Why Regulated Enterprises Need Risk-Tiered Model Routing
AI is getting cheaper at the same time that companies are spending more on it. That sounds contradictory, but it is one of the most important things happening in enterprise AI right now.
The price of processing a million tokens keeps falling, especially as open-weight models improve and compete aggressively on cost. At the same time, enterprises are moving from small pilots to always-on copilots, automated workflows and multi-step agents. Cheaper units make it easier to use more units.
For insurance and financial services, I think this changes the AI conversation in a useful way. The question is no longer which single model should win. The better question is which model should handle which kind of work, at what reliability level and under what governance rules.
Tokenomics Is Becoming a Real Operating Discipline
I use tokenomics to describe the economics of AI at the unit level. Every prompt, retrieved document,...
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