Question 1

What's the cheapest model for a chatbot?

Accepted Answer

GPT-4o mini and Claude Haiku 4 are both excellent budget options, costing roughly 10-20x less than GPT-4o or Claude Sonnet. For most customer support use cases, they perform nearly as well as larger models.

Question 2

How can I reduce chatbot API costs?

Accepted Answer

Use a smaller model for simple queries and route complex ones to GPT-4o. Cache system prompts (50% discount with OpenAI prompt caching). Compress conversation history. Set max_tokens limits on responses.

Question 3

Should I build or buy a chatbot platform?

Accepted Answer

Building via API is cheaper at scale but requires engineering resources. Platforms like Intercom or Drift add AI for $100-500+/month but handle infrastructure. At under 1,000 users, a platform is often worth the premium.

AI Chatbot Pricing Calculator — Monthly Cost Estimator

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