AI Coding Token Reduction: Rajkumar Sakthivel on Local Code Index
Rajkumar Sakthivel from Tesco discusses how a local code index reduced AI coding tokens by 94%, optimizing costs and performance by focusing on context over model improvements.

Visual TL;DR
sending ~45,000 tokens, only ~5,000 useful
From the article 3 mentionsSakthivel highlighted a common assumption in AI coding tools: the belief that sending as much context as possible to the model leads to better results.
From the article 2 mentionsThis inefficiency led to increased costs and latency, prompting a search for a more optimized approach.
focusing on context optimization, not model improvements
From the article 2 mentionsThe core revelation is that by implementing a local code index, they were able to achieve a remarkable 94% reduction in AI coding tokens, significantly cutting costs and improving performance.
leveraging multiple techniques for better context selection
From the article 2 mentionsBy employing Reciprocal Rank Fusion (RRF), they combined the strengths of both approaches, achieving a recall of 0.90 and covering each method's blind spots.
achieved remarkable reduction in AI coding tokens
From the article 7 mentionsThis demonstrated a reduction from 83,681 tokens per query in a full-file baseline to just 4,927 tokens after retrieval, and further down to 523 tokens after compression, achieving a 94% saving.
crucial for efficient and effective AI interactions
From the article 3 mentionsThe data showed that 90% of tokens are typically input (file reads, search, context), while only 10% are output (agent replies, code).
From the article 2 mentionsThe core revelation is that by implementing a local code index, they were able to achieve a remarkable 94% reduction in AI coding tokens, significantly cutting costs and improving performance.
the hard part of identifying incorrect context
Contents(7)
© 2026 StartupHub.ai. All rights reserved. You may not republish this article in full without a license. Search engines and AI research tools may crawl and summarize for reference. Bulk reproduction or model training requires a license. See our terms.
Written by
Daniel SingerEditor, StartupHub.ai
Daniel Singer is the editor of StartupHub.ai, a technology expert and thought leader on AI and its applications across sectors, from fintech and healthcare to developer tooling and consumer software. He writes and tests the tools covered here thoroughly and regularly, and built StartupHub.ai to give founders, operators and buyers a clearer read on what they are actually being sold.