Semantic Caching
A caching strategy that stores and retrieves AI model responses based on the semantic meaning of the input rather than exact string matching. When a user asks 'What is your return policy?' and a cached response exists for 'How do I return an item?', semantic caching recognizes these as equivalent and serves the cached answer. This reduces LLM inference costs by 30-60% for support and sales agents that handle repetitive queries with varied phrasing.
Written by Max Zeshut
Founder at Agentmelt · Last updated Sep 9, 2026
Example
A support agent receives 500 daily questions about shipping times. With semantic caching, only the first unique phrasing triggers an LLM call; subsequent variations ('when will my order arrive?', 'how long does delivery take?', 'shipping ETA?') are served from cache—cutting inference costs by 40%.
Frequently asked questions
- How is semantic caching different from regular caching?
- Regular caching requires an exact match on the input string. Semantic caching uses embeddings to match inputs that mean the same thing but are worded differently. This is critical for AI agents because customers never ask the same question the same way twice.