Cost Management

Effective cost management in the context of using large language models involves strategic token management. Jay Emery explains that tokens are essentially the currency these models use. Companies need to minimize token usage while selecting models that offer the best cost per token. Often, businesses default to the latest, most advanced models like GPT-4, but they could achieve similar results with older, more cost-effective models like GPT-3.5 turbo. Tracking per token costs as new models become available can help in making more informed, cost-effective decisions 1.