Honda probably spends $100-$10,000 on a warranty claim in terms of technician time and parts. [1] Even at the low end they can afford to spend 10 cents on an LLM to analyze a claim.
Running big LLMs is expensive, but not nearly expensive as hiring people. Employees are very expensive, well beyond their wages that you see. Everything from employment taxes (employer paid) to hiring additional people to manage the people and their HR needs.
Even if it took $10 to run everything to handle each request, that’s far cheaper than even a minimum wage employee when you consider all of the employment overhead.
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The old model was capable of running on a CPU. The new one requires a GPU. This might be a consideration for some.
Honda probably spends $100-$10,000 on a warranty claim in terms of technician time and parts. [1] Even at the low end they can afford to spend 10 cents on an LLM to analyze a claim.
[1] specifically https://www.warrantyweek.com/archive/ww20230817.html claims the expectation value of warranty claims for a car is around $650.
Running big LLMs is expensive, but not nearly expensive as hiring people. Employees are very expensive, well beyond their wages that you see. Everything from employment taxes (employer paid) to hiring additional people to manage the people and their HR needs.
Even if it took $10 to run everything to handle each request, that’s far cheaper than even a minimum wage employee when you consider all of the employment overhead.