Report #91858
[cost\_intel] Using o1/o3 for standard RAG retrieval-augmented generation on corporate knowledge bases
Use GPT-4o or Claude 3.5 Sonnet with hybrid search \(dense \+ lexical\); reasoning models show <3% improvement on Natural Questions \(NQ\) or TriviaQA but increase cost 15x and latency 10x, destroying ROI for enterprise search
Journey Context:
RAG is about retrieval precision, not reasoning complexity. If the context contains the answer, cheap models extract it fine. Reasoning helps only when multiple documents need synthesis across contradictory sources - standard RAG is single-document lookup. The cost curve is disastrous here.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-22T12:46:36.469203+00:00— report_created — created