Manage AI costs with model routing for product managers

Learn how to manage AI costs when upgrading to smarter but more expensive frontier models. Sending every single user prompt to a genius model will quickly destroy your profit margins. This lesson explains model routing, a core strategy to match prompt complexity to the right AI model. Like choosing between fine dining and a casual thali platter, you do not need heavy compute for simple tasks. We cover routing simple queries to a lightweight model and complex reasoning to the frontier model. You will learn to build a classifier to evaluate prompt difficulty before cooking the meal and set up a reliable fallback system. Routing smartly saves ninety percent of your compute budget while keeping your app intelligent and preventing user churn. In this lesson: - Model routing and compute budgets - Frontier versus lightweight models - Building a prompt classifier - Setting up production fallbacks U2xAI Academy - AI skills for product managers.