before diving into optimization techniques, it's essential to understand your token model. What is the cost of each token? Are there any free tokens available? How are tokens replenished or reused?…