AI model costs can explode fast – and overpaying is common. The reality is, you don’t need GPT-4 for most business tasks like customer support, summarization, or data extraction. Switching to smaller AI models, smart routing, and techniques like RAG, caching, and prompt optimization, can cut GenAI costs by 10× or more. Done correctly, you can also preserve up to ~80% of performance.
This guide explains five practical strategies – model routing, prompt engineering, fine-tuning, retrieval, caching – to help you achieve cost-effective GenAI. Plus, learn a simple decision framework to apply them. By the end, you’ll know how