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Written by Max Zeshut
Founder at Agentmelt · Last updated May 26, 2026
A system that dynamically selects which AI model to use for each request based on task complexity, latency requirements, and cost constraints. Instead of routing all requests to the most expensive frontier model, a model router sends simple tasks (FAQ answers, classification) to fast, cheap models and complex tasks (multi-step reasoning, code generation) to capable but expensive models. Model routing can reduce AI agent costs by 50–70% while maintaining quality.
A support agent processes 10,000 tickets per month. The model router classifies each ticket: password resets and account questions (70% of volume) route to Haiku ($0.001/ticket), product troubleshooting (25%) routes to Sonnet ($0.008/ticket), and complex escalations (5%) route to Opus ($0.03/ticket). Monthly LLM cost drops from $300 (all-Opus) to $25.