Towards Data Science

We Built a Routing Layer to Cut Our AI Costs. It Broke the Product.

A team cut their AI inference bill by more than half. Three months later, customer satisfaction was dropping and the cost savings were tied to the quality loss.

Towards Data Science
May 29

RAG Is Burning Money — I Built a Cost Control Layer to Fix It

Most RAG systems are optimized for answer quality, not cost—and that blind spot gets expensive fast. In this article, I break down a production-ready cost control layer combining semantic caching, query routing, token budgeting, and circuit breaking, achieving an 85% reduction in LLM costs without sacrificing answer quality.

By Emmimal P Alexander
Towards Data Science
2d ago

Your AI Bill Is a Toll Booth. Stop Paying Twice.

The article titled "Your AI Bill Is a Toll Booth. Stop Paying Twice." discusses how users are unexpectedly paying more for AI services than anticipated, likening the experience to a toll booth where one pays twice. It highlights the unseen costs that can arise when using AI tools and urges readers to be vigilant about their expenses. The piece was first published on Towards Data Science.

By Gursimar Singh
arXiv AI
Sep 12

RouteRepair: Instance-Level Failure Diagnosis and Targeted Repair in LLM-Based Automated Heuristic Design for Routing Optimization

RouteRepair is a method that diagnoses specific weaknesses in large language model (LLM)-generated routing heuristics by evaluating performance at the instance level and then applies targeted modifications to the heuristic components that are failing, while preserving components that already perform well. It combines routing evidence, solver behavior, and program context to set bounded repair objectives and validates each change through matched parent-child evaluation of failure recovery and collateral degradation. Experiments on the traveling salesman problem (TSP) and capacitated vehicle routing problem (CVRP) show significant reductions in optimality gaps and route costs, demonstrating that failure-aware, evidence-constrained refinement can improve routing heuristics on difficult instances while maintaining performance on easier cases.

By Binghao Ji, Di Huang, Jiahui Fang, Zhiyuan Liu