Towards Optimizing the Costs of LLM Usage
Not on the map. Why?
Abstract (arXiv)
Generative AI and LLMs in particular are heavily used nowadays for various document processing tasks such as question answering and summarization. However, different LLMs come with different capabilities for different tasks as well as with different costs, tokenization, and latency. In fact, enterprises are already incurring huge costs of operating or using LLMs for their respective use cases. In this work, we propose optimizing the usage costs of LLMs by estimating their output quality (without actually invoking the LLMs), and then solving an optimization routine for the LLM selection to either keep costs under a budget, or minimize the costs, in a quality and latency aware manner. We propose a model to predict the output quality of LLMs on document processing tasks like summarization, followed by an LP rounding algorithm to optimize the selection of LLMs. We study optimization problems trading off the quality and costs, both theoretically and empirically. We further propose a sentence simplification model for reducing the number of tokens in a controlled manner. Additionally, we propose several deterministic heuristics for reducing tokens in a quality aware manner, and study the related optimization problem of applying the heuristics optimizing the quality and cost trade-off. We perform extensive empirical validation of our methods on not only enterprise datasets but also on open-source datasets, annotated by us, and show that we perform much better compared to closest baselines. Our methods reduce costs by 40%- 90% while improving quality by 4%-7%. We will release the annotated open source datasets to the community for further research and exploration.
Key facts. Cited by 33 papers in the map (data through 7 Oct 2026). Builds on 13 of its 36 references that are in the map. First posted on arXiv 29 Jan 2024.
Builds on
13 of 36 references.
References · 13
- 2023Llama 2: Open Foundation and Fine-Tuned Chat Modelscited by 12,865
- 2019BART: Denoising Sequence-to-Sequence Pre-training for Natural Language Generation, Translation, and Comprehensioncited by 5,874
- 2019BERTScore: Evaluating Text Generation with BERTcited by 5,462
- 2023FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performancecited by 791
- 2019SAMSum Corpus: A Human-annotated Dialogue Dataset for Abstractive Summarizationcited by 530
- 2019Cosmos QA: Machine Reading Comprehension with Contextual Commonsense Reasoningcited by 281
- 2020Retrieve, Program, Repeat: Complex Knowledge Base Question Answering via Alternate Meta-learningcited by 216
- 2019BIGPATENT: A Large-Scale Dataset for Abstractive and Coherent Summarizationcited by 155
- 2019Controllable Sentence Simplificationcited by 78
- 2020FrugalML: How to Use ML Prediction APIs More Accurately and Cheaplycited by 33
- 2020Natural Language Inference in Context -- Investigating Contextual Reasoning over Long Textscited by 23
- 2022Efficient Unsupervised Sentence Compression by Fine-tuning Transformers with Reinforcement Learningcited by 18
1 more
Built on by
Citing papers per year: 2024: 8; 2025: 15; 2026: 10.
33 papers.
Sort:
By area:
- 2024Concise Thoughts: Impact of Output Length on LLM Reasoning and Costcited by 108
- 2024KG-RAG: Bridging the Gap Between Knowledge and Creativitycited by 55
- 2025Optimizing Model Selection for Compound AI Systemscited by 34
- 2025Causal LLM Routing: End-to-End Regret Minimization from Observational Datacited by 27
- 2025AgenticData: An Agentic Data Analytics System for Heterogeneous Datacited by 22
- 2024Think Together and Work Better: Combining Humans' and LLMs' Think-Aloud Outcomes for Effective Text Evaluationcited by 12
- 2025Catch Me If You Can? Not Yet: LLMs Still Struggle to Imitate the Implicit Writing Styles of Everyday Authorscited by 10
- 2025SenseRAG: Constructing Environmental Knowledge Bases with Proactive Querying for LLM-Based Autonomous Drivingcited by 9
- 2024Privacy-preserved LLM Cascade via CoT-enhanced Policy Learningcited by 8
- 2025Position: Scaling LLM Agents Requires Asymptotic Analysis with LLM Primitivescited by 7
- 2025"X of Information'' Continuum: A Survey on AI-Driven Multi-dimensional Metrics for Next-Generation Networked Systemscited by 7
- 2025RedactOR: An LLM-Powered Framework for Automatic Clinical Data De-Identificationcited by 4
21 more
- 2024Foundation Models for Autonomous Robots in Unstructured Environmentscited by 3
- 2024Engineering Trustworthy AI: A Developer Guide for Empirical Risk Minimizationcited by 3
- 2025Optimizing Large Language Models: Metrics, Energy Efficiency, and Case Study Insightscited by 3
- 2025Dynamic System Instructions and Tool Exposure for Efficient Agentic LLMscited by 3
- 2026The Price Reversal Phenomenon: When Cheaper Reasoning Models Cost Morecited by 3
- 2025LegalEval-Q: A New Benchmark for The Quality Evaluation of LLM-Generated Legal Textcited by 2
- 2025FAA Framework: A Large Language Model-Based Approach for Credit Card Fraud Investigationscited by 2
- 2025eMamba: Efficient Acceleration Framework for Mamba Models in Edge Computingcited by 1
- 2025Effective and Efficient Threat Hunting with Small Language Modelscited by 1
- 2026Multi-LLM Query Optimizationcited by 1
- 2024LLMBridge: Reducing Costs to Access LLMs in a Prompt-Centric Internetcited by 0
- 2024Software Performance Engineering for Foundation Model-Powered Softwarecited by 0
- 2025Transforming Decoder-Only Transformers for Accurate WiFi-Telemetry Based Indoor Localizationcited by 0
- 2026On-Device Large Language Models for Sequential Recommendationcited by 0
- 2026From Performance to Purpose: A Sociotechnical Taxonomy for Evaluating Large Language Model Utilitycited by 0
- 2026RAGent: Physics-Aware Agentic Reasoning for Training-Free mmWave Human Activity Recognitioncited by 0
- 2026Dialogue to Discovery: Attribute-Aware Preference Elicitation for Conversational Product Search Assistantscited by 0
- 2026CAMI: Cost-Aware Agent-Guided Multi-Indexing for Semantic Retrievalcited by 0
- 2026Opti-Q: A Constraint-Based Optimization Framework for Multi-LLM Question Planningcited by 0
- 2026Online Learning with LLM Experts from Limited Feedbackcited by 0
- 2026Analyzing and Mitigating Cost-Inefficient Behaviors in Coding Agentscited by 0
- 2026Analyzing and Mitigating Cost-Inefficient Behaviors in Coding Agents25 Sep 2026
- 2026Online Learning with LLM Experts from Limited Feedback5 Sep 2026
- 2026Dialogue to Discovery: Attribute-Aware Preference Elicitation for Conversational Product Search Assistants23 Jun 2026
- 2026Opti-Q: A Constraint-Based Optimization Framework for Multi-LLM Question Planning17 Jun 2026
- 2026CAMI: Cost-Aware Agent-Guided Multi-Indexing for Semantic Retrieval14 Jun 2026
- 2026RAGent: Physics-Aware Agentic Reasoning for Training-Free mmWave Human Activity Recognition29 Mar 2026
- 2026The Price Reversal Phenomenon: When Cheaper Reasoning Models Cost More25 Mar 2026
- 2026Multi-LLM Query Optimization24 Mar 2026
- 2026From Performance to Purpose: A Sociotechnical Taxonomy for Evaluating Large Language Model Utility24 Feb 2026
- 2026On-Device Large Language Models for Sequential Recommendation14 Jan 2026
- 2025Effective and Efficient Threat Hunting with Small Language Models7 Dec 2025
- 2025Dynamic System Instructions and Tool Exposure for Efficient Agentic LLMs1 Dec 2025
21 more
- 2025Catch Me If You Can? Not Yet: LLMs Still Struggle to Imitate the Implicit Writing Styles of Everyday Authors18 Sep 2025
- 2025eMamba: Efficient Acceleration Framework for Mamba Models in Edge Computing14 Aug 2025
- 2025AgenticData: An Agentic Data Analytics System for Heterogeneous Data7 Aug 2025
- 2025"X of Information'' Continuum: A Survey on AI-Driven Multi-dimensional Metrics for Next-Generation Networked Systems25 Jul 2025
- 2025FAA Framework: A Large Language Model-Based Approach for Credit Card Fraud Investigations13 Jun 2025
- 2025LegalEval-Q: A New Benchmark for The Quality Evaluation of LLM-Generated Legal Text30 May 2025
- 2025RedactOR: An LLM-Powered Framework for Automatic Clinical Data De-Identification23 May 2025
- 2025Causal LLM Routing: End-to-End Regret Minimization from Observational Data21 May 2025
- 2025Transforming Decoder-Only Transformers for Accurate WiFi-Telemetry Based Indoor Localization16 May 2025
- 2025Optimizing Large Language Models: Metrics, Energy Efficiency, and Case Study Insights7 Apr 2025
- 2025Optimizing Model Selection for Compound AI Systems20 Feb 2025
- 2025Position: Scaling LLM Agents Requires Asymptotic Analysis with LLM Primitives4 Feb 2025
- 2025SenseRAG: Constructing Environmental Knowledge Bases with Proactive Querying for LLM-Based Autonomous Driving7 Jan 2025
- 2024Software Performance Engineering for Foundation Model-Powered Software14 Nov 2024
- 2024Engineering Trustworthy AI: A Developer Guide for Empirical Risk Minimization25 Oct 2024
- 2024Privacy-preserved LLM Cascade via CoT-enhanced Policy Learning10 Oct 2024
- 2024LLMBridge: Reducing Costs to Access LLMs in a Prompt-Centric Internet4 Oct 2024
- 2024Think Together and Work Better: Combining Humans' and LLMs' Think-Aloud Outcomes for Effective Text Evaluation11 Sep 2024
- 2024Concise Thoughts: Impact of Output Length on LLM Reasoning and Cost29 Jul 2024
- 2024Foundation Models for Autonomous Robots in Unstructured Environments19 Jul 2024
- 2024KG-RAG: Bridging the Gap Between Knowledge and Creativity20 May 2024
- 2024Concise Thoughts: Impact of Output Length on LLM Reasoning and Costcited by 108
- 2024Think Together and Work Better: Combining Humans' and LLMs' Think-Aloud Outcomes for Effective Text Evaluationcited by 12
- 2025SenseRAG: Constructing Environmental Knowledge Bases with Proactive Querying for LLM-Based Autonomous Drivingcited by 9
- 2026The Price Reversal Phenomenon: When Cheaper Reasoning Models Cost Morecited by 3
- 2026RAGent: Physics-Aware Agentic Reasoning for Training-Free mmWave Human Activity Recognitioncited by 0
- 2026RAGent: Physics-Aware Agentic Reasoning for Training-Free mmWave Human Activity Recognition29 Mar 2026
- 2026The Price Reversal Phenomenon: When Cheaper Reasoning Models Cost More25 Mar 2026
- 2025SenseRAG: Constructing Environmental Knowledge Bases with Proactive Querying for LLM-Based Autonomous Driving7 Jan 2025
- 2024Think Together and Work Better: Combining Humans' and LLMs' Think-Aloud Outcomes for Effective Text Evaluation11 Sep 2024
- 2024Concise Thoughts: Impact of Output Length on LLM Reasoning and Cost29 Jul 2024
- 2025AgenticData: An Agentic Data Analytics System for Heterogeneous Datacited by 22
- 2025Position: Scaling LLM Agents Requires Asymptotic Analysis with LLM Primitivescited by 7
- 2025Dynamic System Instructions and Tool Exposure for Efficient Agentic LLMscited by 3
- 2026Analyzing and Mitigating Cost-Inefficient Behaviors in Coding Agentscited by 0
- 2026Analyzing and Mitigating Cost-Inefficient Behaviors in Coding Agents25 Sep 2026
- 2025Dynamic System Instructions and Tool Exposure for Efficient Agentic LLMs1 Dec 2025
- 2025AgenticData: An Agentic Data Analytics System for Heterogeneous Data7 Aug 2025
- 2025Position: Scaling LLM Agents Requires Asymptotic Analysis with LLM Primitives4 Feb 2025
- 2024KG-RAG: Bridging the Gap Between Knowledge and Creativitycited by 55
- 2024KG-RAG: Bridging the Gap Between Knowledge and Creativity20 May 2024
- 2025Optimizing Model Selection for Compound AI Systemscited by 34
- 2025Causal LLM Routing: End-to-End Regret Minimization from Observational Datacited by 27
- 2025Catch Me If You Can? Not Yet: LLMs Still Struggle to Imitate the Implicit Writing Styles of Everyday Authorscited by 10
- 2024Privacy-preserved LLM Cascade via CoT-enhanced Policy Learningcited by 8
- 2025"X of Information'' Continuum: A Survey on AI-Driven Multi-dimensional Metrics for Next-Generation Networked Systemscited by 7
- 2025RedactOR: An LLM-Powered Framework for Automatic Clinical Data De-Identificationcited by 4
- 2024Foundation Models for Autonomous Robots in Unstructured Environmentscited by 3
- 2024Engineering Trustworthy AI: A Developer Guide for Empirical Risk Minimizationcited by 3
- 2025Optimizing Large Language Models: Metrics, Energy Efficiency, and Case Study Insightscited by 3
- 2025LegalEval-Q: A New Benchmark for The Quality Evaluation of LLM-Generated Legal Textcited by 2
- 2025FAA Framework: A Large Language Model-Based Approach for Credit Card Fraud Investigationscited by 2
- 2025Effective and Efficient Threat Hunting with Small Language Modelscited by 1
12 most cited of 22 All 22 (JSON)
- 2026Online Learning with LLM Experts from Limited Feedback5 Sep 2026
- 2026Dialogue to Discovery: Attribute-Aware Preference Elicitation for Conversational Product Search Assistants23 Jun 2026
- 2026Opti-Q: A Constraint-Based Optimization Framework for Multi-LLM Question Planning17 Jun 2026
- 2026CAMI: Cost-Aware Agent-Guided Multi-Indexing for Semantic Retrieval14 Jun 2026
- 2026Multi-LLM Query Optimization24 Mar 2026
- 2026From Performance to Purpose: A Sociotechnical Taxonomy for Evaluating Large Language Model Utility24 Feb 2026
- 2026On-Device Large Language Models for Sequential Recommendation14 Jan 2026
- 2025Effective and Efficient Threat Hunting with Small Language Models7 Dec 2025
- 2025Catch Me If You Can? Not Yet: LLMs Still Struggle to Imitate the Implicit Writing Styles of Everyday Authors18 Sep 2025
- 2025"X of Information'' Continuum: A Survey on AI-Driven Multi-dimensional Metrics for Next-Generation Networked Systems25 Jul 2025
- 2025FAA Framework: A Large Language Model-Based Approach for Credit Card Fraud Investigations13 Jun 2025
- 2025LegalEval-Q: A New Benchmark for The Quality Evaluation of LLM-Generated Legal Text30 May 2025
12 newest of 22 All 22 (JSON)