Cutting our LLM bill ~80% with model routing: the actual cost math

A team found that they could slash their large language model (LLM) costs by around 80% by smartly routing requests to the most cost-effective model that still delivered the necessary performance. They initially used a single high-cost model for every request, only to realize the significant savings available from using a range of models with varying price points. This shift highlights the importance of optimizing model usage for cost efficiency, which has broader implications for how organizations manage AI expenses. Understanding these savings can help businesses make smarter choices about their tech spending.