What is Prompt Management for LLM Applications? Tools, Techniques and Best Practices

Explore the essentials of prompt management, including effective tools, techniques, and best practices for optimal outcomes.

17 min readMay 22, 2024


By: Grig Duta, Solutions Architect at Qwak

Large Language Model (LLM) applications are rapidly becoming essential in enterprise technology, driven by advances in models like GPT-4. As these applications grow more complex, they introduce unique challenges in performance measurement, debugging, and prompt optimization.

In this article, we’ll delve into the challenges of managing prompts in production-level LLM applications and explore the leading tools available for this task. We’ll focus on strategic prompt management practices that can enhance the functionality and effectiveness of LLM applications.

By the end of this read, you’ll have a clearer understanding of how to effectively choose and utilize tools in your LLM app stack to manage, evaluate, and fine-tune prompts, ensuring they perform optimally in real-world scenarios.

Understanding Prompt Management in Production-Level LLM Apps

What are Prompts

Prompts are essentially the starting points or the questions you pose to a Large Language Model (LLM), like GPT-4. They serve as the initial input that guides the AI in generating a response. When querying LLMs, the way you craft these prompts is essential because these models, by nature, are stochastic. This means that the LLM’s responses can vary widely-even with the same prompt under similar conditions-depending on how the prompt is structured.

Why are prompts so important? Because the specificity, clarity, and structure of your prompt directly influence the quality and relevance of the AI’s output. A well-designed prompt leads to more accurate and helpful responses, while a vague or poorly constructed prompt might result in irrelevant or overly general information.

When working with LLM models, which are stochastic (statistical) in nature, even subtle changes in wording can significantly affect the output. For instance, consider the prompts “Explain how solar panels work” versus “Describe the technical mechanisms of photovoltaic cells.” While both prompts seek information about solar energy, the latter is more likely to elicit a detailed, technical response. Additionally, the inclusion of context or constraints can refine the output further. A prompt like “Discuss the environmental impacts of solar energy compared to coal within the context of climate change” guides the model to produce a more targeted and relevant response.

Prompts also vary between different models, and because these models rely on statistical patterns, finding the most effective prompt often requires experimentation. Iteratively refining your prompts based on the responses you receive can help you better understand how to communicate with the model to achieve your desired outcome.”

The Anatomy of a Prompt

Crafting an effective prompt for an LLM app involves a balance of clarity, specificity, and context. While there isn’t a one-size-fits-all template, understanding the components of a prompt can significantly enhance the performance of LLM-based applications. Below, we break down the anatomy of a typical LLM prompt, which serves as a guide for creating efficient and effective interactions.

Anatomy of an LLM Prompt


The context or background element of a prompt provides the LLM with the necessary information to generate relevant and accurate responses. This may include:

  • Historical Interaction: Data from previous interactions or chat history that helps the model understand the ongoing conversation or user preferences.
  • Retrieval-Augmented Information: Retrieval-Augmented Information involves pulling relevant data from external sources, utilizing advanced techniques such as Retrieval Augmented Generation (RAG). This method improves LLM response accuracy and relevance by integrating up-to-date information from vector databases. These databases store data as vectors, which RAG uses to efficiently query and retrieve contextually relevant information, enabling the system to produce more informed and precisely tailored answers.
  • Internal Data Access: For applications like AI banking agents, access to internal databases is important for example, to retrieve a user’s account balance or recent transactions and enable personalized financial advice.


Instructions delineate what the LLM is expected to do with the given context. This section of the prompt should clearly outline:

  • Task Definition: A direct explanation of the task at hand, whether it’s answering a question, writing a piece of content, or performing an analysis.
  • Methodology Details: Specific directives on how the LLM should use the provided context to execute the task. This might include instructions on prioritizing certain types of information or handling ambiguities.

Input Data

Input data can vary greatly depending on the application and specific use case but generally includes:

  • User-Generated Queries: Questions or commands from users that initiate the LLM’s task.
  • Enriched Information: Additional details that enhance the user’s input, such as data pulled from external databases or the internet, to provide a richer context.

This component ensures that the LLM has all the necessary details to understand the query fully and respond appropriately.

Output Indicator

The output indicator guides the LLM on how to format its response and align the output with user expectations or system requirements. Examples include:

  • Response Format: Whether the response should be a conversational reply, a formal report, or structured data such as a JSON object.
  • Field Specifications: In cases where the output is data-driven, specific instructions on which fields to populate and the format of those fields.

In production environments, prompt management often incorporates additional layers of complexity to enable:

  • Model-Specific Context: Information about the AI model used (e.g., Llama 3, GPT-4) which can influence how prompts are structured based on the model’s known capabilities and limitations.
  • Model Settings: Parameters like temperature or max tokens, which adjust the creativity or length of the LLM’s responses.

What is Prompt Management?

At its core, prompt management for production-level large language models (LLMs) involves setting up a streamlined system to manage the queries and instructions that are input into language models. Think of it as organizing a digital library where, instead of books, you’re efficiently cataloging and overseeing prompts.

Prompt management involves a series of practices designed to optimize the handling of LLM prompts within an application. It focuses on making prompts versionable, decoupled from the application’s core code and deployments, and easily traceable from a request perspective. Additionally, given that multiple stakeholders often collaborate on prompt development, it’s crucial to manage different versions of the same prompt and facilitate testing in a way that doesn’t disrupt the production environment. This setup supports a collaborative workspace where team members can work simultaneously and test prompts independently.

This framework borrows principles from traditional software development, adapting them to the unique aspects of LLM applications, which include other “codeable” elements that demand attention due to their specific characteristics.

Later in this article, we’ll dive deeper into each of these principles, but it’s also important to distinguish prompt management from prompt engineering. Prompt engineering is about the creative process of crafting prompts to maximize the effectiveness of each interaction with an LLM. It has its own set of practices and principles and is closely related to prompt management, which aligns more closely with traditional code or model management in machine learning, but ultimately they’re different concepts.

What are LLM Apps?

LLM apps, short for Large Language Model applications, utilize the power of Large Language Models (LLMs) to carry out a broad spectrum of tasks. LLMs are a sophisticated type of artificial intelligence developed using deep learning methodologies and vast datasets to comprehend, generate, and predict text. These models have revolutionized how we interact with and process digital information, offering capabilities that stretch from writing assistance to complex problem-solving.

LLM applications can be tailored for various purposes, including but not limited to:

Copywriting: Tools such as GPT-4, Mixtral, Claude, Llama 2, Cohere Command, and Jurassic are capable of generating original, engaging copy across different genres and formats. This capability is highly beneficial in marketing, advertising, and content creation.

Knowledge Base Answering: LLMs excel in fetching and synthesizing information from extensive databases to answer queries, making them invaluable in customer support and research.

Conversational AI: The integration of LLMs in virtual assistants like Alexa, Google Assistant, and Siri enhances their understanding and responsiveness, making these devices more helpful and intuitive for users.

The application of LLMs spans a variety of business domains, increasingly being seen as a tool to diminish tedious tasks, augment customer interactions through smarter chatbots, and streamline content creation processes.

The versatility of LLMs has opened up a multitude of promising applications across different sectors:

  • AI Assistant: Beyond simple task management, LLM-powered AI assistants are becoming more adept at understanding complex user intents and providing precise, context-aware responses, thus enhancing user experience in personal and professional contexts.
  • Content Creation: Notable examples include The Washington Post’s Heliograf, which autonomously generates content, allowing human journalists to focus on more nuanced reporting. Similarly, in the insurance sector, companies like Lemonade utilize LLMs for more accurate and efficient underwriting and claim processing.
  • Chatbots: Revolutionizing customer support, LLM-equipped chatbots like Autodesk’s Watson Assistant offer real-time, personalized user interactions, significantly enhancing customer service operations by reducing response times and operational costs.
  • Programming and Gaming: In the gaming world, LLMs contribute to content creation such as narrative development, level design, and in-game dialogue, enriching player experience and streamlining development processes.
  • Educational Tools: In educational settings, LLMs aid in creating simulated environments for training purposes, such as in healthcare, where they help professionals practice without risk to real patients.
  • Data Interaction: ‘Talk-to-your-data’ features enable LLMs to analyze vast datasets, recognize patterns, and offer insights or recommendations, a function that is increasingly valuable in sectors like finance and retail.

The development and deployment of LLM apps require collaborative efforts involving engineers, conversational designers, data scientists, and product managers, all working together to harness the potential of LLM technologies in innovative and effective ways. As these models continue to evolve, so too will their applications, potentially transforming how businesses operate and how individuals interact with digital content and services.

The performance and effectiveness of LLM apps largely depend on the underlying model, the quality and breadth of the training data, and the specific fine-tuning applied to tailor the model for particular tasks or industries. This customization is critical as it directly influences how well an LLM app can perform its intended functions.


Best Practices for Managing LLM Prompts

Here, we’ll explore some essential best practices that will help you maintain control over your prompts and optimize your interactions with LLMs.

Keep a Change Log‍

Even without a dedicated LLM platform, it’s essential to keep track of your prompt changes. A simple method is to store each version of a prompt in your Git repository. This isn’t the most sophisticated approach since it ties prompt updates directly to your app deployments, and you might need to give various team members like domain experts or prompt engineers access to your repo. However, this strategy does enable you to revert to previous versions easily, which can be handy for debugging or understanding past issues.

Decouple Prompts from Application Code‍

For better security and access control, consider keeping your prompts in a separate repository from your application code. This way, you can manage access to prompts without exposing your entire codebase, making it easier to control who can see and edit these critical elements.

Modularize Prompts‍

Think of prompts as building blocks. By designing reusable components and utilizing interpolated variables, you can keep your prompts flexible and easy to update. This modular approach not only saves time but also helps maintain consistency across different parts of your application.

Monitor Usage and Costs‍

Costs can creep up quickly with LLMs, especially if you’re using a third-party provider. Remember, you’re often charged based on the number of tokens processed, so longer prompts and more verbose outputs mean higher costs. Keeping an eye on how much you’re using-and spending-is crucial to keeping your project on budget.

Regularly Evaluate Prompt Effectiveness

A prompt that works well with one LLM model might not perform as strongly with another. To ensure your prompts are delivering the desired results, it’s important to set up a comprehensive tracking system. This system should capture not only the prompts themselves but also inputs, outputs, and detailed metadata such as the LLM version and its configuration settings. Having this information allows you to analyze performance across different scenarios and models. This tracking can be achieved through logging data to a database or an analytics platform, providing a robust foundation for evaluating the effectiveness of each prompt. With these insights, you can continuously refine your prompts, ensuring they align well with your LLM’s capabilities and your application’s needs.

Why Implement Prompt Management Tools?

Prompt management tools solve several practical problems in deploying LLMs in production environments:

Version Control: Just like software code, prompts can be versioned and managed to ensure that only the most effective and tested prompts are in use. This separation from application deployment means updates to prompts don’t necessitate redeployment of the entire application.

Collaboration & Access Control: These tools allow various stakeholders, including project managers, developers, and domain experts, to test and deploy prompts independently of the core application and pipeline systems. They can interact through their preferred interfaces, such as UIs or SDKs.

Integration and Traceability: A robust prompt management system integrates with the broader model infrastructure, including model calls and input/output storage. This setup not only supports the direct operational needs but also aids in comprehensive evaluation through tracing all relevant details about a model interaction — from user input to model behavior and output.

LLM Apps Prompt Management Requirements

3 Popular LLM Apps Tools for Prompt Management

In this comparison, we delve into three widely used tools that specialize in managing prompts for large language model (LLM) applications. While these tools are listed in no specific order, each offers unique strengths that may make it particularly suited for different development needs. All tools provide Python SDKs among other utilities, improving their accessibility and integration capabilities. Let’s explore what sets each tool apart and where they might best be applied in the landscape of LLM app development.

1. Langchain

LangChain is an open-source framework designed to facilitate the creation of applications powered by large language models (LLMs). It functions as a comprehensive suite of components, helping developers deploy LLM-based applications more efficiently. The framework is especially geared towards building chain-of-thought reasoning applications, which require a model to undertake multi-step reasoning or workflows to deliver solutions or answers.

One of LangChain’s strengths is its focus on simplifying the development process and mitigating the complexity of embedding advanced AI language functionalities into both new and existing systems. It provides a robust set of tools that manage the interaction between various application components and the LLM, including API call management, multi-step logic orchestration, and optimized utilization of LLMs in intricate scenarios.


The framework offers modular components that are essential in constructing more complex LLM applications, such as chatbots, Q&A systems, and more. These components are categorized into core modules:

Model I/O: LangChain supports a unified API that accommodates various LLM providers like OpenAI, Google, and others, enabling seamless switching and integration. It enhances model interaction through prompt templates and example selectors, which simplify the crafting of prompts, and output parsers that aid in interpreting the responses from LLMs. Additionally, LangChain integrates with caching solutions like Redis to cache LLM calls, which optimizes response times and resource usage, although it lacks advanced tools for tracking token expenditure.

Retrieval: This module improves the grounding of model responses by managing user data through document loaders, text splitters, and embedding models. It stores data in vector stores and retrieves it as needed to support Retrieval-Augmented Generation (RAG), enhancing the relevance and accuracy of model outputs.

Composition Tools: LangChain introduces Agents and Chains to construct dynamic or fixed workflows. Agents act as bots using LLMs to determine the most appropriate tools or actions for a given task, providing flexibility in real-time decision-making. Chains, in contrast, represent predetermined workflows that incorporate multiple steps such as data retrieval, prompt processing, and more.

LangChain is designed as a predominantly stateless system, allowing each query to be processed independently for maximum flexibility. To complement this architecture, LangChain includes robust integrations with in-memory libraries and data stores, such as Redis. These integrations not only enhance performance by caching LLM calls but also enable the Memory module to effectively memorize chat history for chat models. This ensures that continuity and context are maintained over interactions, natively supporting multi-turn conversations.

Source — Langchain Core Concepts

LangChain also includes the LangChain Expression Language (LCEL), which developers use to compose different components effectively. However, the framework’s extensive abstraction can complicate debugging efforts, making it challenging to trace and understand underlying processes. Furthermore, the reliance on LLMs for decision-making in Agents can occasionally slow down application performance, although it may improve accuracy.

To enhance observability and management in production environments, LangChain has introduced LangSmith. This addition aims to fill the gaps in monitoring and optimizing LLM applications during their lifecycle.

While LangChain excels in developing LLM applications, it does not provide comprehensive tools for prompt evaluation, workflow analysis, or detailed model usage and cost tracking. As such, while it offers a powerful environment for development, it may present challenges for those seeking an all-inclusive tool for both development and production needs, especially for newcomers navigating its complex ecosystem and specialized expression language.

2. Humanloop

Humanloop is a versatile development platform designed to streamline the collaborative efforts of teams working on large language models (LLMs). It offers a robust environment where you can manage, iterate, and refine prompts and models throughout both the development and production phases. This platform is equipped with tools that support continuous improvement and operational efficiency in deploying AI applications.

The platform includes both a Python SDK and a user interface that simplify interactions and development processes associated with LLM applications. It supports deployment of chatbots and other AI-driven applications across various cloud environments, and enables version control as well as multi-environment deployments, including staging and production.

One of Humanloop’s notable features is its ability to conduct A/B testing on different model configurations or prompts directly within deployed applications. This functionality allows developers to gather user feedback on different variations to identify the most effective configurations.

Key Features of Humanloop:

Prompts: At its core, Humanloop excels in prompt management. Developers can create detailed prompts using the Python SDK or through the UI, adding rich metadata like model configurations and interpolated variables. These prompts can then be activated via models, which serve as API endpoints within specified environments.

Models: In Humanloop, a model acts as an operational deployment that can be queried by users. It functions as an API endpoint that interacts with various prompts and configurations, enabling real-time data processing and response generation.

Tools: Humanloop enhances prompt functionality by allowing the integration of specialized functions. These tools can perform tasks like data retrieval from vector databases or executing external API calls, which are then seamlessly incorporated into prompts before they are processed by LLMs. This integration supports advanced functionalities like semantic searches through third-party services such as Pinecone and Google.

Datasets: The platform automatically collects and stores data from user interactions, including inputs defined in prompts and the corresponding outputs from models. These datasets are crucial for monitoring performance and are also available for testing, which is important for maintaining deployment accuracy.

Evaluators: Humanloop provides a flexible framework for evaluating the effectiveness of prompts and models. Evaluators can be custom Python functions or other LLMs that assess responses against predefined criteria. This feature is great for continuous improvement, allowing teams to refine their applications based on real-world data and feedback.

Overall, Humanloop offers a comprehensive suite of tools that empower developers to build, deploy, and refine AI-driven applications more effectively. Its integrated approach to managing prompts, models, and data enhances the development lifecycle but also ensures that deployed solutions are both effective and user-centric.

3. Langfuse

Langfuse is an open-source platform that emerges as a valuable tool for developers looking to enhance observability and analytics in their large language model (LLM) applications. While it’s relatively newer compared to established tools like Langchain, Langfuse brings a promising suite of features tailored for deploying LLM applications efficiently and cost-effectively. A significant advantage is its support for self-hosting, which offers flexibility for developers working within different infrastructure constraints.

Core capabilities of Langfuse:

Prompt Management: One of the standout features of Langfuse is its robust prompt management system. This system allows developers to log, version, tag, and label prompts within a repository. It also supports compiling these prompts against user inputs, which is integral for maintaining prompt relevance and effectiveness over time. Each prompt is linked with detailed metadata, including the model type and version, which enriches its integration with the underlying model infrastructure.

Developers can test prompts in real-time using the Prompt Playground-a feature that enables running prompts live against a selected range of model providers. This capability not only helps in immediate validation but also facilitates comparisons between different prompts to determine the most effective ones.

Furthermore, Langfuse offers flexibility in how prompts are utilized; they can be exported in various formats for use on other platforms, enhancing interoperability and flexibility. In addition to managing and testing prompts, Langfuse allows the creation of datasets from application request data. This data is great for further testing, fine-tuning models, or enhancing prompt evaluations.

Request Tracing: Langfuse excels in providing detailed observability of LLM API calls. The platform enables tracing each request on a per-operation basis, revealing the complete journey of the request including all interactions with vector databases and embedding models. This granular visibility is crucial for debugging and fine-tuning LLM application workflows, making it easier for developers to identify and resolve issues swiftly.

Data Utilization and Monitoring: The platform also monitors metrics related to LLM usage and costs, which are important for maintaining budget-friendly operations. Developers can evaluate the quality of prompt outputs based on various criteria such as model evaluations, manual scoring, or user feedback, with results conveniently displayed through intuitive charts on the Langfuse dashboard.

Langfuse extends its functionality through API endpoints, allowing developers to export data not just through an SDK but also directly via APIs.

Langfuse offers a comprehensive toolkit that bridges the gap between LLM application development and production readiness. Its combination of prompt management, request tracing, and robust data analysis tools makes it an appealing choice for those seeking to enhance the performance and observability of their LLM applications. To explore more about Langfuse, including detailed documentation and user support, visit their official website or documentation pages.

Closing Thoughts

In this article, we’ve discussed how prompt management forms an integral part of modern LLM applications, marking a distinct approach compared to traditional software or machine learning model development.

Prompts are central to LLM applications, holding all necessary details such as LLM calls, context, metadata, and more. We’ve learned about the importance of developing evaluation methods to test and monitor deployments effectively. Depending on the application, prompts might also need to interact with a vector store for added context or integrate third-party services-for instance, fetching account balances for banking applications.

We also explored various popular tools for managing LLM prompts and noted how they differ.

If you’re considering deploying your own LLM applications, we’d love to connect. Qwak is gearing up for the launch of its LLMOps platform. Visit our website to learn more about how you can get involved.

Originally published at https://www.qwak.com.



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