Cost Optimization

Master strategies to reduce AI agent costs while maintaining performance quality

Choosing the Right Model

Model selection is the highest-leverage cost optimization. GPT-4 costs 20x more than GPT-3.5-turbo, but many tasks don't need GPT-4's capabilities. The key is matching model capability to task complexity—use the cheapest model that meets quality requirements.

Model Selection Strategy

Simple tasks (classification, extraction, formatting): Use GPT-3.5-turbo, Claude Haiku, or Gemini Pro
Moderate complexity (summarization, QA, basic reasoning): Use Claude Sonnet or GPT-3.5-turbo
Complex reasoning (multi-step analysis, code generation, creative writing): Use GPT-4 or Claude Opus
Cascade pattern: Try cheap model first, escalate to expensive only if quality insufficient

Interactive: Model Cost Calculator

Compare costs across different models for your use case:

Select up to 3 models to compare:
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Implement Model Cascading

Start with GPT-3.5-turbo for all requests. If quality is insufficient (detected via output validation or user feedback), retry with GPT-4. This "fast and cheap by default, smart when needed" approach reduces costs by 60-80% while maintaining high quality for complex tasks.

Introduction