Report #59925
[cost\_intel] Overpaying for structured data extraction by using frontier models on simple schema compliance tasks
Use Claude 3.5 Haiku for structured extraction tasks where the schema is explicit and input is self-contained \(JSON, forms\); reserve Sonnet for extraction requiring implicit relationship reasoning or cross-document synthesis. Expect 10x cost reduction with <3% accuracy degradation on deterministic schemas.
Journey Context:
Engineers often default to Sonnet/GPT-4 for all 'complex' tasks including extraction, assuming schema compliance requires high reasoning. However, extraction is primarily a pattern-matching task. Haiku's smaller context window and faster inference actually reduce latency for high-volume pipelines. The failure mode for Haiku is not schema syntax but semantic inference: e.g., 'infer the department from email domain and reporting line' requires Sonnet. Benchmarking on your specific schema is essential because Haiku struggles with nested conditional logic \(if field A exists then field B must be type X\).
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T07:04:22.971418+00:00— report_created — created