arXiv Machine Learning By Aditeya Baral, Radoslav Ralev, Iliya Sotirov Zhechev, Srijith Rajamohan, Jen Agarwal

Closing the Operational Gap in Semantic Caching

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Semantic caching reduces LLM inference costs by returning cached responses for semantically similar queries, but current evaluation using PR‑AUC only ranks scores and ignores usability at a fixed threshold, leading to poor deployment choices. The authors propose a cache‑aware metric, Precision–Cache Hit Ratio (P‑CHR) AUC, and an Operational Retention Rate (ORR) to measure how offline ranking quality translates to deployment. They decompose the operational gap into a recoverable threshold‑utility component and an irreducible structural component, showing that the gap is driven by the training objective rather than data scale and can be mitigated by score re‑normalization or objective changes, framing model selection as a threshold‑utility problem.

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