Mental Models for the AI EconomyAI Economics
Your Business Probably Doesn't Need GPT-6
The fastest AI isn't always the best AI. Choosing a model should look like hiring an employee — matched to the job — not chasing the highest IQ score on a leaderboard.
There's a quiet assumption running through a lot of AI adoption right now: that the smartest available model is always the right choice. It shows up as teams routing every task — summarizing an email, categorizing an invoice, drafting a product description — through the same top-tier, top-dollar model they'd use for genuinely hard reasoning.
That's the same mistake as buying a Formula 1 car to drive to the grocery store. You don't hire a neurosurgeon to change your oil, and you don't need the world's most capable AI to sort invoices.
Match the model to the job, the way you'd match a hire
| Task | Best-fit AI choice |
|---|---|
| Summarize emails | Small, fast, inexpensive model |
| Rewrite product descriptions | Mid-tier model |
| Customer support (with good retrieval) | Small model + solid RAG |
| Legal contract review | Top-tier reasoning model |
| Software architecture decisions | Top-tier reasoning model |
| Brainstorming strategy | Top-tier reasoning model |
The pattern isn't "always use the best" or "always use the cheapest." It's fit for purpose — the same logic you already apply when staffing a team. You don't put your most senior architect on formatting spreadsheets, and you don't put an intern on a security-critical design review. It's the same shift from execution to judgment I wrote about in Autopilot Didn't Replace Pilots.
Latency and cost are features, not just constraints
This is the part that's easy to miss: for many real workflows, a response in half a second is better than one in fifteen seconds, even if the fifteen-second answer is marginally more polished. And a model that costs ten times less doesn't just save money — it can be the difference between using AI in one flagship feature and using it in every workflow across the business, because the economics finally allow it everywhere instead of only in the places that can absorb the cost.
Treat latency and cost as design inputs from day one, not afterthoughts you optimize once the bill arrives.
What this looks like in practice: model routing
Rather than picking one model for the whole business, mature AI systems increasingly route requests: cheap, fast models handle the high-volume routine work; the expensive, powerful model is reserved for the genuinely hard cases that justify its cost and latency. This is the same principle as a hospital triage system, or a support team that resolves most tickets at tier one and escalates the rare hard case to a specialist.
Designing that routing — deciding what's routine enough for a small model and what actually needs the frontier model — is quickly becoming a core AI-strategy skill, not a technical afterthought. It's also exactly the kind of measurement the Token Expenditure Index is built to make visible.
The point worth keeping
The goal was never to maximize AI intelligence. It's to maximize business value. The best AI for your business is the one that delivers the right answer, fast enough, at a cost that lets you actually use it everywhere you need it — not the one that tops a benchmark you'll never personally stress-test.
You probably don't need GPT-6 for most of what you're doing with AI today. You need the right model for the job, and the discipline to admit most jobs aren't the hard case.
Get the next essay the day it publishes.
A few a month, written from real builds. Unsubscribe in one click.

Performance marketing and search leader who builds — 15+ years in digital growth and product (AT&T/DirecTV, Microsoft, Employbridge, Site Impact), now running his own properties with AI. These essays are field notes from that loop: what AI actually changes about work, product, and the economics underneath. Based in South Florida.
- AI EconomicsWhen Code Is Cheap, What Still Protects a SaaS?
AI lets anyone clone a feature over a weekend. The moats that remain are data, workflow, distribution and trust—and you can audit yours in two minutes.
8 min read · interactive - AI EconomicsThe AI Subscription Bargain Has a Catch
A response to SemiAnalysis’s Anthropic-versus-OpenAI value study: why API-equivalent dollars, usable capacity, and accepted work are three different things.
7 min read · interactive - AI EconomicsAI Economics: The Cost of Work You Can Actually Use
Inference prices fall. Review, retries, and failures still compound. An interactive guide to the unit economics behind a useful AI outcome.
7 min read · interactive - AI EconomicsThe Social Media Strategy That Actually Builds a Funnel
Why social matters more in the AI era, how to pick two platforms, the cadence you can hold for a year, the three-pillar message system, and how to turn followers into an owned audience.
14 min read · interactive - Web & AI SearchInvisible. Found. Cited. — The Three States of Your Website
An interactive walkthrough of what your site is without SEO, with SEO, and with AI SEO — the data, the urgency, and the path up.
Interactive deck · 5 min - Web & AI SearchZero-Click Search: What to Measure When Nobody Clicks
58.5% of U.S. Google searches end without an open-web click, and AI summaries halve click rates. The metrics that replace sessions and rank.
8 min read