How to Reduce AI API Cost Without Losing Quality

Most teams overspend because every request goes to the same expensive model.

Cost reduction checklist

• Route easy tasks to a cheaper/faster model.
• Trim unnecessary context before sending prompts.
• Cache repeated outputs (summaries, templates, boilerplate).
• Set max tokens intentionally.
• Use two-stage generation: draft fast, refine selectively.

Prompt optimization that saves money

Ask for exact output structure:

Return only a 5-bullet summary with no extra explanation.

This reduces token-heavy responses.

Team habit

Track cost per workflow, not just total monthly spend. You’ll quickly see which workflows need model routing or prompt refactoring.