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Suboptimal Vertex Model Type
AI
Cloud Provider
GCP
Service Name
GCP Vertex AI
Inefficiency Type
Outdated Model Selection

Vertex AI model families evolve rapidly. New model versions (e.g., transitions within the Gemini family) frequently introduce improvements in efficiency, quality, and capability. When workloads continue using older, legacy, or deprecated models, they may consume more tokens, produce lower-quality results, or experience higher latency than necessary. Because generative workloads often scale quickly, even small efficiency gaps between generations can materially increase token consumption and cost. Teams that do not actively track model updates, or that set model types once and never revisit them, often miss opportunities to improve performance-per-dollar by upgrading to the most current supported model.

Suboptimal Bedrock Model Type
AI
Cloud Provider
AWS
Service Name
AWS Bedrock
Inefficiency Type
Outdated Model Selection

Bedrock’s model catalog evolves quickly as providers release new versions—such as successive Claude model families or updated Amazon Titan models. These newer models frequently offer improved performance, more efficient reasoning, better context handling, and higher-quality outputs compared to older generations. When workloads continue using older or deprecated models, they may require **more tokens**, experience **slower inference**, or miss out on accuracy improvements available in successor models. Because Bedrock bills per token or per inference unit, these inefficiencies can increase cost without adding value. Ensuring workloads align with the most suitable current-generation model improves both performance and cost-effectiveness.

Using High-Cost Models for Low-Complexity Tasks
AI
Cloud Provider
GCP
Service Name
GCP Vertex AI
Inefficiency Type
Overpowered Model Selection

Vertex AI workloads often include low-complexity tasks such as classification, routing, keyword extraction, metadata parsing, document triage, or summarization of short and simple text. These operations do **not** require the advanced multimodal reasoning or long-context capabilities of larger Gemini model tiers. When organizations default to a single high-end model (such as Gemini Ultra or Pro) across all applications, they incur elevated token costs for work that could be served efficiently by **Gemini Flash** or smaller task-optimized variants. This mismatch is a common pattern in early deployments where model selection is driven by convenience rather than workload-specific requirements. Over time, this creates unnecessary spend without delivering measurable value.

Using High-Cost Bedrock Models for Low-Complexity Tasks
AI
Cloud Provider
AWS
Service Name
AWS Bedrock
Inefficiency Type
Overpowered Model Selection

Many Bedrock workloads involve low-complexity tasks such as tagging, classification, routing, entity extraction, keyword detection, document triage, or lightweight summarization. These tasks **do not require** the advanced reasoning or generative capabilities of higher-cost models such as Claude 3 Opus or comparable premium models. When organizations default to a high-end model across all applications—or fail to periodically reassess model selection—they pay elevated costs for work that could be performed effectively by smaller, lower-cost models such as Claude Haiku or other compact model families. This inefficiency becomes more pronounced in high-volume, repetitive workloads where token counts scale quickly.

Suboptimal Cache Usage for Repetitive Bedrock Inference Workloads
AI
Cloud Provider
AWS
Service Name
AWS Bedrock
Inefficiency Type
Missing Caching Layer

Bedrock workloads commonly include repetitive inference patterns—such as classification results, prompt templates generating deterministic outputs, FAQ responses, document tagging, and other predictable or low-variability tasks. Without a caching strategy (API-layer cache, application cache, or hash-based prompt cache), these workloads repeatedly invoke the model and incur token costs for answers that do not change. Because Bedrock does not offer native inference caching, customers must implement caching externally. When no cache layer exists, cost increases linearly with repeated calls, even though responses remain constant. This issue appears most often when teams treat all workloads as dynamic or generative, rather than separating deterministic tasks from open-ended ones.

Suboptimal Cache Usage for Repetitive Azure OpenAI Workloads
AI
Cloud Provider
Azure
Service Name
Azure Cognitive Services
Inefficiency Type
Missing Caching Layer

A large share of production AI workloads include repetitive or static requests—such as classification labels, routing decisions, FAQ responses, metadata extraction, or deterministic prompt templates. Without a caching layer, every repeated request is sent to the model, incurring full token charges and increasing latency. Azure OpenAI does not provide native caching, so teams must implement caching at the application or API gateway layer. When caching is absent, workloads repeatedly spend tokens for identical outputs, creating avoidable cost. This inefficiency often arises when teams optimize only for correctness—not cost—and default to calling the model for every invocation regardless of whether the response is predictable.

Always-On PTUs for Seasonal or Cyclical Azure OpenAI Workloads
AI
Cloud Provider
Azure
Service Name
Azure Cognitive Services
Inefficiency Type
Unnecessary Continuous Provisioning

Many Azure OpenAI workloads—such as reporting pipelines, marketing workflows, batch inference jobs, or time-bound customer interactions—only run during specific periods. When PTUs remain fully provisioned 24/7, organizations incur continuous fixed cost even during extended idle time. Although Azure does not offer native PTU scheduling, teams can use automation to provision and deprovision PTUs based on predictable cycles. This allows them to retain performance during peak windows while reducing cost during low-activity periods.

Non-Production Azure OpenAI Deployments Using PTUs Instead of PAYG
AI
Cloud Provider
Azure
Service Name
Azure Cognitive Services
Inefficiency Type
Misaligned Pricing Model

Development, testing, QA, and sandbox environments rarely have the steady, predictable traffic patterns needed to justify PTU deployments. These workloads often run intermittently, with lower throughput and shorter usage windows. When PTUs are assigned to such environments, the fixed hourly billing generates continuous cost with little utilization. Switching non-production workloads to PAYG aligns cost with actual usage and eliminates the overhead of managing PTU quota in low-stakes environments.

Underutilized PTU Quota for Azure OpenAI Deployments
AI
Cloud Provider
Azure
Service Name
Azure Cognitive Services
Inefficiency Type
Overprovisioned Capacity Allocation

When organizations size PTU capacity based on peak expectations or early traffic projections, they often end up with more throughput than regularly required. If real-world usage plateaus below provisioned levels, a portion of the PTU capacity remains idle but still generates full spend each hour. This is especially common shortly after production launch or during adoption of newer GPT-4 class models, where early conservative sizing leads to long-term over-allocation. Rightsizing PTUs based on observed usage patterns ensures that capacity matches actual demand.

Suboptimal Bedrock Inference Profile Model
AI
Cloud Provider
AWS
Service Name
AWS Bedrock
Inefficiency Type
Outdated Model Selection

AWS frequently updates Bedrock with improved foundation models, offering higher quality and better cost efficiency. When workloads remain tied to older model versions, token consumption may increase, latency may be higher, and output quality may be lower. Using outdated models leads to avoidable operational costs, particularly for applications with consistent or high-volume inference activity. Regular modernization ensures applications take advantage of new model optimizations and pricing improvements.

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