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870 Microsoft's new AI training method eliminates bloated system prompts without sacrificing model performance

VentureBeat
VentureBeat · 02/26/2026 19:00 EDT

In building LLM applications, enterprises often have to create very long system prompts to adjust the model’s behavior for their applications. These prompts contain company knowledge, preferences, and application-specific instructions. At enterprise scale, these contexts can push inference latency past acceptable thresholds and drive per-query costs up significantly. On-Policy Context Distillation (OPCD), a new training framework proposed by researchers at Microsoft, helps bake the knowledge and preferences

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