How We Cut AI Agent Costs by 90% Using Context Engineering: A Technical Deep Dive
TL;DR We reduced our AI agent costs by 90% (from $47K to $4.7K monthly) while improving response times 8x through six context engineering principles: KV-cache optimization for 10x cost reduction, smart tool management limiting agents to 5-7 tools, file-based memory systems replacing context bloat, todo.md patterns for campaign tracking, error preservation for agent learning, and proper cache invalidation. These techniques enable our AI agents to handle 10M+ SEO tasks monthly while maintaining context across thousands of analyses.
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