Reducto page-level cost routing
Reducto
Smart cost routing is what makes Reducto look like software margins on top of an inference heavy workflow. Most document pages do not need the most expensive vision language pass, so Reducto can reserve premium processing for handwriting, dense tables, and messy layouts, while sending cleaner pages through cheaper OCR paths. That keeps unit economics aligned with a usage based API model instead of letting model costs rise one for one with volume.
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Reducto already sells in credits that vary by document complexity and model choice, so routing is built into how revenue and cost meet on each job. The expensive path is used selectively. Its Agentic OCR mode costs about 2x credits because it adds a second review layer to fix baseline OCR errors.
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This is the middle ground between cloud OCR and heavyweight workflow suites. Amazon Textract, Google Vertex Document AI, and Azure bundle lower cost extraction inside their clouds, while Instabase sells broader workflow automation for banks and insurers. Reducto competes by making the API easy to drop into an existing stack, then tuning page by page cost and accuracy.
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In practice, the routing decision happens at the page level, not the account level. A clean typed cover sheet can go through a cheap path, while the handwritten attachment behind it gets escalated. That matters in regulated workflows where one bad page can break an onboarding, claims, or KYC process, but processing every page at maximum power would crush gross margin.
The next step is turning routing into a broader orchestration layer across Parse, Extract, Split, and Edit, so Reducto captures more of the workflow while still choosing the cheapest model that clears the quality bar. As foundation models get cheaper, the winners in document AI will be the platforms that keep accuracy high on the hard pages and waste almost nothing on the easy ones.