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Choosing the Right AI Model: A Practical Guide

Choosing the Right AI Model: A Practical Guide
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    Bissam Al-Potros, Manager Advisory | Casey Tjokrohardjo, Director
    Published:
    August 1, 2025

    This blog kicks off a deeper dive into one of the most critical questions facing businesses today: how do you choose the right AI model? While we’ve previously explored how AI is revolutionizing industries and enabling inclusion, this post takes a more tactical lens – helping you navigate the expanding landscape of AI models with practical insight.

    In the absence of AGI (Artificial General Intelligence) or ASI (Artificial Super Intelligence) — the much-hyped “holy grails” of AI – we’re still in a world where model selection matters. Take Large Language Models (LLMs), for example: they’re excellent conversationalists, but may struggle with complex logic or precision-based tasks. So how do you choose the best model for your unique needs?

    Let’s break it down.

    Navigating the AI Model Landscape

    The current market is flooded with options. From commercial offerings like GPT and Claude to open-source contenders like Mistral and LLaMA, there’s no shortage of choice – but that also makes the selection process feel overwhelming.

    For the purpose of this guide, we’ll focus on modern generative models, the ones driving today’s breakthroughs. But before diving in, it’s important to acknowledge:

    Generative models require substantial data, thrive in creative or conversational contexts, and may not always be the right fit for high-precision or narrowly defined tasks.

    If your use case is heavily rules-based or requires perfect accuracy, classical AI methods or even non-AI systems may serve you better.

    Key Criteria for Choosing the Right AI Model

    Use Case Fit

    Before diving into pricing, performance, or architecture, the most important question is: what are you trying to accomplish?

    Different models excel in different scenarios. Knowing your use case will shape every other decision – from the model type to customization level to deployment strategy.

    Here are a few example categories:

    • Conversational interfaces (e.g., customer support chatbots) – prioritize models with fast response times and strong instruction-following.
    • Scientific research or complex analysis – favor models with high reasoning capabilities and precision (e.g., GPT-4o, Claude Opus).
    • Image generation or multimodal tasks – look for models that can process both text and images (e.g., GPT-4o with DALL·E 3, Gemini with Imogen).
    • Code generation and debugging – select models tuned on software tasks (e.g., GPT-4 Turbo, Claude, or smaller models like DeepSeek Coder).
    • Document summarization or long-form input – use models with large context windows (e.g., GPT-4o, Claude 3.5).

    Matching the model’s strengths to your business goal ensures you’re not overengineering –  or underdelivering.

    Vendor vs. Open Models

    • Vendor-managed models (e.g., OpenAI’s GPT, Anthropic’s Claude) are plug-and-play with high reliability, but limited customization.
    • Open-source models (e.g., Mistral, LLaMA) offer full flexibility, but require technical expertise to self-host or manage through a partner.

    Choose vendor models for speed and scale. Opt for open models when you need transparency, fine control, or industry-specific customization.

    Accuracy

    Generative models are probabilistic, not deterministic. That means accuracy will vary by task. Don’t rely on marketing claims –  validate the model against your specific use case.

    Some helpful resources:

    • Hugging Face
    • LLM Leaderboard
    • Task-specific benchmarks
    • Roll your own evaluations

    If you're doing task-level comparisons (e.g., summarization, translation, or Q&A), look for benchmark scores using metrics like BLEU, ROUGE, BERTScore, or F1 – these offer a consistent way to assess model performance in context.

    Performance

    Bigger isn’t always better – while large multimodal models like GPT-4o or Amazon’s Titan are powerful, they’re often overkill for specific tasks and can introduce latency and cost issues.

    If your use case is narrow and well-defined (e.g., coding assistance, document QA, or retrieval-heavy workflows), smaller task-specific models like DeepSeek Coder or Mistral often outperform their larger peers – not just in speed, but in alignment with the task at hand.

    Evaluate models based on:

    • Latency (response time)
    • Throughput (how many requests it can handle)
    • Context window needs (e.g., 128K tokens for long documents)

    In real-time or high-frequency environments, it’s often better to use focused models that are tuned for a specific workflow rather than generalized AI “Swiss army knives.”

    Economics

    Open-source ≠ free.

    While license fees may be lower (or zero), the total cost of ownership includes:

    • Infrastructure
    • Fine-tuning
    • Security and scaling

    In many cases, operating costs exceed licensing costs, so evaluate the full lifecycle cost – not just the sticker price.

    Transparency & Responsibility

    • Vendor models often provide SLAs and support, but little insight into how the model was trained.
    • Open models typically come with documentation on datasets, training methods, and licensing.

    This matters for:

    • Bias mitigation
    • Ethical sourcing of training data
    • Regulatory compliance

    If you’re deploying AI in regulated environments, consider contractual protections, audit logs, and additional governance tooling.

    Licensing & Integration

    Watch for:

    • Usage restrictions (e.g., no commercial use)
    • API limitations or user caps
    • Warranties on training data (important if you’re embedding the model in enterprise offerings)

    Ensure your legal and procurement teams are involved early in the evaluation process.

    Data Privacy

    We’ve covered this in depth in a previous blog, but it bears repeating:

    Always read the fine print. Ensure you’re not sending sensitive data into models without proper protections in place.

    For customer data, regulated data, or IP-sensitive workloads, privacy is non-negotiable.

    Customization Capabilities

    • Vendor models support light customization through techniques like RAG (Retrieval-Augmented Generation) or fine-tuning APIs.
    • Open models allow for deep customization – but that flexibility comes at a cost.

    Only go deep if the ROI justifies the engineering investment.

    The Bottom Line

    There is no “best” AI model – only the best model for your specific needs.

    The right model should:

    • Fit your use case – match the model’s capabilities to what you’re trying to build
    • Align with your budget and infrastructure
    • Match your compliance and governance requirements

    Remember: the most powerful or hyped model isn’t always the right choice. The model that fits your goals, team, and constraints – that’s the one that wins.

    Stay tuned for future posts in our AI series, where we’ll continue exploring key topics, trends, and considerations shaping the AI landscape.

    Catch up on previous entries in our AI Series:

    AI Unleashed: Ushering in the Era of Unprecedented Productivity | Edward Philip, Technical Director

    Unlocking the Power of Conversational AI: A New Perspective | Edward Philip, Technical Director

    AI  - A Catalyst for Financial Inclusion | Lauren Bergstrom, Advisory Director

    Reimagine Project Delivery with AI | Esha Nandrajog, Manager Advisory Services

    AI and Data Privacy | BC Holmes, Chief Technologist

    User eXperience in the Age of Conversational AI | Maddie Staruch, Senior Product Designer

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