Insights

AI Model Optimisation: Strategies for Peak Performance in 2025

3 min read By Billie Sherwood
AI Optimisation Machine Learning Model Performance Cost Reduction Best Practices

As AI adoption accelerates across industries, organisations are discovering that building a model is only half the battle. The real challenge lies in optimising models for production—balancing performance, cost, and accuracy while maintaining reliability at scale.

The Optimisation Imperative

Modern AI applications face several critical challenges:

  • Inference Costs: Running models in production can be expensive, especially at scale
  • Latency Requirements: Real-time applications demand fast response times
  • Resource Constraints: Limited compute and memory resources
  • Accuracy Trade-offs: Finding the sweet spot between model size and performance

Key Optimisation Strategies

1. Model Quantization

Quantization reduces model precision from 32-bit floats to 8-bit integers, resulting in:

  • 4x reduction in model size
  • 2-4x faster inference times
  • Lower memory requirements
  • Minimal accuracy loss (typically <1%)

2. Model Pruning

Pruning removes unnecessary connections and neurons:

  • Identify and remove redundant parameters
  • Maintain model accuracy while reducing size
  • Enable faster training and inference
  • Reduce overfitting risks

3. Knowledge Distillation

Transfer knowledge from large models to smaller ones:

  • Train compact models using teacher-student frameworks
  • Achieve similar accuracy with 10x smaller models
  • Enable edge deployment
  • Reduce computational requirements

4. Architecture Optimisation

Choose the right model architecture for your use case:

  • Evaluate transformer alternatives for NLP tasks
  • Consider efficient CNN architectures for vision
  • Leverage pre-trained models and fine-tuning
  • Explore hybrid architectures

Production Deployment Considerations

Infrastructure Optimisation

  • GPU Selection: Choose the right GPU for your workload
  • Batch Processing: Optimise batch sizes for throughput
  • Caching: Implement intelligent caching strategies
  • Auto-scaling: Use dynamic scaling based on demand

Monitoring and Observability

  • Track model performance metrics in real-time
  • Monitor inference latency and throughput
  • Set up alerts for performance degradation
  • Implement A/B testing for model versions

Cost Management

  • Use spot instances for non-critical workloads
  • Implement request batching
  • Leverage serverless options where appropriate
  • Monitor and optimise cloud spend

Measuring Success

Key metrics to track:

  • Inference Latency: Target <100ms for real-time applications
  • Cost per Prediction: Aim for 50-70% reduction
  • Model Accuracy: Maintain within 2% of baseline
  • Throughput: Measure requests per second
  • Resource Utilisation: Optimise GPU/CPU usage

Case Study: E-commerce Recommendation System

A leading e-commerce platform optimised their recommendation model:

  • Reduced inference cost by 65% through quantisation
  • Improved latency from 200ms to 45ms
  • Maintained accuracy at 98.5% of original model
  • Enabled real-time personalisation at scale

Best Practices

  1. Start Early: Optimise during development, not after deployment
  2. Measure Everything: Establish baseline metrics before optimisation
  3. Iterate Incrementally: Make small changes and measure impact
  4. Test Thoroughly: Validate optimisations with real-world data
  5. Document Changes: Keep detailed records of optimisation techniques

The Future of AI Optimisation

Emerging trends to watch:

  • Neural Architecture Search (NAS): Automated architecture discovery
  • Federated Learning: Distributed optimisation without data centralisation
  • Edge AI: Optimising for resource-constrained devices
  • Green AI: Sustainable AI with lower carbon footprint

Conclusion

AI optimisation is no longer optional—it’s essential for production success. By implementing these strategies, organisations can achieve significant cost savings, improved performance, and better scalability while maintaining model accuracy.

Ready to optimise your AI models? Our team specialises in model optimisation and can help you achieve peak performance while reducing costs. Contact us for a consultation.

B

Billie Sherwood

Director at Orion Data Analytics, specializing in digital transformation and Data & AI strategy.

Ready to Transform Your Organisation?

Let's discuss how Orion Data Analytics can help you achieve your digital transformation goals.

Get in Touch