A Practical Test of AI Workflow Optimization: Context, Caching, Tokens and Cost

I’ve just published a video based on a real text-analysis workflow involving several thousand API requests and millions of tokens per trial.

The main idea is simple: the model should do only the work that actually requires a model.

I compare four trials and look at how cost and behavior change when adjusting:

  • input caching
  • output token generation
  • task decomposition
  • function calling
  • structured responses
  • context cleanup
  • model selection per step
  • reuse of previous results to reduce decision space

The workflow is orchestrated by the application rather than by an autonomous agent, and each model is used for a small, well-defined task.

The experiments also produced some useful failures: repeated function-call loops, overclassification, poor multi-word term extraction, and cases where a small prompt or schema design decision had a surprisingly large effect on token usage.

The video includes usage and cost data, per-step analysis, recorded contexts, and some preliminary observations about result quality.

Full video: https://youtu.be/X3RT8wnQQRE

I’d be very interested in comparing approaches with anyone working on similar multi-step API workflows.

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