Reducing LLM API Costs: How Semantic Cache Handles Repetitive Queries

qdrant_engine · x · 2026-08-04

In LLM applications, users frequently ask identical questions using different phrasings (e.g., inquiring about refund policies). Traditional keyword-based caches fail to capture these semantic duplicates, leading to redundant API calls.

Semantic caching stores previous question-answer pairs and evaluates the semantic similarity of new queries. If the similarity score exceeds a defined threshold, it returns the cached response directly, bypassing the retrieval and generation phases to significantly reduce unnecessary API calls and latency.

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