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Written by Max Zeshut
Founder at Agentmelt
A parameter on Reasoning Model APIs that controls how much Test-Time Compute the model spends before answering — OpenAI o-series uses `reasoning_effort` (`low` / `medium` / `high`), Anthropic uses `thinking.budget_tokens`, Google Gemini uses `thinking_config.thinking_budget`. Higher effort improves accuracy on hard tasks but multiplies token cost and latency. The 2026 production discipline is *routing*: pick the reasoning-effort level per-turn based on task class (plan-time turns and irreversible-action turns high, execution and formatting turns low or off) rather than setting a global default. See our [reasoning-models pillar](/blog/reasoning-models-for-ai-agents-2026/).