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AI0-001 AI Infrastructure and Technologies Practice Question

A company uses Azure OpenAI to generate customer support responses. The team notices that repeated queries with similar context incur high costs due to token usage. They want to reduce costs without affecting response quality. Which strategy is MOST effective?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Implement prompt caching

Prompt caching stores and reuses tokens from previous queries, reducing token consumption for similar requests and lowering costs without quality loss.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Use a larger model to improve efficiency

    Why it's wrong here

    Larger models cost more per token, increasing costs.

  • Increase the frequency penalty

    Why it's wrong here

    Frequency penalty changes output diversity but does not reduce token usage.

  • Reduce the max_tokens parameter

    Why it's wrong here

    Lowering max_tokens may truncate responses, affecting quality.

  • Implement prompt caching

    Why this is correct

    Prompt caching avoids recomputing common prefixes, reducing token usage.

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