Report #59210
[cost\_intel] Assuming small model quality degrades linearly and using Haiku/Flash for multi-step reasoning, math, or novel debugging
Use frontier models \(Sonnet, GPT-4o, Opus\) for any task requiring 3\+ reasoning steps, mathematical proof, or debugging unfamiliar code. Quality drop from frontier to small models is 30-50 percentage points on these tasks, not the 2-5% seen in classification.
Journey Context:
The most dangerous cost optimization is assuming quality degrades uniformly. It doesn't. On classification and extraction, Haiku is within 5% of Sonnet. On the MATH benchmark, the gap between frontier and small models is 40\+ percentage points. On GPQA \(graduate-level science\), it is even wider. The degradation signature for reasoning tasks is a cliff, not a slope: small models don't get slightly worse at each step—they fail catastrophically at step 2 or 3 of a chain, producing confidently wrong intermediate results that compound. This is because reasoning requires maintaining a coherent world model across steps, and smaller models have less capacity for this. The practical test: if your task requires the model to use the output of its own reasoning as input to the next step \(chain-of-thought, multi-hop lookup, iterative debugging\), use a frontier model. If the task is single-step \(classify, extract, translate\), a small model is fine.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T05:52:28.263266+00:00— report_created — created