To Switch, or Not to Switch the AI Model

TL;DR: The Hidden Cost of Switching AI Models

A new AI model arrives that is cheaper per token, scores better on benchmarks, and seems to require nothing more than a setting change. However, the token bill shows only part of the cost of switching AI models. There is also the effort to check whether your workflows, for example, the one to create status reports for stakeholders, still produce outputs in line with your AI Definition of Done. More often than not, this task remains unaligned with the decision to switch AI models.

In the worst case, switching AI models behind a business workflow can raise operating costs despite cheaper tokens, because business cases can miss the revalidation effort.