Document heavy claims processing

Context

An insurer runs document heavy claims through AI, long inputs, moderate volume, but bursty (spikes after weather events). Self host GPUs sit idle between surges.

The decision

Here utilization, not volume, decides. At 40% utilization the idle capacity keeps API ahead; drive utilization up (batch the backlog) and the cliff appears.

What most miss

Vendors quote self host at 90% utilization. Bursty workloads run at 40%, the idle GPUs are the cost the pitch omits, and they move the cliff by years.

Stakes

Committing to self host for a bursty workload can lock in idle capacity cost that dwarfs the API bill it replaced.