It’s no secret that larger LLMs are better at following wordier, more complex prompts — but there are limits, and you’re going to hit them sooner than you think. Because of the probabilistic and random nature of AI models, it might be difficult to notice at first, but the longer you make your prompts and the more instructions you give it, the more it will struggle to keep all of the assigned balls in the air. Even the largest models hit a cognitive wall**.** Recent research reveals just how fragile LLM performance becomes with complex prompts. A 2024 study on prompt formatting found that GPT-3.5-turbo's performance varies by up to 40% in a code translation task depending on the prompt template.

This isn't just about context length limits—it's about cognitive overload. When you pack 15 different tasks into a single prompt, you're essentially asking the model to be a writer, editor, fact-checker, researcher, and critic simultaneously. Just like humans struggle to juggle multiple complex tasks effectively, LLMs show dramatically reduced performance when handling competing or overlapping instructions in a single prompt. Additionally, different asks in a long list of tasks given to the LLM in a single prompt may activate competing attention mechanisms and end up stepping on each other's toes, even if they do not appear related on the surface. The solution to this is to simply call an LLM multiple times over the same tasks, providing different instructions each time to compartmentalize the tasks to individual prompts and ensure that each task gets the full attention it deserves.

A Fun Creative Writing Example To Illustrate

I want to highlight an excellent example of this in action - the ProsePolisher extension for Sillytavern, which solves a lot of the repetition and ‘slop’ endemic to LLM writing. (Reddit post, GitHub). Here’s a quick summary of how they wrote the ‘Project Gremlin’ part of the extension (quoting from their docs)

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1. Papa Gremlin (The Architect): He's the project lead. He reads the chat context and creates a high-level blueprint. "The character should feel betrayed, reveal a hidden object, and ask a pointed question."
2. The Twins - Vex & Vax (The Creative Consultants):* They get Papa's blueprint and inject raw creativity. Vex focuses on emotional depth and character moments ("Maybe his hand trembles as he reveals the object!"). Vax focuses on plot and action ("What if the object isn't what he thinks it is?")
3. Mama Gremlin (The Project Manager):* She's the supervisor. She takes Papa's solid plan and the Twins' chaotic ideas and synthesizes them into a single, polished, final blueprint. She's the essential quality control step, ensuring the final plan is coherent and respects all roleplaying rules.
4. Writer Gremlin aka Bob the Builder (The Lead Author):* He receives the final, approved blueprint from Mama. His only job is to execute that plan and write the actual prose for the response.
5. Auditor Gremlin (The Final Editor - Optional): For the true perfectionists. If enabled, the Auditor gets the Writer's finished prose and does one last line-edit, polishing it for grammar, flow, and impact before it appears in your chat.

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Why this works so well is it gives each agent a different task to do. If you were to combine all of the extended prompts into a single prompt, you would run into thousands and thousands of tokens for your prompt. Although we are now in the world of hundred-thousand to million token context windows, that doesn’t mean that performance is the same with 100k tokens as it is with 8k, as exemplified by benchmarks like LongBench v2. What you could potentially do, though, is give the earlier agents a higher level of context, but limit the final agent to 16 to 32k context as to not impact its performance more than needed, as the earlier agents will provide summaries and relevant information to the writer without having to unnecessarily feed it tens of thousands of tokens.

Taking it a step further, you could then consider fine-tuning several small models to give them relevant information specific to their task. If you wanted to use, say, a psychology fine-tuned LLM for considering how a character might think earlier in the process, you could use that step to drive output without worrying about polluting the weights of your model more than you have to, because you’re using several specialized, compartmentalized models instead.

Theoretical Foundations: Task Interference and Attention Mechanisms

The performance degradation observed in complex prompts aligns with established research on task interference in LLMs. Gupta et al. (2024) demonstrated that task-switches in conversational history lead to significant performance degradation across multiple datasets. Their experiments with 15 task switches across 5 datasets using popular LLMs revealed that many task-switches cause substantial performance drops, even when tasks appear unrelated.

This phenomenon mirrors cognitive interference observed in human working memory systems. Research on neural mechanisms of interference control shows that competing representations degrade performance when multiple tasks activate overlapping neural circuits. In LLMs, different instruction types may activate competing attention heads, creating similar interference patterns.

The Self-Refine framework formalizes this decomposition approach through a three-stage iterative process: Generator → Critic → Refiner. This basic pattern achieves approximately 20% improvement across diverse tasks without requiring supervised training data or reinforcement learning, validating the fundamental advantages of task specialization.

Model Size Optimization Strategies

Hardware requirements scale predictably across model sizes:

• 7B models: 14GB VRAM, optimal for initial processing and routing
• 13B models: 26GB VRAM, effective for intermediate analysis and reasoning
• 34B models: 68GB VRAM, often matching 70B performance on specialized tasks

The key insight involves right-sizing models to specific tasks rather than employing uniform model sizes across all stages. For example, if you’re running a chatbot service and you want a bot in the loop to cut the mic if something offensive or illegal is detected, you probably don’t need a massive 100B+ model for what is a pretty simple task.

Deployment Architecture: Serverless as the Optimal Platform

The decomposed nature of iterative refinement chains aligns particularly well with serverless deployment architectures, where the economic and operational advantages become especially pronounced. Unlike traditional always-on pod deployments, serverless platforms like RunPod Serverless provide natural cost optimization for multi-agent workflows.

Economic Efficiency Through Usage-Based Scaling: Iterative refinement chains exhibit highly variable compute patterns—intensive processing during active refinement stages followed by idle periods during user interaction or content review. Serverless architectures capitalize on this by charging only for actual inference time rather than maintaining persistent compute resources. This proves especially advantageous in multi-user environments where individual users may spend significant time reviewing outputs, typing responses, or considering revisions between processing stages. Traditional pod-based deployments incur costs during these idle periods, while serverless automatically scales to zero, eliminating waste.

Simplified Multi-Model Management: Managing multiple specialized models across different refinement stages becomes significantly more straightforward with serverless endpoints compared to managing multiple pods. Each agent in the refinement chain can be deployed as a separate endpoint, allowing independent scaling, versioning, and monitoring. This endpoint-based architecture eliminates the complexity of coordinating multiple GPU pods, handling inter-pod communication, and managing resource allocation across different model sizes. Developers can deploy a 7B model for initial processing, a 13B model for intermediate refinement, and a 34B model for final polishing, each automatically scaling based on demand without manual intervention.

Multi-User Scalability: The distributed nature of refinement chains maps naturally to serverless scaling patterns. When multiple users simultaneously initiate refinement workflows, serverless platforms can spawn parallel instances of each specialized model rather than queuing requests behind a single large model. This parallel execution reduces overall latency and improves user experience, particularly during peak usage periods. The automatic scaling behavior ensures that computational resources match actual demand without requiring capacity planning or resource provisioning overhead.

Here’s an example of what an orchestrator for this entire process might look like in code:‍


import requests
import asyncio

class RefinementChain:
    def __init__(self):
        self.endpoints = {
            'generator': 'https://api.runpod.ai/v2/refinement-generator/runsync',
            'critic': 'https://api.runpod.ai/v2/refinement-critic/runsync', 
            'polisher': 'https://api.runpod.ai/v2/refinement-polisher/runsync'
        }
        self.headers = {'Authorization': f'Bearer {RUNPOD_API_KEY}'}
    
    async def process_stage(self, endpoint_key, prompt, max_tokens=512):
        payload = {
            "input": {
                "prompt": prompt,
                "max_tokens": max_tokens,
                "temperature": 0.7
            }
        }
        
        response = requests.post(
            self.endpoints[endpoint_key], 
            json=payload, 
            headers=self.headers
        )
        return response.json()['output']['choices'][0]['text']
    
    async def refine_content(self, initial_prompt):
        # Stage 1: Generate initial content
        draft = await self.process_stage('generator', initial_prompt)
        
        # Stage 2: Analyze and provide feedback  
        critique_prompt = f"""
        Review this content for clarity, accuracy, and engagement:
        {draft}
        
        Provide specific feedback for improvement:
        """
        feedback = await self.process_stage('critic', critique_prompt)
        
        # Stage 3: Apply refinements
        polish_prompt = f"""
        Original content: {draft}
        Feedback: {feedback}
        
        Rewrite incorporating the feedback:
        """
        final_content = await self.process_stage('polisher', polish_prompt)
        
        return {
            'draft': draft,
            'feedback': feedback, 
            'final': final_content
        }

Conclusion

Iterative refinement chains using smaller language models represent a fundamental paradigm shift from monolithic prompting strategies toward specialized, coordinated AI systems. The evidence presented demonstrates that decomposed approaches not only achieve superior performance but do so while providing significant computational, economic, and operational advantages.

The theoretical foundations are robust: research on task interference, attention mechanisms, and cognitive load limitations shows that complex prompts inherently suffer from competing neural activations that degrade performance regardless of model size. The ProsePolisher case study illustrates how practical implementations can achieve sophisticated results through thoughtful task decomposition, while frameworks like Self-Refine provide the empirical validation with ~20% performance improvements across diverse benchmarks.

VRAM is also a consideration - even though MoE models like Deepseek can often give faster results than dense models, you still need terabytes of memory to get them off the ground at full weights. With a careful implementation of this process, it’s all but guaranteed that you’ll be able to get comparable results to a huge dense model with only a fraction of the parameters.