Performance

How to Optimize LLM Latency:
From 10s to 2s Responses

Your users won't wait 10 seconds for an answer. Here are the 8 techniques that cut LLM response times by 80% without sacrificing quality.

LLM latency is the silent killer of AI products. Users in 2026 expect responses in under 3 seconds. Most production LLM applications take 5 to 15 seconds per request when you factor in retrieval, prompt construction, inference, and post-processing. This guide covers 8 concrete techniques that reduce end-to-end latency from 10+ seconds to under 2 seconds, with real benchmarks from production systems.

Understanding Where Latency Comes From

Before optimizing, measure. Most teams blame the LLM, but the model inference is often only 40-50% of total latency. The rest comes from network round-trips, retrieval, prompt assembly, and output parsing.

Component Typical Latency % of Total
Embedding Generation50-200ms5%
Vector Search100-500ms10%
Prompt Assembly10-50ms1%
LLM Inference (TTFT)500-2000ms30%
Token Generation2000-8000ms50%
Output Parsing10-50ms1%
Total3-11 seconds100%

Technique 1: Streaming Responses (Perceived Latency: -70%)

The single most impactful change is streaming. Instead of waiting for the full response, start displaying tokens as they are generated. Time to First Token (TTFT) for GPT-4o is typically 300-600ms. Once the first token arrives, the user sees progress and perceives the system as fast, even if total generation takes 5 seconds.

# FastAPI streaming endpoint

@app.post("/chat")

async def chat(request: ChatRequest):

return StreamingResponse(

generate_stream(request.message),

media_type="text/event-stream"

)

This doesn't reduce actual latency, but it transforms the user experience. For backend scaling patterns, see our guide on scaling FastAPI for 1 million AI requests.

Technique 2: Semantic Caching (Cache Hit Latency: <100ms)

Many users ask the same questions with slightly different phrasing. A semantic cache stores previous responses indexed by their embedding, not their exact text. When a new query comes in, compute its embedding and check if there is a cached response with cosine similarity above 0.95. If yes, return the cached response in under 100ms instead of calling the LLM.

In production, semantic caches hit 20-40% of queries in customer support and FAQ-style applications. That alone cuts your average latency significantly and reduces your OpenAI bill at the same time.

Technique 3: Model Routing (Use the Right Model for the Job)

Not every query needs GPT-4o. A classifier (which can be a small, fast model like GPT-4o-mini or a fine-tuned distilled model) categorizes the incoming query by complexity. Simple queries ("What are your business hours?") go to a small, fast model (~200ms). Complex queries ("Analyze this contract for risk factors") go to a large, capable model (~3s).

Impact:

Companies implementing model routing report 40-60% reduction in average latency because 60-70% of production queries are simple enough for smaller models.

Technique 4: Prompt Compression (Reduce Input Tokens by 50%)

Longer prompts mean slower responses. Time to First Token scales linearly with input length. Three approaches to compress prompts without losing performance:

  • Remove redundant instructions: Most system prompts have repetitive phrasing. Condense them.
  • Summarize retrieved context: Instead of passing 5 raw chunks (2000 tokens each), summarize them into a 500-token context block.
  • Use structured formats: JSON and XML prompts are more token-dense than natural language instructions.

Technique 5: Parallel Retrieval and Prefetching

Most RAG pipelines run sequentially: embed query, then search vector DB, then construct prompt, then call LLM. Parallelize the independent steps. If you know the user is typing, start embedding and prefetching likely documents before they hit send. Run the vector search and any SQL lookups in parallel.

This shaves 200-500ms off total latency by overlapping I/O-bound operations. For vector database performance characteristics, see our vector DB comparison.

Technique 6: Output Length Control

Token generation is the biggest latency contributor. If your use case only needs a 100-token answer, set max_tokens accordingly. Don't let the model ramble to 500 tokens when 100 will do. Combine this with structured output (JSON mode) to get predictable, concise responses.

Technique 7: Edge Deployment and Regional Endpoints

Network latency adds 50-200ms per round-trip depending on geography. If you are calling OpenAI from Asia-Pacific, you are adding 150-200ms of network overhead. Use regional API endpoints where available, or deploy open-source models on regional infrastructure using services like AWS Bedrock, Azure ML, or self-hosted with vLLM. For infrastructure patterns, see Terraform with AWS Bedrock.

Technique 8: Speculative Decoding and Batching

If you self-host models, speculative decoding uses a small "draft" model to predict several tokens ahead, then verifies them with the large model. This yields 2-3x throughput improvement for minimal quality loss. On the API side, batch non-urgent requests together using background queues to optimize throughput even if individual response latency is unchanged.

Putting It All Together: The Optimization Stack

  1. Start with streaming to fix perceived latency immediately.
  2. Add semantic caching to eliminate repeat queries (20-40% of traffic).
  3. Implement model routing to send simple queries to fast models.
  4. Compress prompts to reduce TTFT on complex queries.
  5. Parallelize I/O to overlap retrieval and pre-processing.
  6. Control output length to minimize generation time.

Applied together, these techniques typically reduce P95 latency from 10-12 seconds to 1.5-2.5 seconds.

Frequently Asked Questions

Does reducing latency hurt response quality?

Streaming and caching have zero quality impact. Model routing can reduce quality for complex queries if the classifier miscategorizes them. Prompt compression needs careful testing; measure your evaluation metrics before and after. Our LLM evaluation guide covers how to measure this properly.

What is a good target latency for AI applications?

For chat interfaces: TTFT under 500ms, full response under 3 seconds. For behind-the-scenes processing (document analysis, summarization): 5-10 seconds is acceptable since there is no user waiting.

How does Redis help with LLM latency?

Redis is commonly used for semantic caching (with the RediSearch module for vector similarity) and as a session store for conversation history. Read more in our piece on Redis in AI agent architectures.

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