LEARNER · GLOBAL
Prompt caching: how banks reduce LLM inference costs 80%
Prompt caching is a technique where AI systems store frequently-used context (e.g., regulatory documents, product terms, customer profiles) in memory, so LLMs don't reprocess the same text on every request. Banks using it report 80% cuts to per-request API costs and latency. Think of it as caching a database query result instead of re-running the query.
WHY IT MATTERS
As BFSI firms scale AI pilot budgets hit cost walls. Prompt caching is now table-stakes for any production LLM app; teams not implementing it are burning 4-5x unnecessary API spend.