Report #61105
[cost\_intel] Using o1 for binary document classification at $0.10/document when GPT-4o-mini works at $0.0001/document
Use instruct models \(GPT-4o-mini/Claude Haiku\) for classification and simple extraction; deploy reasoning models only for multi-hop extraction requiring conflict resolution across document sections. The cost-per-document drops 1000x with <1% accuracy loss on simple classification.
Journey Context:
Classification is a shallow pattern-matching task. The cost delta is 1000x \($0.10 vs $0.0001\) for a 0.5% accuracy improvement—an ROI of $20 per additional correct classification. Reasoning models show value only when extraction requires logical deduction \(e.g., 'calculate the net amount considering the discount terms on page 2 applied to the subtotal on page 5'\).
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T09:02:59.261805+00:00— report_created — created