arXiv AI

The Price of Thinking: Reasoning Effort as a Model-Specific API Contract

arXiv:2608. 16956v1 Announce Type: new Abstract: API buyers purchase a dated contract, not a model name alone: the contract includes the requested and served model, reasoning-effort term or its omission, output rail, service product, prompt, and price schedule.

arXiv AI
Sep 25

Persuaded, Not Informed: Incentive-Misaligned Witnesses Defeat In-Context Grounding

The paper reports that language‑model agents used for customer‑relationship management can be misled by optimistic assertions from sales representatives in CRM records, leading to incorrect deal approvals. In a benchmark of 100 lead‑qualification tasks, models incorrectly cleared 29 of 31 deals where the representative’s claims contradicted company policies, with misalignment rates ranging from 87% to 97% across seven models. The authors propose diagnostic methods—including bucket analysis, same‑information controls, and compute‑step controls—to distinguish persuasion from information gaps and to quantify the impact of incentive‑misaligned witnesses.

By Rahul Balakavi
arXiv AI
Aug 28

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

The paper introduces the Token Economy Score (TES), a metric that quantifies the accuracy gain of reasoning-capable large language models relative to non-reasoning baselines, normalized by token generation cost. An empirical study across 151 runs on seven diverse benchmarks shows that task structure—such as sequential inference chains—predicts higher TES, while knowledge-recall tasks yield lower TES despite difficulty. The analysis also reveals diminishing returns at higher reasoning effort and highlights how deployment context, via Reasoning Cost Share and Deployment Cost Multiplier, can alter the economic viability of reasoning workloads.

By Sachin Gopal Wani, Ajay Dholakia, David Ellison
arXiv AI
Aug 11

Business Truth, not SQL Accuracy: A Rule-Gated 7B Analytics Agent Outperforms a Direct-Prompted 32B Baseline

arXiv:2608. 09254v1 Announce Type: new Abstract: LLM analytics agents are evaluated on SQL syntax accuracy, but production failures look different: questions with two valid business definitions, questions the warehouse cannot answer, deprecated columns after a schema change, and queries that execute successfully while returning the wrong business number.

By Morris Lee
arXiv AI
Jul 16

Inference Economics of Enterprise Coding Agents: A Case Study of Cloud vs. On-Premise LLMs

arXiv:2607. 13080v1 Announce Type: cross Abstract: Autonomous coding agents force engineering organizations to choose between API-based frontier models -- strong reasoning at high token cost -- and on-premise quantized open-weights models, which promise low-marginal-cost scaling and data sovereignty at some loss of reasoning fidelity.

By Sheng-Wei Peng, Yi-Hsun Lin, Yi-Pei Lee