Inference refers to the process of using a trained machine learning model to make predictions or decisions based on new data. For example, when you interact with an AI system like ChatGPT, the model performs inference by processing your inputs in real-time to generate responses. Low latency is crucial in this context because it directly impacts the response time, which ensures a smooth & efficient user experience. High latency would result in noticeable delays, hindering the performance of real-time applications.