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Model Economics

Model Routing: Balancing Quality, Latency, and Cost

8 min read • • INTELLIFY Engineering

One of the most common pitfalls in production AI deployments is routing every single request—from simple intent classification to complex reasoning—to the most expensive frontier model.

Tiered Routing Architecture

Incoming queries can be categorized by complexity: structured tasks and classifications are handled by lightweight, faster models at lower cost, while complex analytical queries escalate to larger frontier models. This tiered approach can lower operating costs while preserving quality.

Semantic Caching

By indexing previous responses with vector stores, frequently asked or semantically similar queries can be served instantly with lower latency and lower token consumption.

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