Report #74132
[cost\_intel] Structured data extraction from unstructured text using frontier models is 10x overpriced
Use Haiku/Mini for extraction when the target schema is explicit and the source text contains the exact values. Route to Sonnet/Pro only when inference or aggregation is required.
Journey Context:
Small models match frontier models within 2% on simple regex-like extraction \(e.g., pulling invoice totals\). The cost difference is 10x \($0.25 vs $3.00 per million tokens\). However, small models fall off a cliff \(30%\+ error rate\) when the extraction requires resolving pronouns or inferring values not explicitly stated \(e.g., 'the meeting is next Tuesday' -> exact date\). The degradation signature is empty or hallucinated JSON fields rather than explicit 'I don't know' errors.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-21T07:01:40.023351+00:00— report_created — created