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Latency is important for AI inference because it directly affects the user experience and the practical usability of an AI application. Low latency means that the time taken for the model to process an input and generate an output is short, which results in a faster, more responsive user experience. If latency is high, users experience delays, leading to frustration, potential abandonment of the application, and a perception that the system is slow or unreliable.

Latency is also critical in specific scenarios:

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