The 5-step voice loop and why latency is the product
Every sentence the caller says round-trips through three models before the agent answers. If that trip takes two seconds, the caller hangs up.
Per turn: (1) the user speaks; (2) a transcriber converts speech to text; (3) the text goes to an LLM pre-prompted with a role; (4) the LLM returns text; (5) a text-to-speech model voices it. 'It does that full 5 step process in roundabout 1 second' - up to ~1.5. Latency is defined as the time between the user finishing and the agent replying; Retell shows it per agent, decomposed into ElevenLabs, GPT, and transcription shares (970-1300 ms on the demo).
Cost follows the same decomposition: ~11.5 cents/min = 0.7 cents TTS + 4.5 cents LLM (GPT-4.1) + platform; above ~3,500 prompt tokens the LLM share climbs (he has seen ~+5 cents). Hence: knowledge bases as separate documents, not pasted into the prompt. Three agent types: inbound, outbound, and 'interactive learning assistant' (his term for agents embedded in software or a device).
Every setting Matt recommends - pause, interruption sensitivity, filler phrases before function calls - exists to hide or shorten this loop.
Go deeper
In one line: Voice turn = STT -> LLM -> TTS in ~1-1.5 s; latency = user-stop to agent-speak; per-minute cost = TTS + LLM + platform, rising with prompt tokens.
Five steps per turn; ~1 to 1.5 seconds total (l3186035 0:20-0:21)
Latency = gap between user speech and agent reply; demo 970-1300 ms (l3186035 0:21, 0:58)
Cost example: 11.5 cents/min = 0.7 TTS + 4.5 LLM + platform; rises past ~3,500 tokens (l3186035 0:57-0:59)
'The longer your voice agent prompt the more expensive your voice agent is' (l3186035 0:42)
Agent types: inbound, outbound, embedded 'interactive learning assistant' (l3186035 0:22)
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