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Economicspe-citation-104P1

Prompt caching can cut API costs by up to 50%

Up to 50% API cost reduction

Context & Methodology

When using Anthropic's prompt caching for repetitive long-context system instructions.

Applies To

claude-3-opusclaude-3-sonnet

Confidence Level

High

Implementation Effort

low

Recommendation

test

Execution Priority

P1

Put This Evidence to Work

Use the STCO framework to implement findings like this in structured, testable prompts.

A 10-turn conversation accumulates 15K context tokens, costing $0.075 per session on GPT-4; conversation summarisation r.LangChain, 'Conversation Summary Memory' documenta…