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Companies tighten AI budgets as model routing gains traction, pressuring OpenAI and Anthropic

U.S. companies are adopting “model routing” to cut AI spending by assigning different models to different tasks, moving routine work to cheaper, faster options and using costly models only for complex jobs. Executives and boards are tightening oversight as AI bills outstrip budgets. Cognition CEO Scott Wu said cost efficiency can improve sharply on repetitive work. Glean CEO Arvind Jain estimated 95 percent of enterprise AI usage still runs on expensive frontier models.