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Context hygiene & token management

Typical savings30–50% of input-token spend
EffortMedium — ongoing discipline

Chat histories grow without bound, RAG pipelines stuff 20 chunks where 3 would do, and agents drag full tool outputs through every subsequent turn. Input-side bloat is the quiet half of most AI bills.

Sliding-window histories with periodic summarization, reranked retrieval that keeps only the top few chunks, and tool-output truncation routinely reclaim 30–50% of input spend — and usually improve answer quality, because the model sees less noise.

How to do it

  1. Cap conversation history; summarize older turns into a compact state instead of replaying them.
  2. Add a reranker to retrieval and cut passed chunks to the minimum that preserves answer quality.
  3. Truncate or summarize tool outputs before they enter the context.
  4. Log tokens-per-request per feature; alert on drift.

Frequently asked questions

Will trimming context hurt quality?

Usually the opposite — models get distracted by irrelevant context ("lost in the middle"). Measured trimming with evals tends to improve both cost and accuracy.

Tools for this method

Context & memory layer

Mitosis Cortex

The cut-spend-at-the-source option: a persistent memory graph over your email, docs, chats, and tools that agents query instead of…

LLM observability & cost tracking

Helicone

Long the default open-source LLM cost dashboard. Acquired by Mintlify in March 2026 and now maintenance-only — existing deployment…

Next method: #8 Cost attribution & AI FinOps