A cheap model handles the volume. A stronger model handles the hard cases. The whole pattern depends on one thing working: a reliable signal for which case is which. Routing systems that send simple queries to a small model and escalate only when the small model's output is suspect can keep most of the quality of the expensive tier while cutting cost substantially, with reported reductions of 45 to 85 percent depending on workload in routes studied with RouteLLM, as summarized in this routing and cascades writeup. Cascading, the sequential version of this idea, explicitly uses the cheap model's uncertainty as the trigger for escalation.
The catch is stated plainly in the same source: LLM self-reported confidence is poorly calibrated, and a model can produce a fluent, authoritative-sounding answer while being factually wrong. That is not a reason to give up on the signal. It is a reason to design the prompt around it, and then measure whether the signal is worth anything on your data.
Two findings shape the design. First, models are systematically overconfident on numerical uncertainty: nominal 99 percent intervals covered the true answer only 65 percent of the time on average across modern models, per the FermiEval calibration study. Second, confidence is steerable. Explicit instructions shift stated confidence in a controlled direction, which means your prompt wording is part of the measurement instrument, and you need to be deliberate about it, as shown in work on calibrating confidence with semantic steering. A third finding, from document extraction work, is that both true and false positives can come back at 100 percent confidence, which makes threshold filtering on raw self-reports useless unless you fix the prompt and the scale, per this account of the confidence calibration problem.



