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Collecting thumbs-up/down on 10% of outputs generates enough signal to improve prompt quality by 15% per month via syste.Anthropic, 'Feedback and Evaluation' best practice…

Cost Optimisation14 May 20269 min readThe AI Prompt Architect Team

Cut Your LLM API Costs by 60% with These Prompt Optimisation Techniques

Reduce LLM API Costs by 60%: Prompt Optimisation Techniques

Why Prompt Length Matters

Every token costs money. A 2,000-token system prompt costs roughly $0.06 per GPT-4o call. At 10,000 calls/day, that is $600/day just for the system prompt.

Technique 1: Token Compression

Remove filler words, redundant instructions, and verbose formatting without losing meaning.

Before (847 tokens):

Please make sure that you always respond in a helpful and professional manner...

After (312 tokens):

Respond professionally. Be concise.

Technique 2: Model Routing

Use cheaper models for simple tasks:

  • GPT-4o Mini for classification and extraction
  • GPT-4o for complex reasoning
  • Claude Haiku for summarisation

Technique 3: Prompt Caching

Cache system prompts with Anthropic's prompt caching or OpenAI's assistant API to avoid re-processing.

Technique 4: Output Constraints

Specify max tokens and structured output formats to prevent verbose responses.

Real Results

Teams using AI Prompt Architect's cost analyser report 40-65% reduction in monthly API spend.

LLM costsAPI coststoken optimisationprompt optimisationcost reduction

The AI Prompt Architect Team

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