PC-SubMax: Efficient Prompt Compression via Regularized Submodular Maximization

Abstract: While LLMs are increasingly deployed in long-context scenarios, lengthy prompts can increase inference costs and latency and exacerbate the ``lost-in-the-middle'' phenomenon. Selective prompt compression offers a model-agnostic approach to alleviating these issues. However, methods based on fixed token- or sentence-level importance scores may overlook how content contributions change with the selected subset, limiting their ability to account for inter-sentence redundancy. Compression procedures that rely on autoregressive LLM scoring can also introduce substantial overhead. We propose PC-SubMax, a theoretically grounded framework that formulates selective prompt compression as regularized monotone submodular maximization under a knapsack constraint. The objective is $U(S)-\ell(S)$, where the monotone submodular utility $U$ combines information coverage, query relevance, and log-determinant diversity, and the non-negative modular penalty $\ell$ captures token cost. Through diminishing marginal returns, the objective evaluates each sentence's contribution relative to the selected content. To optimize this objective, we develop the Regularized Greedy+Max (RGM) algorithm, which deterministically returns a feasible set $Q$ satisfying $U(Q)-\ell(Q)\geq \frac{1}{2}U(O)-\ell(O)$, where $O$ is an optimal feasible solution to the regularized problem. RGM uses $O(nκ)$ value-oracle queries, where $n$ is the number of candidate sentences and $κ$ is the maximum feasible subset size. PC-SubMax uses encoder representations and avoids autoregressive LLM scoring during compression. Experiments across seven diverse benchmarks demonstrate competitive downstream performance with low compression overhead.