A three-tier hybrid architecture routes 70–80% of documents to local deterministic extraction, cutting Azure OpenAI costs by 75% and processing time by 55% on a 4,700-document workload.
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The Local-First AI Inference pattern routes 70–80% of documents to deterministic local extraction at zero API cost, reserving Azure OpenAI calls for edge cases and flagging low-confidence results for human review. Deployed on 4,700 engineering drawing PDFs, it cut API costs by 75% and processing time by 55%, while bounding errors through a human review tier.
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