Sustainability via LLM Right-sizing
This work addresses sustainability and cost-efficiency concerns for organizations deploying LLMs, offering an incremental method to guide model selection based on task-specific sufficiency rather than maximizing performance.
This study tackled the problem of high energy consumption and costs in deploying large language models (LLMs) by evaluating eleven models across ten occupational tasks, finding that smaller models like Gemma-3 and Phi-4 achieved strong results with lower costs and environmental impact, while GPT-4o performed best but at higher expense.
Large language models (LLMs) have become increasingly embedded in organizational workflows. This has raised concerns over their energy consumption, financial costs, and data sovereignty. While performance benchmarks often celebrate cutting-edge models, real-world deployment decisions require a broader perspective: when is a smaller, locally deployable model "good enough"? This study offers an empirical answer by evaluating eleven proprietary and open-weight LLMs across ten everyday occupational tasks, including summarizing texts, generating schedules, and drafting emails and proposals. Using a dual-LLM-based evaluation framework, we automated task execution and standardized evaluation across ten criteria related to output quality, factual accuracy, and ethical responsibility. Results show that GPT-4o delivers consistently superior performance but at a significantly higher cost and environmental footprint. Notably, smaller models like Gemma-3 and Phi-4 achieved strong and reliable results on most tasks, suggesting their viability in contexts requiring cost-efficiency, local deployment, or privacy. A cluster analysis revealed three model groups -- premium all-rounders, competent generalists, and limited but safe performers -- highlighting trade-offs between quality, control, and sustainability. Significantly, task type influenced model effectiveness: conceptual tasks challenged most models, while aggregation and transformation tasks yielded better performances. We argue for a shift from performance-maximizing benchmarks to task- and context-aware sufficiency assessments that better reflect organizational priorities. Our approach contributes a scalable method to evaluate AI models through a sustainability lens and offers actionable guidance for responsible LLM deployment in practice.