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Cost-effectiveness becomes a competitive edge as AI cost-cutting techniques evolve

Companies are stepping up efforts to use AI more cost-effectively as usage grows and expenses weigh. Some are cutting AI costs by mixing cheaper models with high-performance systems from OpenAI and Anthropic, or by using routing software that selects models automatically. Others set limits on employee usage or restrict access to expensive models. Firms are also refining prompts to reduce “thinking” time. Open-source models, including Chinese ones, are gaining share.