The LLM tax - why your AI agents are wasting tokens and how to stop it
AI is now the fastest-growing expense in corporate technology budgets, according to Deloitte. That's to be expected - businesses understand that the enterprise of the future is AI-driven, and they're ramping up their investments in this crucial transformation.
The problem is, companies aren't just spending more on AI. They're often spending more on AI than they should.
It's all too easy for businesses to treat large language models (LLMs) as universal decision-makers, rather than situationally appropriate tools, and watch their LLM token usage soar. Or, to put it another way, it's all too easy for businesses to risk an LLM making a bad decision – while paying for the privilege.
When an agent does (and doesn't) need to call an LLM
LLMs are probabilistic reasoning engines. When an AI agent needs to find the most likely correct answer using imperfect information (especially human language), an LLM can be hugely valuable....
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