When Is Smaller Greener? Right-Sizing Language Models for Agentic AI
Organizations: Leeds University Business School, University of Leeds, Leeds, United Kingdom · Ca’Foscari University of Venice, Venice, Italy
Abstract
AI agents use large language models (LLMs) to plan and act over multiple steps, yet models are usually compared per call rather than per completed task. This paper asks: which model should an agent use to complete tasks reliably while minimising energy, cost and time? We show that per-call comparisons can be misleading for agentic AI. Because a task succeeds only if all required steps succeed, small differences in per-step reliability can produce large differences in overall task success. Failed attempts also consume resources. We therefore evaluate models using energy, cost and time per successfully completed task, treating the completed task as the functional unit. On this basis, we develop a decision model for choosing LLMs in agentic workflows. The model applies to tasks with binary or graded outcomes and to settings with or without retries. We show that each resource has a crossover task length at which a smaller, less reliable model ceases to be the greener, cheaper or faster option. These crossovers divide tasks into three regimes: for short tasks smaller models are preferred, for long tasks larger models are preferred, and only between these extremes do preferences among objectives matter. We embed these results in a two-stage framework that separates efficiency from preference. A Pareto screen first removes models that are never competitive; a weighted decision is required only when a genuine trade-off remains. A pilot study of 15 open-weight models from five developers, ranging from 0.6B to 27B parameters, on two multi-step agent tasks with measured GPU energy supports the predicted structure. The model with the lowest energy per completed task changes with task length and task type, and observed crossover points generally match those predicted from per-step measurements. These findings provide a practical framework for right-sizing language models in agentic AI.
Figures & tables
| Gap | What is missing | How we address it |
| G1. Unit of comparison | Models are chosen on per-call measures, while energy per successful task is only measured, not used for choice. | A decision model built on resources per successful task (Section 4.4 ). |
| G2. When is smaller better? | Task success is known to fall with task length, but there is no rule for when this reverses the ranking of models on energy, cost or time. | Crossover lengths and three regimes (Section 4.5 ). |
| G3. Role of preferences | Existing multi-criteria methods apply weights to all alternatives, even where no real trade-off exists. | A preference-free screen, with weights used only where models are both efficient (Sections 4.5 and 4.8 ). |
| G4. Kinds of task | Methods do not distinguish binary from graded outcomes, or actions that can be retried from actions that cannot. | Four special cases of one general model (Section 4.6 ). |
| Quantity | Role | Measurement |
| : per-step reliability | objective (max) | share of steps completed correctly in benchmark runs of the task family |
| : energy per step | objective (min) | measured on known hardware for open-weight models; estimated with bounds for closed models |
| : cost per step | objective (min) | tokens per step multiplied by the provider’s price |
| : time per step | objective (min) | measured response time per step |
| Context capacity | constraint | provider specification |
| Safety | constraint | published safety evaluations and robustness tests |
| Symbol | Set by | Meaning and example |
| measurement | Per-step reliability of model on the task family. | |
| measurement | Energy, cost and time per step of model . | |
| task profile | Number of steps in one attempt; follows from the expected length of the task. | |
| decision maker | Quality floor; follows from the required accuracy. for tasks that are simply done or not done. | |
| decision maker | Maximum number of attempts; follows from whether actions can be undone. for irreversible actions, for free retries. | |
| decision maker | Required probability that the task is completed; follows from the risk of a failed action. |
| Failures can be retried ( ) | Irreversible or limited retries ( finite) | |
| Binary outcome ( ) | V1. Minimise energy, cost and time per successful task. No constraint. Example: data extraction with an automatic check. | V2. Same objectives, subject to the chance constraint ( 6 ). Example: changing an airline booking. |
| Graded outcome ( ) | V3. Success means reaching the quality floor. Quality above the floor has no extra value. Example: a summary that must contain a set of required facts. | V4. Quality floor as a constraint and expected quality as a fourth objective. Example: drafting a report, where better quality has real value. |
| Model | Energy | Cost | Time | Context | |
| A | 0.995 | 0.400 | 3.00 | 2.7 | 400 |
| B | 0.990 | 0.220 | 1.20 | 2.1 | 200 |
| C | 0.970 | 0.060 | 0.25 | 1.5 | 128 |
| D | 0.960 | 0.075 | 0.30 | 1.8 | 128 |
| E | 0.985 | 0.320 | 1.80 | 3.6 | 1000 |
| F | 0.930 | 0.030 | 0.10 | 0.9 | 32 |
| Task length | Efficient models |
| 1 to 12 | F |
| 13 to 16 | C, F |
| 17 to 21 | B, C, F |
| 22 to 49 | B, C |
| 50 to 76 | A, B, C |
| 77 to 181 | A, B |
| Quantity | How it is measured |
| Task success | Automatic check of the final state of each task against the correct state, as in -bench ( Yao et al., 2024 ; Barres et al., 2025 ) . |
| Per-step reliability | Estimated from complete runs, by the step at which each run first fails. |
| Success curve | Share of successful runs, grouped by the number of steps a task needs. |
| Energy | For open-weight models, measured per inference on known hardware, using published measurements ( Chung et al., 2025 ) and checked against an estimate based on measured speed. For closed models, estimated with stated bounds. |
| Cost | Tokens used, multiplied by the provider’s published price. |
| Time | Measured response time for each step, summed over the task. |
LLM Agent Workflow Optimization
LLM agent workflow optimization studies how to design and run multi-step agents for better task success, reliability, latency, and cost.
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