PulseExploreJournal ClubDebatesTrendingResearchersJournals
Instagram
HomeExploreJournal ClubTrending
Synapse
⌘+K
Synapse
February 16, 20260 citationsOpen Access

AI Economics: Model Selection Economics — The Hidden Cost-Performance Tradeoffs That Make or Break AI ROI

View Full Paper
OIOleh Ivchenko

Key Points

  • The paper aims to analyze the economic implications of selecting AI model architectures for enterprise use.
  • Examines various model architectures from linear regression to transformer networks
  • Analyzes total cost of ownership and inference economics
  • Considers organizational capacity for model deployment
  • In about 68% of cases, simpler models yield better economic results
  • Complex models do not always justify their higher costs in practical applications

Abstract

Model selection represents one of the most consequential economic decisions in enterprise AI deployment. This paper examines the economics of choosing between model architectures—from simple linear regression to complex transformer networks—through the lens of total cost of ownership, inference economics, and organizational capacity. Analysis reveals that in approximately 68% of enterprise use cases, simpler models deliver superior economic outcomes.

Ask AI
Helpful
Bookmark
Share
View Full Paper

Cite This Study

Oleh Ivchenko (2026) studied this question.

synapsesocial.com/papers/6992b4ad9b75e639e9b09a70https://doi.org/10.5281/zenodo.18629904
Ask AI
Helpful
Bookmark
Share
View Full Paper