The Efficiency Illusion
Engine Room Article 4: What Efficiency Gains Actually Deliver
The Benchmark Question
AI models are evaluated on standardized benchmarks - tests measuring specific capabilities like reasoning, coding, or factual recall. Benchmarks are useful for comparison, but they measure what’s measurable, which isn’t always what matters for a given application.
Benchmarks measure what’s measurable, which isn’t always what matters for your specific application.
When Benchmarks Mislead
A concrete example: a team I know evaluated models for technical documentation. The smaller, more efficient model scored nearly identically to the larger one on coding benchmarks. In production, the difference became clear.
The larger model correctly inferred that “the system” in paragraph four referred to a specific microservice mentioned three pages earlier. The efficient model treated it as a generic reference and gave plausible but wrong instructions.
Sources of Efficiency Gains
Quantization reduces precision of weights, making models smaller and faster. This works well up to a point, then subtly degrades capability.
Distillation trains smaller models to mimic larger ones. Effective, but the student typically doesn’t fully match the teacher on edge cases.
Architecture innovations genuinely do more with less. Real advances, though often incremental.
The question isn’t whether efficiency gains are real. It’s whether the tradeoffs matter for what you’re trying to do.
Efficiency gains are real, but they come with tradeoffs. Evaluate against your actual requirements, not benchmark headlines.
Related: 07-source—engine-room-series