How do you measure latency in LLM applications and why is it important?

Latency in LLM applications refers to the time it takes for the model to produce a response after receiving input. It is measured using tools that timestamp the input and output processes. Measuring latency is crucial because it impacts user experience; high latency can lead to user frustration and decreased engagement. Additionally, understanding latency helps identify bottlenecks in the system, enabling optimizations to improve the model's responsiveness in real-world applications.