Definition
Context Compression: The practice of reducing token count in an AI agent's context window while preserving the information needed to complete tasks.
Token prices fell 280x but enterprise AI spend rose 320%. Poor context architecture drives 60-70% of total AI costs. Here is where the money actually goes.
Context compression reduces AI agent memory usage by 26-54% while preserving task performance. Here's how it works and why bigger context windows aren't the answer.
65% of agent failures come from context drift, not token limits. Here's how context compression keeps long-running AI agents on track.