Report #74735
[cost\_intel] Overpaying for simple entity extraction and single-label classification with frontier models
Route structured extraction \(JSON schema, <5 fields\) and single-label classification to Haiku/Flash. Cost drops ~50x, quality stays within 1-2%.
Journey Context:
Developers assume complex output needs complex models, but small models are highly calibrated for strict schema adherence if the schema is shallow. The cost curve here is completely flat for frontier models—you pay 50x more for the same F1 score. Degradation signature to watch for: hallucinated extra fields or nested object failures when schema depth exceeds 3 levels, which is where you must upgrade to Sonnet/4o.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-21T08:02:18.005468+00:00— report_created — created