Optimizing LLM Allocation Under Uncertain Performance Data

Hamed Khosravi, Xiaoming Huo· September 1, 2026 View original

Key takeaways

  • Allocating LLMs to workloads under budget is challenging due to uncertain performance data.
  • Traditional evaluation methods often fail to provide a complete and accurate quality table.
  • The proposed CASE method helps identify when further evaluation is truly necessary for optimal decisions.
  • Improving measurement accuracy of model quality yields more savings than optimizing assignments on uncertain data.

Who benefits

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Summary

This research addresses the challenge of allocating Large Language Models (LLMs) to workloads under a fixed budget when model quality evaluations are uncertain and incomplete. It proposes a method, CASE, to identify when further evaluation is truly necessary to make optimal deployment decisions.

Companies often face the complex task of assigning Large Language Models (LLMs) to various recurring workloads while adhering to a fixed budget. A major hurdle is the lack of a complete and accurate "quality table" that details how well each model performs on every specific task. Existing evaluation methods often fall short, either by not comparing models on identical work or by using proxy scores that don't reflect true business outcomes. The study highlights that even with more evaluation, the inherent uncertainty in how scores are produced means the quality table may remain undetermined. However, the optimal deployment decision itself might still be clear. The researchers propose a two-solve certificate approach: solve the allocation problem once with estimated performance and again with a least-favorable scenario. Agreement between these two solutions certifies the assignment; disagreement pinpoints areas where more evidence is crucial. To address this, they introduce CASE (causal active sequential experimentation), a method that strategically targets evaluation efforts to those uncertain model-workload pairs. Experiments on production logs reveal that measurement failure (inaccurate scoring) is a greater source of loss than suboptimal assignment based on existing estimates. The findings suggest that better information about model quality can yield more significant savings than simply optimizing assignments with uncertain data.

Why it matters

Professionals managing AI budgets and deploying LLMs can use this framework to make more informed allocation decisions, reduce wasted evaluation efforts, and achieve better cost-efficiency by focusing on where performance data truly impacts outcomes.

How to implement this in your domain

  1. 1Adopt a structured approach to LLM evaluation, distinguishing between model comparison and outcome-aligned scoring.
  2. 2Implement the proposed two-solve certificate method to identify critical uncertainties in LLM performance data.
  3. 3Apply active experimentation strategies like CASE to target evaluation resources efficiently on high-impact model-workload pairs.
  4. 4Prioritize improving the accuracy and relevance of model quality measurements over simply increasing the volume of evaluations.

Original post by Hamed Khosravi, Xiaoming Huo

"arXiv:2608.29560v1 Announce Type: new Abstract: A company with a fixed artificial intelligence (AI) budget must decide which large language model (LLM) handles each recurring workload. What it lacks is the quality table, how well each model performs on each workload. Given that t…"

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