Frontier AI just got 75% cheaper. Your automation math changed.

In one month the big AI labs cut prices on fast models by half to three-quarters. Tasks that were not worth automating last year are worth it now.

October 2026 was full of AI releases, but the real headline was price. Anthropic's Claude Haiku 5.5 launched at US$0.10 per million input tokens — about 75% cheaper to run than its predecessor — and cached prices for Sonnet 5.5 halved. Google opened Gemini 4 Argon to developers at US$2 and US$10 per million tokens. Overall, running AI costs roughly ten times less than a year ago.

The price of the model was never the main cost of automation — describing the process is. But price decides which jobs are worth doing at all. A small task that runs a few hundred times a month may now pay back in months.

The smart approach is tiers: cheap, fast models for sorting and extracting; mid-size models for drafting; the most powerful models only for hard judgement calls.

What it means for your business

  • Revisit the list of tasks that were 'too small to automate'.
  • Use different model sizes for different tasks instead of one for everything.
  • Measure cost per completed task — the number the business understands.

How MTH can help: Our AI Adoption service chooses the right model from OpenAI, Anthropic, Google or xAI for each use case, with a clear cost model.

Sources & further reading: AI Impact Hub — The Daily AI Briefing, 8 October 2026 — https://www.aiimpacthub.com/ai-news/2026-10-08; MYGOM — AI News October 2026: What Changes for Business — https://mygom.tech/articles/ai-news-october-2026-what-changes-for-business.
This briefing is original commentary by MTH based on public reporting; figures are as reported by the sources named above and may be revised over time.

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