đ§ Understanding the Core AI Model Types Before building a smart AI workflow, itâs essential to understand the three main categories of models:
Model Type Examples Best For Encoder-only BERT, DistilBERT Classification, entity recognition Decoder-only GPT-4.5, GPT-4o Text generation, summarization Encoder-Decoder BART, T5 Format conversion (e.g., text â JSON) Use the right model for the right jobâdonât overuse LLMs where smaller models will do.
𧞠Why Traditional Approaches Often Fall Short â LLM-Only (e.g., GPT-4.5 for everything) Expensive: GPT-4.5 API usage can cost $5â$15 per 1,000 tokens depending on tier. Resource-heavy for local deployment (requires GPUs). High risk if sending sensitive financial data to cloud APIs. Overkill for parsing emails or extracting numbers. â SaaS Automation Tools (e.g., QuickBooks AI, Dext) Limited transparency: You canât fine-tune or inspect the logic. Lack of custom workflow integration. Privacy concerns: Client data stored on external servers. Recurring subscription costs grow with team size. Often feature-rich but rigidâone-size-fits-all solutions. â
A Better Path: Modular, Privacy-First AI Workflow Using a combination of open-source models and selective LLM use, small firms can achieve automation that is cost-effective, privacy-preserving, and fully controllable.
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