AI & Machine Learning
Business Insiderabout 4 hours ago
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The next step in AI cost saving: treating frontier models like expensive consultants

AI

AI consultants advise treating expensive frontier models like advisors for complex planning, while delegating execution to cheaper models to cut costs. This strategy is gaining traction as companies focus on AI ROI.

The next step in AI cost saving: treating frontier models like expensive consultants

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The Big Picture
AI consultants are recommending that companies treat frontier AI models, such as Anthropic's Fable 5, as expensive consultants or advisors, using them only for complex thinking and planning, while delegating execution tasks to cheaper, smaller models. This approach, endorsed by experts like Ameya Kanitkar of Larridin and Michael Murphy of Adaptovate, aims to maximize ROI on AI spending. Industry leaders like Coinbase CEO Brian Armstrong also predict a shift toward cheaper models for most workloads. As companies move away from tokenmaxxing and become more cost-conscious, model routing and cost-saving strategies are gaining popularity, with startups like OpenRouter and Concentrate AI attracting significant investment.
Why It Matters
This shift marks a maturation of enterprise AI strategy, moving from indiscriminate token burning to a cost-conscious, tiered approach where frontier models are reserved for high-value reasoning and cheaper models handle routine execution. As AI spending comes under CFO scrutiny, this consultant-style delegation could become the standard for maximizing ROI, potentially reshaping how companies allocate AI budgets and driving demand for model-routing tools that optimize cost and performance.

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Branding for Claude Code on removable posters at Anthropic PBC's Code with Claude developer conference in London, UK, on Tuesday, May 19, 2026.
Branding for Claude Code on removable posters at Anthropic PBC
AI consultants say it's time to treat frontier models like pricey consultants.

Bloomberg/Getty Images

  • If you find yourself always maxing out your AI token budget, AI consultants have a tip.
  • They said frontier models should be thought of as advisors or consultants.
  • Letting them do the complex thinking and planning, and none of the execution, is the key to saving.

Getting good returns on AI spending is the hottest enterprise topic of the day, and AI consultants have a neat cost-saving hack.

Business Insider has reported extensively about how users should route their tasks to the right AI models to get the best bang for their buck. But AI consultants are going one step further in the AI efficiency discussion, saying that the most expensive frontier models should be treated like the expensive consultants and advisors they are.

"You wouldn't use the most expensive lawyer for filing some routine things that less expensive lawyers can," said Ameya Kanitkar, the CTO of the San Francisco-based AI measurement platform Larridin.

Speaking to Business Insider in July, Kanitkar said models like Fable 5, the most powerful and token-burning model from Anthropic, should be used to create a road map of workflows, while cheaper and smaller models should execute them.

"The advisory model basically plans things, breaks down the problems into smaller sets, and has the complete context of how everything's going to work," he said. "And then sub-tasks are delegated to cheaper models."

Larridin advises companies on their AI use, giving them visibility into how effectively their employees are using AI tools and how to achieve greater ROI from their AI spend.

Lightweight models should do the heavy-lifting

In the same spirit, Michael Murphy, a partner at the Sydney-based AI transformation consultancy Adaptovate, said it's not a great use of company dollars to send "the most powerful model out there to do something that's replacing a Google check or transcribing meeting minutes or creating a creative brief."

Murphy said frontier models should be used to strategize, create the initial builds of a new app or website, or tasks that require complex thinking. Then, companies should figure out which "lightweight flashlight models" are most appropriate for day-to-day tasks, he said.

It's not just consultants who are vouching for this tactic — industry leaders have also talked about the idea of using frontier models as advisors.

In an X post in June, Coinbase CEO Brian Armstrong said he anticipated that "80% of workloads will be running on 99% cheaper models within 12-18 months."

The best models should be kept for "IQ maxxing," he said, such as scientific breakthroughs or agent orchestration.

AI ROI is a hot priority for executives

Cost-saving tactics like these are becoming more popular as companies become increasingly concerned about not getting proportional returns on their AI spending.

Many have abandoned tokenmaxxing, a trend in which companies gave their employees free rein to experiment with AI, urging them to burn as many tokens as possible. Some, like Duolingo, even made AI usage a performance metric.

Now, companies are being more conservative, thinking about how to get the most value out of their spend.

Several budget hacks have emerged, such as model routing or using open-source Chinese models like Moonshot AI's Kimi K3 or Z.ai's GLM-5.2.

A new wave of startups is cashing in on AI ROI, becoming a C-suite priority. The startups, known as AI-routing companies that help steer developers toward different AI models and monitor for overspending, are becoming investor favorites.

New York-based startup OpenRouter announced in May that it had raised $113 million, valuing the company at $1.3 billion. And Business Insider was the first to report that OpenRouter's competitor, Concentrate AI, had secured more than $5 million in funding.

Read the original article on Business Insider
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