Challenge: Current methods for improving LLM efficiency focus on optimizing the model itself, while prompt-centric methods focus on lowering the complexity of input.
Approach: They propose to use prompt compression to optimize the compression encoder and combine hard and soft prompt methods to improve the efficiency of LLMs.
Outcome: The proposed methods are categorized into hard prompt methods and soft prompt methods.

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Understanding and Improving Information Preservation in Prompt Compression for LLMs (2025.findings-emnlp)

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Challenge: Recent advances in large language models have enabled their successful application to a broad range of tasks.
Approach: They propose a framework that allows for in-depth analysis of prompt compression methods.
Outcome: The proposed framework analyzes state-of-the-art soft and hard compression methods . it shows that some fail to preserve key details from the original prompt, limiting performance on complex tasks.
LLMLingua: Compressing Prompts for Accelerated Inference of Large Language Models (2023.emnlp-main)

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Challenge: Large language models (LLMs) are increasingly lengthy and require longer prompts . this paper presents a coarse-to-fine prompt compression method to reduce cost and increase performance.
Approach: They propose a coarse-to-fine prompt compression method that maintains semantic integrity under high compression ratios and a token-level iterative compression algorithm to better model the interdependence between compressed contents.
Outcome: The proposed method yields state-of-the-art performance and allows for up to 20x compression with little performance loss over four datasets from different scenarios.
Style-Compress: An LLM-Based Prompt Compression Framework Considering Task-Specific Styles (2024.findings-emnlp)

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Challenge: Prompt compression reduces inference time and costs while maintaining informativeness for different usage scenarios.
Approach: They propose a framework that adapts a smaller language model to compress prompts for a larger model on a new task without additional training.
Outcome: The proposed framework outperforms two baseline models in four tasks . iteratively generates and selects effective compressed prompts as task-specific demonstrations .
Prompt Compression and Contrastive Conditioning for Controllability and Toxicity Reduction in Language Models (2022.findings-emnlp)

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Challenge: We explore the idea of compressing the prompts used to condition language models.
Approach: They explore the idea of compressing the prompts used to condition language models . they show that compressed prompts can retain a substantive amount of information about the original prompt .
Outcome: The proposed method can be extended to controllability and toxicity reduction.
From Reading to Compressing: Exploring the Multi-document Reader for Prompt Compression (2024.findings-emnlp)

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Challenge: Large language models (LLMs) have recently exhibited performance gains owing to a wide variety of prompting techniques, including Retrieval-Augmented Generation (RAG), Chain-of-Thought (CoT), and In-Context Learning (ICL).
Approach: They propose a prompt compression method that captures the global context without compromising semantic consistency while detouring the necessity of pseudo-labels for training the compressor.
Outcome: Empirical results show that the proposed method retains key contexts while reducing the prompt length by 80%.
A Systematic Survey of Automatic Prompt Optimization Techniques (2025.emnlp-main)

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Challenge: Recent advances in prompt engineering have created impediments for end users to adopt . however, prompt engineering remains an impedance due to rapid advances in models, tasks, and associated best practices.
Approach: They propose to define APO as a 5-part unifying framework and categorize all relevant works based on their salient features.
Outcome: The proposed framework aims to improve the performance of large language models on various tasks.
500xCompressor: Generalized Prompt Compression for Large Language Models (2025.acl-long)

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Challenge: Prompt compression is important for large language models to increase inference speed, reduce computation cost, and improve user experience.
Approach: They propose a method that compresses natural language contexts into a special token . they propose to reduce computations and memory costs by reducing the complexity .
Outcome: The proposed method reduces computations and memory costs by 27-90% . it retains 70-74% and 77-84% of the LLM capabilities at high compression ratios .
Heuristic-based Search Algorithm in Automatic Instruction-focused Prompt Optimization: A Survey (2025.findings-acl)

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Challenge: Recent advances in Large Language Models (LLMs) have led to remarkable achievements across a variety of NLP tasks.
Approach: They propose a taxonomy of automatic prompt optimization methods that explore and improve prompts with minimal human oversight.
Outcome: The proposed methods can explore and improve prompts with minimal human oversight.
Learning to Compress Prompt in Natural Language Formats (2024.naacl-long)

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Challenge: Existing work rely on compressing long contexts into soft prompts, but soft prompt compression encounters limitations in transferability . natural language (NL) prompts are incompatible with back-propagation, and NL prompts lack flexibility in imposing length constraints.
Approach: They propose a framework that compresses long prompts into NL formatted Capsule Prompts.
Outcome: The proposed framework reduces 81.4% of the original length, decreases inference latency up to 4.5x, and saves 80.1% of budget overheads while providing transferability across diverse LLMs and different datasets.
LongLLMLingua: Accelerating and Enhancing LLMs in Long Context Scenarios via Prompt Compression (2024.acl-long)

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Challenge: Longer prompts introduce irrelevant and redundant information, which can weaken LLMs' performance.
Approach: They propose a prompt compression tool that improves LLMs' perception of key information in input prompts by up to 21.4% with around 4x fewer tokens in GPT-3.5-Turbo.
Outcome: The proposed solution improves performance and reduces costs and latency by up to 21.4% with around 4x fewer tokens in the NaturalQuestions benchmark.

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