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WHITEPAPER

How a Real Estate Firm Cut Inference Cost 50% with Model Distillation

A model distillation guide for VPs of Engineering at scale.

Inference Costs Down 50%

Your AI features ship great.

Your AI bill ships even better, in the wrong direction.

  • Real estate platforms run a small number of AI tasks at very high volume.

  • The temptation is to negotiate with the model provider.

  • Most engineering teams have not run a distillation program because the muscle is unfamiliar.

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The numbers that make this a board-level conversation

51%
Quarterly AI cost — reduction
54%
Listing description unit cost
62%
Lead classifier unit cost

The 14-week program that gets you there

Weeks 1–3 — Task selection

Pick the three tasks that have the highest cost per month, the most repeatable structure, and the most measurable quality. Real estate platforms almost always find these are listing description generation, lead classification, and CMA summarization.

Weeks 4–7 — Eval set construction

Before any training data is generated, the eval set must exist. The eval set is the truth.

Weeks 8–10 — Training data generation

The teacher model generates training data on additional production-shaped examples. We generate 5 to 10 times the eval set size.

The Real Estate AI Optimization checklist every VP Engineering needs

Task selection

Pick the three tasks that have the highest cost per month, the most repeatable structure, and the most measurable quality.

Eval set construction

Before any training data is generated, the eval set must exist.

Training data generation

The teacher model generates training data on additional production-shaped examples.

Unit cost drops 50 percent or more on the workloads that matter.

If your AI cost is outrunning your feature growth, distillation is the highest-leverage move on the table.

Frequently Asked Questions

Not if the eval set is real and the gate is tuned. Across our distillation programs, customer-noticed quality regression has been zero on every workload that passed the eval gate.

Distillation requires ML expertise. We typically embed for the duration. Your engineering team learns the discipline through the worked program.

Most of the program cost is teacher inference for training data. Typically 10 to 20 percent of one quarter's pre-program spend. Pays back inside two quarters.