Quality, latency and cost when choosing an AI model

Measure an accepted deliverable

First define minimum quality and errors that invalidate the result. Then measure end-to-end time, distinguishing first response from completion. Add tools, retrieval, caching, review and failures to the cost calculation. Use distributions and difficult cases when variability affects users; an average may hide important delays or errors.

A concrete example

For invoice extraction, calculate the cost of a validated record, not just a generated response. If an alternative needs many number corrections, that effort is part of its cost. In an interactive interface, an occasional long wait may matter more than a small average improvement.

What to check

Repeat comparisons with the same samples, versions and constraints. Separate published prices from infrastructure estimates and keep dates. Decide which variable can yield and which is a requirement: no universal weighting works for every product.

Criteria that change the decision

An aggregate score rarely tells the whole story.

QUALITY

Useful performance

Evaluate with your own tasks, relevant errors and repeatable conditions.

Evals OPERATION

Latency and reliability

Includes response times, limits, availability, and retries.

Production ECONOMY

Total cost

Tokens, tools, storage, review and maintenance.

TCO

ANALYSIS

Related analysis

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Keep exploring

SourcesStanford HELMcrfm.stanford.edu