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cost-optimization

Browse 11 articles tagged with “cost-optimization”.

Articles tagged “cost-optimization

11 articles

A Branching Architecture Diagram Showing Customer Requests Being Classified and Routed to Different Model Tiers
Operations·14 min read

How LLM Routing Cuts Agent Costs 40-85% in Production

Most CX agents send every request to their priciest model. Routing simple queries to a cheap model cuts costs 40-85%, at 90-95% of single-model quality.

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A traffic routing diagram showing agent requests being split across multiple model tiers, with a small fraction escalating to the most expensive model
Operations·13 min read

Most of your agent traffic doesn't need your best model

Routing 100% of agent traffic to your most capable model is costing you 6-10x what it should. Here's how to build a cascade router that handles simple tasks cheaply and escalates to stronger models only when the task demands it.

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Two-tier agent architecture diagram showing a reasoning model planning a multi-step action sequence that a fast execution model then follows
Agent Architecture·12 min read

Reasoning models for CX agents: when to think slow, when to move fast

Extended thinking models improve decision quality for complex CX scenarios, but add 5-30 seconds of latency and cost 3-5x more. Here's the planning-execution architecture that gets you the benefit without the tradeoff.

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Dashboard showing three-tier evaluation sampling metrics for production AI agents
Testing & Evaluation·14 min read

Eval sampling for production agents: the 100/10/1 playbook

Running LLM-as-judge on every production conversation costs more than the agent itself. Here's the three-tier sampling system -- 100% lightweight heuristics, 10% LLM judge, 1% human review -- that keeps quality high without multiplying your eval bill.

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Abstract diagram showing cached tool call results flowing instantly back to an AI agent
Operations·14 min read read

Tool result caching: the latency and cost wins hiding in your stack

Your agent re-fetches the same data on every call. Tool result caching cuts latency by up to 70% and inference costs by 40-60% with changes that take days, not weeks. Here's how to classify, implement, and measure it.

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Watercolor Still-Life of a Steel Coin, Silver Disc, and Gold Token Spilling From a Velvet Pouch Onto Dark Wood — Three Cheap-Tier Models on the Table
Agent Architecture·14 min read read

Everyone Benchmarks Opus. Your Chatbot Runs on Haiku.

Haiku 4.5, GPT-5 Mini, Gemini Flash at the $1/MTok tier that powers CX. Tool-call accuracy, first-token latency, structured-output reliability, blended cost math.

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Three Routed Paths Splitting From a Single Customer Message, Each Labeled With a Different AI Model Tier
Agent Architecture·13 min read read

Your Agent Should Use Three Models, Not One

Production CX agents route tasks by difficulty, not brand loyalty. The planner/router/summarizer pattern, a concrete rubric, support-deflection cost math, and the failure modes nobody warns you about.

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Iceberg at Sea With Small Visible Tip Above Dark Water and Enormous Submerged Mass Glowing Amber — Visual Metaphor for Reasoning Tokens Hidden Below the Surface of Agent Responses
Operations·14 min read read

Reasoning Tokens Are Showing Up on the Bill

GPT-5 and Claude thinking tokens bill as output and stay invisible. A 200-token reply can hide 8,000 billable ones. How to measure, cap, and budget.

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Neural network distillation visualization showing a large teacher model transferring knowledge to a compact student model
Learning AI·16 min read

A 1B Model Just Matched the 70B. Here's How.

How to distill frontier LLMs into small, cheap models that retain 98% accuracy on agent tasks. The teacher-student pattern, NVIDIA's data flywheel, and the Plan-and-Execute architecture that cuts agent costs by 90%.

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Small chip outperforming a rack of servers
Learning AI·14 min read

Why Your AI Bill Is 30x Too High

Small language models match GPT-3.5 at 2% of the size and 95% less cost. Benchmarks, code, and a migration story from $13K/month to $400.

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Watercolor illustration of descending cost bars alongside token streams flowing through an optimization pipeline
Operations·16 min read read

Your AI Agent Costs $13K/Month. Here's the Fix.

A production customer-service agent burned $13,247 in one month. Prompt caching, model routing, batch processing, and plan-and-execute architecture cut it to $1,100. Real pricing math for every technique.

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