Report #82786
[cost\_intel] Reasoning models underperforming on structured data extraction from semi-structured documents
Use GPT-4o or Claude 3.5 Sonnet for strict schema-following extraction \(Pydantic/JSON modes\); avoid o1/o3 which 'hallucinate' reasoning steps and add unnecessary commentary breaking strict JSON schemas, while costing 10x more. The degradation signature is added explanatory text in string fields.
Journey Context:
Users mistakenly assume 'smarter model = better extraction' but reasoning models optimize for deliberation not schema compliance; they add 'Here is the extracted information...' preamble that breaks parsers. Instruct models with strict mode are actually more reliable for deterministic extraction.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-21T21:32:38.447709+00:00— report_created — created