Increasing the memory allocation for the Lambda function can result in improved CPU and network resources, which could decrease latency and improve the handling of larger image files. Smaller memory settings might constrain the CPU and I/O capabilities, causing delays in processing larger files. Changing the timeout setting does not address the root cause of the latency and increasing timeout could lead to more prolonged failure durations. Adding more layers to the function would not inherently improve performance; it could even increase complexity and overhead. Similarly, increasing concurrency controls how many events your Lambda function processes in parallel, not the processing speed or resources available for each event.