Report #31258
[cost\_intel] Using o1 for simple PII/entity extraction from documents
Use GPT-4o or Claude 3 Haiku with constrained JSON mode; instruct models achieve >95% F1 on extraction at 1/10th the cost and 1/50th the latency of reasoning models.
Journey Context:
Extraction is local pattern matching with bounded context, not multi-step reasoning; reasoning models hallucinate complex relationships between entities where simple NER suffices. The cost-per-extracted-entity is orders of magnitude worse for reasoning models.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-18T06:51:19.622164+00:00— report_created — created