Latency Budgeting

Latency Budgeting

Latency is a feature; budget it before you build.

Agents fail user-acceptance tests on latency more often than on quality. A great answer at 12 seconds is worse, in product terms, than a B+ answer at 2 seconds for most interactive use cases. Latency must be engineered, not measured after.

When to use this skill

• The user is building a user-facing chat, voice, or agentic UI.
• The user reports an agent that "works but is slow."
• The user is choosing a model tier and is about to default to the biggest one.
• The user is adding a sub-agent, a reflection step, or a guardrail and asks how to keep it snappy.

Where time actually goes

In order of typical magnitude for an LLM agent call:

1. Tool round-trips. Network + backend; serial loops dominate. Often 50–80% of wall-clock.
2. Time to first token (TTFT). Model-dependent and load-dependent.
3. Token generation. Output tokens × tokens-per-second.
4. Pre-flight overhead. Auth, embedding lookups, cache reads.
5. Client render. Often overlooked; streaming hides it.

If you don't know which of these dominates, you cannot optimise. Trace it.

Decision flow

1. What is the latency target? Pin a p50 and a p95 budget. No target = no design.
2. Is this user-facing and interactive? → stream by default. TTFT is the perceived latency.
3. Are tool calls in the loop independent? → parallelise them. Sequential is the default mistake.
4. Is the model tier appropriate for the task? → the smaller model is almost always fast enough for routing, classification, formatting.
5. Is there a re-plan or reflection step? → cap iterations; show progress streaming if it can't be removed.
6. Are you doing RAG at query time? → measure retrieval latency separately. It is often the silent killer.

The five rules

1. Budget per stage. If a pipeline has five stages, each gets a written budget that sums to the total. No stage gets a blank cheque.
2. Parallelise by default. Sequential tool calls only when there's a real data dependency.
3. Stream output. TTFT matters more than total time for almost every interactive UX.
4. Right-size the model. Use the biggest model on the step that actually needs it (reasoning, synthesis), the smallest on the rest (routing, formatting).
5. Cache the static prefix. See [[prompt-caching]] — cache hits often halve TTFT.

Anti-patterns to flag immediately

• Sequential by default. Two tool calls in series when the inputs don't depend on each other.
• One model for everything. Premium model for routing decisions a Haiku-tier model handles fine.
• Unstreamed UX. User stares at a spinner for 8 seconds while the answer is ready in chunks.
• No traceable latency. A p95 number with no per-stage breakdown is not actionable.
• Reflection in the hot path. Quality wrapper that triples latency without an A/B showing users care.
• Long context window on hot paths. TTFT scales with input length; trim aggressively.

Streaming notes

• Stream as soon as the model emits tokens; do not buffer to "clean up" the output.
• If post-processing is required, stream a placeholder + replace, or stream into a structured UI that tolerates updates.
• Tool calls in the middle of a stream interrupt TTFT — design for it.

Questions to ask the user

1. What is the p50 / p95 target in milliseconds? If "fast" is the answer, ask again.
2. What does the user see while waiting? Is anything streamed today?
3. Which steps are independent and could run in parallel today?
4. What model tier is each step using, and why?
5. What is the latency of the slowest tool, measured at p95?
6. Is the agent's latency bimodal (fast path + slow path)? Are users surfacing the bimodality?

The hard line

If a step has no latency budget, it has no budget. Total p95 is a result, not a target — the targets live on the stages.

Why this exists

Latency complaints in production almost always trace back to architectural decisions made without a budget — a sequential loop where parallel would do, a premium model where a small one would do, an unstreamed pipeline where streaming was free. Budgeting per stage forces the decisions to be made deliberately. See [link to article on agent latency].

References

• references/streaming.md — UX patterns for streaming, partial outputs, mid-stream tool calls.
• references/model-routing.md — model-tier selection per step.
• references/parallel-tools.md — how to express parallel tool calls in major frameworks.

Related skills

• Latency and cost share levers — [[agent-cost-modeling]].
• Architecture sets the latency floor — [[agent-architecture-patterns]].
• Caching cuts TTFT and cost together — [[prompt-caching]].
• Per-stage latency is read from traces — [[agent-observability]].
• Retrieval latency is its own budget line — [[rag-vs-context-engineering]].