10 Token Optimization Tips to Reduce AI Costs
Practical strategies to minimize token usage and reduce your AI API costs without sacrificing quality.
10 Token Optimization Tips to Reduce AI Costs
Smart token optimization can reduce your AI costs by 30-70% while maintaining output quality. Here are proven strategies used by successful AI applications.
Input Optimization
1. Compress Your Prompts
Remove unnecessary words, use abbreviations, and eliminate redundant instructions. Every word counts toward your token bill.
2. Use System Messages Effectively
Put reusable instructions in system messages rather than repeating them in every user message.
3. Implement Smart Context Management
Only include relevant conversation history. Summarize or truncate old messages to stay within optimal token ranges.
Output Optimization
4. Set Maximum Token Limits
Use max_tokens parameters to prevent unexpectedly long responses that increase costs.
5. Request Structured Outputs
Ask for JSON, bullet points, or other structured formats to get concise, parseable responses.
Measure your optimization impact by tracking tokens per request before and after implementing these strategies.
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