mlsanityData to 7 Oct 2026

Towards Optimizing the Costs of LLM Usage

arXiv 2402.01742 ↗First posted 29 Jan 2024cs.CL cs.AI cs.LGcited by 33

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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

  1. 2023Llama 2: Open Foundation and Fine-Tuned Chat Modelscited by 12,865
  2. 2019BART: Denoising Sequence-to-Sequence Pre-training for Natural Language Generation, Translation, and Comprehensioncited by 5,874
  3. 2019BERTScore: Evaluating Text Generation with BERTcited by 5,462
  4. 2023FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performancecited by 791
  5. 2019SAMSum Corpus: A Human-annotated Dialogue Dataset for Abstractive Summarizationcited by 530
  6. 2019Cosmos QA: Machine Reading Comprehension with Contextual Commonsense Reasoningcited by 281
  7. 2020Retrieve, Program, Repeat: Complex Knowledge Base Question Answering via Alternate Meta-learningcited by 216
  8. 2019BIGPATENT: A Large-Scale Dataset for Abstractive and Coherent Summarizationcited by 155
  9. 2019Controllable Sentence Simplificationcited by 78
  10. 2020FrugalML: How to Use ML Prediction APIs More Accurately and Cheaplycited by 33
  11. 2020Natural Language Inference in Context -- Investigating Contextual Reasoning over Long Textscited by 23
  12. 2022Efficient Unsupervised Sentence Compression by Fine-tuning Transformers with Reinforcement Learningcited by 18
1 more
  1. 2022TangoBERT: Reducing Inference Cost by using Cascaded Architecturecited by 13

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Cited by year (2026 to 7 Oct)

Citing papers per year: 2024: 8; 2025: 15; 2026: 10.

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  1. 2024Concise Thoughts: Impact of Output Length on LLM Reasoning and Costcited by 108
  2. 2024KG-RAG: Bridging the Gap Between Knowledge and Creativitycited by 55
  3. 2025Optimizing Model Selection for Compound AI Systemscited by 34
  4. 2025Causal LLM Routing: End-to-End Regret Minimization from Observational Datacited by 27
  5. 2025AgenticData: An Agentic Data Analytics System for Heterogeneous Datacited by 22
  6. 2024Think Together and Work Better: Combining Humans' and LLMs' Think-Aloud Outcomes for Effective Text Evaluationcited by 12
  7. 2025Catch Me If You Can? Not Yet: LLMs Still Struggle to Imitate the Implicit Writing Styles of Everyday Authorscited by 10
  8. 2025SenseRAG: Constructing Environmental Knowledge Bases with Proactive Querying for LLM-Based Autonomous Drivingcited by 9
  9. 2024Privacy-preserved LLM Cascade via CoT-enhanced Policy Learningcited by 8
  10. 2025Position: Scaling LLM Agents Requires Asymptotic Analysis with LLM Primitivescited by 7
  11. 2025"X of Information'' Continuum: A Survey on AI-Driven Multi-dimensional Metrics for Next-Generation Networked Systemscited by 7
  12. 2025RedactOR: An LLM-Powered Framework for Automatic Clinical Data De-Identificationcited by 4
21 more
  1. 2024Foundation Models for Autonomous Robots in Unstructured Environmentscited by 3
  2. 2024Engineering Trustworthy AI: A Developer Guide for Empirical Risk Minimizationcited by 3
  3. 2025Optimizing Large Language Models: Metrics, Energy Efficiency, and Case Study Insightscited by 3
  4. 2025Dynamic System Instructions and Tool Exposure for Efficient Agentic LLMscited by 3
  5. 2026The Price Reversal Phenomenon: When Cheaper Reasoning Models Cost Morecited by 3
  6. 2025LegalEval-Q: A New Benchmark for The Quality Evaluation of LLM-Generated Legal Textcited by 2
  7. 2025FAA Framework: A Large Language Model-Based Approach for Credit Card Fraud Investigationscited by 2
  8. 2025eMamba: Efficient Acceleration Framework for Mamba Models in Edge Computingcited by 1
  9. 2025Effective and Efficient Threat Hunting with Small Language Modelscited by 1
  10. 2026Multi-LLM Query Optimizationcited by 1
  11. 2024LLMBridge: Reducing Costs to Access LLMs in a Prompt-Centric Internetcited by 0
  12. 2024Software Performance Engineering for Foundation Model-Powered Softwarecited by 0
  13. 2025Transforming Decoder-Only Transformers for Accurate WiFi-Telemetry Based Indoor Localizationcited by 0
  14. 2026On-Device Large Language Models for Sequential Recommendationcited by 0
  15. 2026From Performance to Purpose: A Sociotechnical Taxonomy for Evaluating Large Language Model Utilitycited by 0
  16. 2026RAGent: Physics-Aware Agentic Reasoning for Training-Free mmWave Human Activity Recognitioncited by 0
  17. 2026Dialogue to Discovery: Attribute-Aware Preference Elicitation for Conversational Product Search Assistantscited by 0
  18. 2026CAMI: Cost-Aware Agent-Guided Multi-Indexing for Semantic Retrievalcited by 0
  19. 2026Opti-Q: A Constraint-Based Optimization Framework for Multi-LLM Question Planningcited by 0
  20. 2026Online Learning with LLM Experts from Limited Feedbackcited by 0
  21. 2026Analyzing and Mitigating Cost-Inefficient Behaviors in Coding Agentscited by 0