Semantic Caching and Agent Orchestration
~40 min read
How semantic caching cuts latency and cost for repetitive queries, and how to run agent loops in production with appropriate blast-radius controls.
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Key points
- •Semantic caching returns a cached response when a new query's embedding is above a cosine similarity threshold — phrases the same question differently and still hits the cache
- •Never share semantic cache entries across users for personalized or user-specific responses
- •Production agents need hard caps: max iterations, wall-clock timeout, cost budget, and human-in-the-loop for irreversible tool calls