# Prompt Compression in Production Task Orchestration: A Pre-Registered Randomized Trial

arXiv: https://arxiv.org/abs/2603.23525 · HTML: https://mlsanity.com/paper/2603.23525/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Placed in Efficient reasoning and agent inference, one of 12 directions in Efficient LLM inference and serving.
- Builds on 30 of its 58 references that are in the map.
- First posted on arXiv 6 Mar 2026.

## Placed in

- Efficient LLM inference and serving / [Efficient reasoning and agent inference](https://mlsanity.com/inference/efficient-reasoning-and-agent-inference/)

## Builds on (most cited first, 30 of 30)

- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [Efficient Memory Management for Large Language Model Serving with PagedAttention](https://mlsanity.com/paper/2309.06180/) (2023)
- [BERTScore: Evaluating Text Generation with BERT](https://mlsanity.com/paper/1904.09675/) (2019)
- [Program Synthesis with Large Language Models](https://mlsanity.com/paper/2108.07732/) (2021)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [MetaGPT: Meta Programming for A Multi-Agent Collaborative Framework](https://mlsanity.com/paper/2308.00352/) (2023)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [ChatDev: Communicative Agents for Software Development](https://mlsanity.com/paper/2307.07924/) (2023)
- [SnapKV: LLM Knows What You are Looking for Before Generation](https://mlsanity.com/paper/2404.14469/) (2024)
- [FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performance](https://mlsanity.com/paper/2305.05176/) (2023)
- [H2O: Heavy-Hitter Oracle for Efficient Generative Inference of Large Language Models](https://mlsanity.com/paper/2306.14048/) (2023)
- [Semantic Uncertainty: Linguistic Invariances for Uncertainty Estimation in Natural Language Generation](https://mlsanity.com/paper/2302.09664/) (2023)
- [RouteLLM: Learning to Route LLMs with Preference Data](https://mlsanity.com/paper/2406.18665/) (2024)
- [LongLLMLingua: Accelerating and Enhancing LLMs in Long Context Scenarios via Prompt Compression](https://mlsanity.com/paper/2310.06839/) (2023)
- [Learning to Compress Prompts with Gist Tokens](https://mlsanity.com/paper/2304.08467/) (2023)
- [Hybrid LLM: Cost-Efficient and Quality-Aware Query Routing](https://mlsanity.com/paper/2404.14618/) (2024)
- [Adapting Language Models to Compress Contexts](https://mlsanity.com/paper/2305.14788/) (2023)
- [LLMLingua-2: Data Distillation for Efficient and Faithful Task-Agnostic Prompt Compression](https://mlsanity.com/paper/2403.12968/) (2024)
- [LLMLingua: Compressing Prompts for Accelerated Inference of Large Language Models](https://mlsanity.com/paper/2310.05736/) (2023)
- [RECOMP: Improving Retrieval-Augmented LMs with Compression and Selective Augmentation](https://mlsanity.com/paper/2310.04408/) (2023)
- [In-context Autoencoder for Context Compression in a Large Language Model](https://mlsanity.com/paper/2307.06945/) (2023)
- [Compressing Context to Enhance Inference Efficiency of Large Language Models](https://mlsanity.com/paper/2310.06201/) (2023)
- [Challenges in Deploying Machine Learning: a Survey of Case Studies](https://mlsanity.com/paper/2011.09926/) (2020)
- [TaskBench: Benchmarking Large Language Models for Task Automation](https://mlsanity.com/paper/2311.18760/) (2023)
- [Prompt Compression and Contrastive Conditioning for Controllability and Toxicity Reduction in Language Models](https://mlsanity.com/paper/2210.03162/) (2022)
- [The Perplexity Paradox: Why Code Compresses Better Than Math in LLM Prompts](https://mlsanity.com/paper/2602.15843/) (2026)

## Built on by (most cited first, 1 of 1)

- [LAM: Efficient Lossy Agent Memory Framework With A Retrieval-Score Error Bound](https://mlsanity.com/paper/2609.32256/) (2026)

## Abstract (arXiv)

The economics of prompt compression depend not only on reducing input tokens but on how compression changes output length, which is typically priced several times higher. We evaluate this in a pre-registered six-arm randomized controlled trial of prompt compression on production multi-agent task-orchestration, analyzing 358 successful Claude Sonnet 4.5 runs (59-61 per arm) drawn from a randomized corpus of 1,199 real orchestration instructions. We compare an uncompressed control with three uniform retention rates (r=0.8, 0.5, 0.2) and two structure-aware strategies (entropy-adaptive and recency-weighted), measuring total inference cost (input+output) and embedding-based response similarity. Moderate compression (r=0.5) reduced mean total cost by 27.9%, while aggressive compression (r=0.2) increased mean cost by 1.8% despite substantial input reduction, consistent with small mean output expansion (1.03x vs. control) and heavy-tailed uncertainty. Recency-weighted compression achieved 23.5% savings and, together with moderate compression, occupied the empirical cost-similarity Pareto frontier, whereas aggressive compression was dominated on both cost and similarity. These results show that "compress more" is not a reliable production heuristic and that output tokens must be treated as a first-class outcome when designing compression policies.