Don't Break the Cache: An Evaluation of Prompt Caching for Long-Horizon Agentic Tasks

Recent advancements in Large Language Model (LLM) agents have enabled complex multi-turn agentic tasks requiring extensive tool calling, where conversations can span dozens of API calls with increasingly large context windows. However, although major LLM providers offer prompt caching to reduce cost and latency, its benefits for agentic workloads remain underexplored in the research literature. To our knowledge, no prior work quantifies these cost savings or compares caching strategies for multi-turn agentic tasks. We present a comprehensive evaluation of prompt caching across three major LLM providers (OpenAI, Anthropic, and Google) and compare three caching strategies, including full context caching, system prompt only caching, and caching that excludes dynamic tool results. We evaluate on DeepResearchBench, a multi-turn agentic benchmark where agents autonomously execute real-world web search tool calls to answer complex research questions, measuring both API cost and time to first token (TTFT) across over 500 agent sessions with 10,000-token system prompts. Our results demonstrate that prompt caching reduces API costs by 45-80% and improves time to first token by 13-31% across providers. We find that strategic prompt cache block control, such as placing dynamic content at the end of the system prompt, avoiding dynamic traditional function calling, and excluding dynamic tool results, provides more consistent benefits than naive full-context caching, which can paradoxically increase latency. Our analysis reveals nuanced variations in caching behavior across providers, and we provide practical guidance for implementing prompt caching in production agentic systems.

Simulation Agent: A Framework for Integrating Simulation and Large Language Models for Enhanced Decision-Making

Simulations, although powerful in accurately replicating real-world systems, often remain inaccessible to non-technical users due to their complexity. Conversely, large language models (LLMs) provide intuitive, language-based interactions but can lack the structured, causal understanding required to reliably model complex real-world dynamics. We introduce our simulation agent framework, a novel approach that integrates the strengths of both simulation models and LLMs. This framework helps empower users by leveraging the conversational capabilities of LLMs to interact seamlessly with sophisticated simulation systems, while simultaneously utilizing the simulations to ground the LLMs in accurate and structured representations of real-world phenomena. This integrated approach helps provide a robust and generalizable foundation for empirical validation and offers broad applicability across diverse domains.