The Reasoning Tax: Token Economics of LLM Reasoning Across Task Types and Deployment Contexts

Accuracy-only benchmarking of reasoning-capable large language models misses a central deployment question: when do extended thinking tokens earn their cost? We introduce the Token Economy Score (TES), a marginal benchmarking metric that measures the accuracy gain of a reasoning model over a non-reasoning baseline, normalized by the generated-token multiplier. We define paired and approximated TES variants for model families with reasoning toggles and frontier models without direct non-reasoning counterparts. We then conduct an empirical benchmarking analysis across 151 model-benchmark evaluation runs on seven benchmarks spanning mathematics, code generation, science reasoning, instruction following, expert knowledge, knowledge recall, and research-level physics. The analysis examines three deployment-facing dimensions: which task structures yield positive marginal reasoning efficiency, how increasing reasoning effort changes TES within model families, and how deployment context changes economic viability. Results show that task structure predicts reasoning efficiency better than nominal difficulty: sequential inferencechain tasks such as AIME 2025 and LiveCodeBench show high TES, while knowledge-recall tasks such as MMLU-Pro show low TES despite their difficulty. We also find systematic diminishing returns at higher reasoning effort levels, including cases where additional thinking reduces accuracy. Finally, Reasoning Cost Share (RCS) shows that inference spend is often dominated by internal thinking, while Deployment Cost Multiplier (DCM) shows how on-premises deployment can change the economics of otherwise costly reasoning workloads. These findings support a benchmarking-driven model-selection rule: enable reasoning selectively by task type, effort level, and deployment context rather than treating it as a universally beneficial mode.

FrugalSOT - Frugal Search Over the Models

In on-device NLP tasks, limited resources of embedded hardware, such as the Raspberry Pi 5, require efficient inference strategies. This paper introduces FrugalSOT (Frugal Search Over The Models), a resource-aware model selection architecture for on-device NLP inference. FrugalSOT estimates each request's complexity by extracting features such as prompt length, named entity density, and syntactic complexity. The request is first made to the least complex model that is likely to pass a relevance threshold. If the output of that model falls short of the threshold, the request is made to a more complex model. It is important to note that the relevance threshold undergoes continuous updates in the background. using past validation outcomes in an adaptation process using a low-pass filtering mechanism, thus imparting adaptation to changing input patterns. Experimental results achieved on a Raspberry Pi 5 show that FrugalSOT reduces average inference time and overall computational resource use to a significant extent compared to a single-model baseline approach, without compromising output relevance to the same extent as the most sophisticated model. These results confirm that adaptive model selection can enable efficient, high-quality natural language processing inference on limited devices.

Efficient Neural Network Model Selection for Few-Class Application Datasets

While much effort has focused on developing and benchmarking high-performance neural networks, less attention has been given to how dataset properties, known to practitioners, can guide efficient model selection. Neural models are typically evaluated on datasets with thousands of classes, yet many real-world applications involve fewer than ten. To address this understudied but common setting, we develop a measure of classification difficulty based on data-side properties and show how it enables more efficient model selection for few-class datasets, where traditional approaches are less effective. We term this phenomenon "few-class distinctiveness". Our metric allows comparison of models and datasets 6 to 29$\times$ faster than repeated training and testing. Leveraging this insight, we extend scaled model families below the smallest published models, achieving greater efficiency at similar accuracy, for example models up to 42% smaller than YOLOv5-nano for a mobile robot task. Targeting resource-constrained applications, we demonstrate few-class model selection across mobile robot, drone, and IoT scenarios, highlighting practical gains in efficiency without sacrificing performance.

PLAIground: SLO-Driven Runtime Model Selection for Compound AI Systems in the Edge-Cloud-Space Continuum

Applications in the 3D Computing Continuum, which unifies edge, cloud, and space, require combining multiple AI tasks such as object detection, time-series analytics, and natural language processing into Compound AI systems. These systems must satisfy stringent Service Level Objectives (SLOs) on accuracy, latency, and cost. A key mechanism for maintaining SLO compliance of Compound AI systems is runtime model selection, where AI models are dynamically switched for each workflow task. However, existing distributed and compound AI frameworks do not natively support runtime model selection. We present PLAIground, a framework that enables runtime model selection for Compound AI systems. PLAIground introduces Compoundable AI Model (CAIM) abstraction, which decouples task semantics from AI model implementations via Task and Data Contracts, enabling model switching without workflow changes. Additionally, PLAIground introduces Pixie, an SLO-driven runtime model selection algorithm, which dynamically selects the most suitable model for each task during execution. Our evaluation on two realistic Compound AI workflows demonstrates that Pixie achieves up to 91.3% accuracy while maintaining SLO compliance where fixed-model strategies either violate cost and latency budgets up to 21x or miss accuracy targets by 4%.