Your agent's memory strategy is probably costing you thousands per month unnecessarily. The problem: Most teams store everything in a vector database. **Why that's wrong:** - Embedding costs on EVERY message (even "hi" and "thanks") - 100-200ms retrieval latency for simple lookups - Semantic search for structured data (overkill) **The solution: Hybrid architecture** Short-term memory (conversation history): → Redis / key-value store → $50/month, 1-2ms retrieval → Exact lookups Long-term memory (patterns, knowledge): → Vector DB (summaries only) → $270/month, semantic search → Cross-session patterns **Result: 94% cost reduction** Agentic AI Enterprise Bootcamp → https://bootcamp.nachiketh.in → Production architecture + cost optimization