Tokens or humans? The new corporate trade-off
The article discusses the inefficiencies in current AI technology and its impact on corporate costs. It highlights that many businesses are using expensive AI models for tasks that could be handled by cheaper alternatives, leading to unnecessary expenses. The piece suggests that optimizing model routing could significantly reduce costs and improve efficiency in AI usage.
- ▪AI technology is powerful but currently inefficient, leading to higher costs for businesses.
- ▪95% of enterprise AI usage relies on expensive frontier models, even for simpler tasks.
- ▪Optimizing model routing could achieve savings of up to 10 times by directing tasks to the most suitable models.
Opening excerpt (first ~120 words) tap to expand
The root of the squeeze is that the technology works but doesn't yet pay for itself. "The way AI works today, it's very powerful, but it's very inefficient," Jain said. "The value that AI drives at this point is trailing the cost that businesses are incurring." A big part of the problem is inefficiency in picking models. Roughly 95% of enterprise AI usage is still running on the most expensive frontier models, even for tasks that could be handled by cheaper alternatives, Jain said. There's a simple fix: routing the easy work to the cheaper tier. Jain said that's the lowest-hanging fruit.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
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