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Glossary entry

Prompt Efficiency

The practice of achieving the desired model output using fewer tokens, lower-cost models, or simpler prompt structures.

Why it matters

Prompt efficiency matters because prompt design directly affects token usage, latency, model choice, and therefore the recurring cost of AI workflows.

In mature AI operations, prompt efficiency is not only a quality technique. It is also a practical lever for reducing cost without changing the business intent of the workflow.