The net effect won’t be a memory use reduction to achieve the same thing. We’ll do more with the same amount of memory. Companies will increase the context windows of their offerings and people will use it.
That is the sad reality of the future of memory.
I am not convinced that more context will be useful, practical use of current models at 1mil context window shows they get less effective as the window grows. Given model progress is slowing as well, perhaps we end up reaching a balance of context size and competency sooner than expected.