We formalize the problem of prompt compression for large language models (LLMs) and present a framework to unify token-level prompt compression methods which create hard prompts for black-box models. We derive the distortion-rate function for this setup as a linear program, and provide an efficient algorithm to compute this fundamental limit via the dual of the linear program. Using the distortion-rate function as the baseline, we study the performance of existing compression schemes on a synthetic dataset consisting of prompts generated from a Markov chain, natural language queries, and their respective answers. Our empirical analysis demonstrates the criticality of query-aware prompt compression, where the compressor has knowledge of the downstream task/query for the black-box LLM. We show that there is a large gap between the performance of current prompt compression methods and the optimal strategy, and propose Adaptive QuerySelect, a query-aware, variable-rate adaptation of a prior work to close the gap.

We formalise the widespread idea of interpreting neural network decisions as an explicit optimisation problem in a rate-distortion framework. A set of input features is deemed relevant for a classification decision if the expected classifier score remains nearly constant when randomising the remaining features. We discuss the computational complexity of finding small sets of relevant features and show that the problem is complete for $\mathsf{NP}^\mathsf{PP}$, an important class of computational problems frequently arising in AI tasks. Furthermore, we show that it even remains $\mathsf{NP}$-hard to only approximate the optimal solution to within any non-trivial approximation factor. Finally, we consider a continuous problem relaxation and develop a heuristic solution strategy based on assumed density filtering for deep ReLU neural networks. We present numerical experiments for two image classification data sets where we outperform established methods in particular for sparse explanations of neural network decisions.

A distinctive property of human and animal intelligence is the ability to form abstractions by neglecting irrelevant information which allows to separate structure from noise. From an information theoretic point of view abstractions are desirable because they allow for very efficient information processing. In artificial systems abstractions are often implemented through computationally costly formations of groups or clusters. In this work we establish the relation between the free-energy framework for decision making and rate-distortion theory and demonstrate how the application of rate-distortion for decision-making leads to the emergence of abstractions. We argue that abstractions are induced due to a limit in information processing capacity.