Name: Towards AI Legal Name: Towards AI, Inc. Description: Towards AI is the world's leading artificial intelligence (AI) and technology publication. Read by thought-leaders and decision-makers around the world. Phone Number: +1-650-246-9381 Email: pub@towardsai.net
228 Park Avenue South New York, NY 10003 United States
Website: Publisher: https://towardsai.net/#publisher Diversity Policy: https://towardsai.net/about Ethics Policy: https://towardsai.net/about Masthead: https://towardsai.net/about
Name: Towards AI Legal Name: Towards AI, Inc. Description: Towards AI is the world's leading artificial intelligence (AI) and technology publication. Founders: Roberto Iriondo, , Job Title: Co-founder and Advisor Works for: Towards AI, Inc. Follow Roberto: X, LinkedIn, GitHub, Google Scholar, Towards AI Profile, Medium, ML@CMU, FreeCodeCamp, Crunchbase, Bloomberg, Roberto Iriondo, Generative AI Lab, Generative AI Lab VeloxTrend Ultrarix Capital Partners Denis Piffaretti, Job Title: Co-founder Works for: Towards AI, Inc. Louie Peters, Job Title: Co-founder Works for: Towards AI, Inc. Louis-François Bouchard, Job Title: Co-founder Works for: Towards AI, Inc. Cover:
Towards AI Cover
Logo:
Towards AI Logo
Areas Served: Worldwide Alternate Name: Towards AI, Inc. Alternate Name: Towards AI Co. Alternate Name: towards ai Alternate Name: towardsai Alternate Name: towards.ai Alternate Name: tai Alternate Name: toward ai Alternate Name: toward.ai Alternate Name: Towards AI, Inc. Alternate Name: towardsai.net Alternate Name: pub.towardsai.net
5 stars – based on 497 reviews

Frequently Used, Contextual References

TODO: Remember to copy unique IDs whenever it needs used. i.e., URL: 304b2e42315e

Resources

Free: 6-day Agentic AI Engineering Email Guide.
Learnings from Towards AI's hands-on work with real clients.
Choosing Claude Model and Effort Level in Claude Code
Latest   Machine Learning

Choosing Claude Model and Effort Level in Claude Code

Last Updated on August 19, 2026 by Editorial Team

Author(s): Udaykiran Estari

Originally published on Towards AI.

The Wrong Question Is ‘Which Claude Model Should I Use?’

The fastest way to waste money in Claude Code is not picking the expensive model. It is leaving effort unconstrained, watching a normal coding session turn into a 7x token multiplier or a 1,000-subagent workflow. Model choice sets the capability ceiling, but your effort configuration dictates how aggressively you burn toward it. To stop bleeding budget, we need a practical, hands-on routing policy that treats model tier and reasoning depth as separate, governable levers.

Choosing Claude Model and Effort Level in Claude Code

The article argues that controlling Claude Code costs is less about choosing the “best” model and more about treating model tier and effort level as separate levers. It explains that the common failure modes come from pairing a big model with too little effort (starving it), assuming smaller models can’t do serious work (when sufficient effort matters), or using the most expensive cell when both reasoning capacity and deep exploration are needed. It then details how effort drives token volume and agentic orchestration—often causing large multipliers and runaway budgets—while noting edge cases like Haiku 4.5 not supporting the newer effort parameter and the importance of prompt caching, which can make a typically “expensive” model cheaper for repeated workloads. Finally, it proposes a practical governance approach: start with a reasonable default (e.g., Sonnet 5), cap effort by role/workflow, escalate only when diagnostics show context is correct but work is too shallow or reasoning fails, and reserve ultracode as budgeted infrastructure rather than a convenience toggle.

Read the full blog for free on Medium.

Join thousands of data leaders on the AI newsletter. Join over 80,000 subscribers and keep up to date with the latest developments in AI. From research to projects and ideas. If you are building an AI startup, an AI-related product, or a service, we invite you to consider becoming a sponsor.

Published via Towards AI


Towards AI Academy

We Build Enterprise-Grade AI. We'll Teach You to Master It Too.

15 engineers. 100,000+ students. Towards AI Academy teaches what actually survives production.

Start free — no commitment:

→ 6-Day Agentic AI Engineering Email Guide — one practical lesson per day

→ Agents Architecture Cheatsheet — 3 years of architecture decisions in 6 pages

Our courses:

→ AI Engineering Certification — 90+ lessons from project selection to deployed product. The most comprehensive practical LLM course out there.

→ Agent Engineering Course — Hands on with production agent architectures, memory, routing, and eval frameworks — built from real enterprise engagements.

→ AI for Work — Understand, evaluate, and apply AI for complex work tasks.

Note: Article content contains the views of the contributing authors and not Towards AI.