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Pricing and running AI products

When is a cheaper AI model good enough?

Cal Renshaw, , 1 minute read

A cheaper model is good enough for the inputs where it agrees with the strong one on your own past work, and where your check catches the times it doesn't. Find out by running it over 50 real inputs and reading every disagreement. Then route: cheap first, the strong model only when the check fails.

2 evenings, 50 documents

I sat in the spare room with 50 real documents, customers' details stripped out, and 2 columns of answers: the strong model I'd used since launch, and a much cheaper one from the same provider, with the same instructions and the same check.

I'd chosen the strong one by reputation. (It's how most people choose a model. It's also how most people choose a wine.) I expected the cheap one to be hopeless.

On most of the 50, the columns agreed exactly. On a few more, they differed in ways that didn't matter, like a middle initial my code formatted away anyway. The rest the cheap model got wrong, and those had something in common. They were long, and badly scanned: a page photographed at an angle, a fax of a fax, a coffee ring across the middle. (Real customers. Real coffee.)

Route on what you learned

So now every document goes to the cheap model first. The check runs. If it passes, that's the answer. If it fails, or the document is longer than a length I set from those 2 evenings, it goes to the strong model. Most documents never meet it. The hard ones still do.

It took an afternoon to write. The 2 evenings of reading were the part that mattered.

Read the disagreements

A match rate alone gives you 2 bad options: accept the cheap model's failures, or pay for the strong one on everything. Only reading the disagreements tells you why the cheap one fails, and the why is what lets you write the routing rule.

Who Pays for the AI? has the test and a worked example of the saving.

Questions

How do I know if a cheaper LLM is good enough?
Run it on 50 of your own past inputs beside the model you use now, and read every place they disagree.
What is model routing?
Sending work to a cheap model first and escalating to a stronger one only when a check fails or the input is a known hard case.
Is a match rate enough to choose a model?
No. It tells you how often the models differ, never why. The why is where the routing rule comes from.