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Azure AI is making it easier than ever for developers to build faster, smarter, and more cost-effective AI applications. With new features like Realtime API, Prompt Caching, Vision Fine-Tuning, and Model Distillation, Azure AI offers powerful tools to improve performance and scale AI projects. In this blog, we’ll show how these exciting features can help take your AI development to the next level.
What’s inside the blog
- Realtime API
- Prompt Caching
- Vision Fine-Tuning
- Model Distillation
- Safety Considerations
- Conclusion
- Frequently Asked Questions
Realtime API
Enhancing Multimodal Conversations with Low Latency
One of the most significant new tools in the Azure AI portfolio is the Realtime API, which allows developers to create low-latency, multimodal conversational AI applications. By enabling seamless integration of text, audio, and function calling, the Realtime API offers a new level of engagement for users through natural, expressive conversations.
Key Benefits of the Realtime API:
- Native Speech-to-Speech Interaction: The Realtime API eliminates the need for speech-to-text conversion, resulting in faster, more natural voice interactions.
- Natural Voice Inflections: It supports emotional nuances like laughter, whispers, and more, making interactions feel more human.
- Simultaneous Multimodal Output: You can deliver faster-than-realtime audio while also providing text outputs for moderation or additional layers of functionality.
Reducing Costs and Latency for Reused Prompts
Another significant feature introduced is Prompt Caching, designed to reduce both the cost and time associated with processing repeated prompts. By routing requests to servers that have recently processed similar prompts, developers can avoid redundant computations.
How Prompt Caching Works:
- Cache Lookup: When an API request is made, the system checks if a similar prompt has been cached.
- Cache Hit: If a match is found, the cached result is used, significantly reducing latency and costs.
- Cache Miss: If no match is found, the full prompt is processed, and its prefix is cached for future requests.
This feature can reduce latency by up to 80% and costs by 50%, making it particularly beneficial for developers working with complex or frequently reused prompts.
Vision Fine-Tuning
Training AI with Text and Image Inputs
Azure AI’s Vision Fine-Tuning allows users to enhance models with both text and image inputs in JSONL files. This capability opens up new possibilities for training models that can understand visual data alongside textual information.
Real-World Applications:
For instance, Grab, a major food delivery service in Southeast Asia, utilized Vision Fine-Tuning to improve its GrabMaps platform. By fine-tuning models with just 100 examples, they achieved a 20% increase in lane count accuracy and a 13% improvement in speed limit sign localization.
How Vision Fine-Tuning Works:
Developers can provide a combination of text and image data in JSONL files, allowing Azure AI models to be fine-tuned for specific tasks. This capability is particularly useful for applications that require a deeper understanding of visual content alongside textual context, such as product recognition or automated inventory management.
Model Distillation
Efficiently Training Smaller Models
Model Distillation is a technique within Azure AI that allows developers to compress the knowledge of larger, more powerful models into smaller, more efficient ones. This process reduces the operational costs and complexity of deploying large models, making it easier to scale AI applications.
Process Overview:
- Storing High-Quality Outputs: First, generate high-quality outputs from a large Azure AI model, such as GPT-4. Use the
store: trueoption in the Azure OpenAI Service to save these outputs for fine-tuning smaller models. - Establishing a Baseline: Evaluate both the large and small models to establish performance baselines, allowing you to track improvements after distillation.
- Creating a Training Dataset: Select a subset of stored completions to fine-tune the smaller model, such as GPT-4-mini. Even a few hundred samples can result in significant performance gains.
- Fine-Tuning and Evaluation: After fine-tuning the smaller model, evaluate its performance against the original to measure improvements.
By applying Model Distillation, developers can create smaller, more efficient models that still maintain the performance and capabilities of larger models, optimizing both cost and deployment efficiency within Azure AI environments.
Safety Considerations
While these AI features offer groundbreaking advancements, they also raise safety concerns. The Realtime API’s ability to mimic human voices poses risks of misuse. For example, there have been incidents where AI-generated voices were used to impersonate public figures in robocalls.

To mitigate these risks, several safety measures have been implemented:
- Restricted API Access: OpenAI’s API cannot directly call businesses or individuals, preventing misuse in fraudulent or unsolicited calls.
- Transparency: Developers are encouraged to clearly disclose when users are interacting with an AI system rather than a human, to avoid confusion or manipulation.
- Audio Safety Infrastructure: OpenAI employs a robust audio safety infrastructure designed to minimize potential misuse. This system monitors and addresses potential abuses related to generating and using AI voices.
These safety considerations ensure that while leveraging these powerful AI tools, developers and organizations also take steps to prevent potential misuse, ensuring responsible and ethical use of AI technologies.
Conclusion
The latest innovations from Azure AI—Realtime API, Prompt Caching, Vision Fine-Tuning, and Model Distillation—offer developers powerful tools to enhance the performance and scalability of AI applications. These features help developers create more immersive, efficient, and cost-effective solutions while maintaining the flexibility to fine-tune and optimize models for specific use cases. Whether you are working on multimodal conversations, reducing costs with prompt caching, or enhancing your models’ performance, these tools will provide you with the resources to elevate your AI projects within Azure.
Frequently Asked Questions
What are the tools available for analyzing and summarizing documents using AI?
Microsoft 365 Copilot , Paperguide , ChatDOC, NotebookLM (Google Labs) , Petal , Scribbr’s Free Summarizer
How is prompt flow related to other tools like Lang Chain?
Orchestration and Workflow Management: Prompt Flow: Manages prompt workflows in a user-friendly interface. LangChain: Builds complex, code-driven chains and integrates with various models. Integration: Prompt Flow: Best within specific cloud ecosystems. LangChain: Broad integrations with models, APIs, and databases. Testing and Experimentation: Prompt Flow: Visual, easy-to-use A/B testing. LangChain: Programmatic testing for complex configurations. Use Cases: Prompt Flow: Quick iteration in managed environments. LangChain: Advanced multi-step workflows with external system links.
How can Al optimize processes, automate tasks, and detect fraud?
Process Optimization: AI finds inefficiencies and predicts demand to improve productivity. Task Automation: Automates repetitive tasks, freeing time and reducing errors. Fraud Detection: Detects unusual patterns in real-time, enhancing security in finance and e-commerce.
How is pricing structured for the Al development platform?
AI development platform pricing typically includes these components: Model Usage: Charged per API call or per request based on model complexity (e.g., per 1,000 tokens or inference). Compute Resources: Billed per hour for CPU, GPU, or TPU usage, often based on the model size and processing time. Storage: Charged for data storage needs, including model data, training datasets, and processed data. Training Costs: Incurred based on the time and compute resources used for model training, especially for custom models.
Related References
- The Role of AI and ML in Cloud Computing
- GPT 4 vs GPT 3: Differences You Must Know in 2024
- What is Prompt Engineering?
- What Is NLP (Natural Language Processing)?
- Deploying Foundation Models in Azure OpenAI Studio
- Create Azure OpenAI Service Resources using Console & CLI : Step-by-step Activity Guide
- Azure AI/ML Certifications: Everything You Need to Know




