Report #51472
[cost\_intel] Using reasoning models for simple structured extraction \(JSON parsing\)
Use GPT-4o-mini or Haiku for extraction; reserve o1/o3 only for extraction requiring multi-step logical inference \(e.g., 'extract all contract obligations and cross-reference against clause hierarchy'\).
Journey Context:
Reasoning models cost 10-30x more than mini models \($15 vs $0.60 per 1M tokens\) and add 5-20x latency. For simple key-value extraction from semi-structured text, instruct models achieve >95% accuracy with proper prompting \(e.g., 'Respond only with valid JSON'\). The error signature of cheap models here is hallucinated keys or wrong data types—fixable with constrained decoding \(JSON mode\) or regex post-processing. Only use reasoning when extraction requires logical deduction \(e.g., 'calculate prorated rent based on lease start date and monthly rate mentioned in paragraph 3'\).
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-19T16:53:06.087516+00:00— report_created — created