What Is an LLM Router? The Engineering Guide to Intelligent Model Selection
An LLM router analyzes each AI request and routes it to the optimal model based on cost, quality, and latency. Learn how routers work, the five routing architectures, and why they cut LLM costs by 60-85%.
NR
NeuralRouting Team
April 10, 2026
What Is an LLM Router? The Engineering Guide to Intelligent Model Selection
GPT-4o costs $5.00 per million input tokens. Llama 3 on Groq costs $0.05.
That's a 100x price difference. And for roughly 60–70% of production AI requests — data formatting, simple classification, translation, summarization — the cheaper model produces output that is functionally indistinguishable from the expensive one.
This is the problem an LLM router solves.
An LLM router is an infrastructure layer that sits between your application and multiple language model providers. It analyzes each incoming request — its complexity, task type, risk level, and latency requirements — then routes it to the most appropriate model. Simple tasks go to fast, cheap models. Complex reasoning goes to premium models. Repeated queries get served from cache. Failed requests fail over to a backup provider automatically.
The result: the same output quality your users expect, at a fraction of the cost, with higher reliability than any single provider can offer.
This guide covers how LLM routers actually work at an engineering level, the five main routing architectures, what to look for when evaluating one, and where the technology is heading.
How an LLM Router Works
At its core, an LLM router intercepts API requests before they reach a model provider and makes a routing decision. That decision is the product of several stages, each adding intelligence to the process.
Stage 1: Request Analysis
The router examines the incoming prompt to understand what it's asking for. This can range from simple heuristics (keyword matching, token counting) to more sophisticated local classifiers that detect task type — coding, math, analysis, creative writing, summarization, translation, or general Q&A.
The best routers perform this classification at zero marginal cost, using local pattern matching rather than an API call to another model. This matters: if your router needs to call GPT-4o to decide whether to use GPT-4o, you've already lost the cost battle.
Key signals a router extracts from a prompt:
Task type — What is the user actually asking for? Code generation and mathematical reasoning need different models than translation or casual conversation.
Complexity score — How hard is this request? A 3-word question is different from a 2,000-token multi-step analysis. Token count, the presence of multi-step instructions, and structural complexity all factor in.
Risk level — Does this prompt involve medical, legal, financial, or confidential content? High-risk prompts often warrant routing to a more capable (and more expensive) model regardless of complexity, because the cost of a bad answer far exceeds the cost difference between models.
Stage 2: Cache Lookup
Before routing to any model, a well-designed router checks whether it's seen this request — or something semantically similar — before.
The simplest approach is exact-match caching: hash the prompt, look it up, return the cached response. This is fast (sub-millisecond) and free, but only catches identical queries.
More advanced routers add a semantic cache layer. They generate an embedding of the incoming prompt and compare it against stored embeddings using cosine similarity. If a match exceeds a tunable threshold (typically 0.90–0.95), the cached response is returned. This catches paraphrased and rephrased versions of the same question — a common pattern in production applications where users ask slight variations of the same thing.
The cost of a semantic cache lookup (one embedding call at roughly $0.000002) is negligible compared to even the cheapest model inference.
Stage 3: Model Selection
If the cache misses, the router applies its routing logic. The most common approaches fall into five architectures, covered in the next section.
The output of this stage is a model assignment: which provider, which model, which tier.
Stage 4: Execution and Failover
The router calls the selected model provider. If the call fails — due to a timeout, rate limit, or provider outage — the router automatically fails over to a backup model. In production-grade routers, this failover is transparent: the application receives a response as if nothing went wrong, with metadata indicating that a fallback was used.
This is one of the most underappreciated benefits of an LLM router. When you call OpenAI directly, an outage takes your application down. When you route through a multi-provider gateway, an outage triggers a reroute. Your users never notice.
Stage 5: Logging and Learning
Every routed request generates data: which model was selected, what it cost, how long it took, and (in the most sophisticated systems) how good the response was.
The best routers feed this data back into the routing model itself. If a particular model consistently underperforms on a specific task type, the router automatically adjusts — escalating those requests to a more capable model. If performance improves, the router can rehabilitate the cheaper model. This creates a feedback loop where routing decisions improve over time without manual tuning.
Five Routing Architectures
Not all LLM routers work the same way. Here are the five main approaches, each with different tradeoffs.
1. Rule-Based Routing
The simplest approach: explicit if/then rules defined by the developer.
if task == "translation" → use Llama
if task == "code_generation" → use GPT-4o
if token_count < 100 → use economy tier
Pros: Predictable, easy to debug, zero overhead.
Cons: Brittle. Requires manual maintenance. Doesn't adapt to new patterns or changing model capabilities.
Rule-based routing is a reasonable starting point, but it doesn't scale. As your model options grow and your request patterns evolve, maintaining rules becomes a full-time job.
2. Classifier-Based Routing
A local classifier (often a lightweight ML model or a heuristic pattern matcher) analyzes each prompt and assigns it a task type and complexity score. The router then maps these attributes to a model selection.
Pros: Handles diverse inputs automatically. No per-request API cost if the classifier runs locally. Can incorporate risk detection.
Cons: Classifier accuracy depends on training data. Edge cases may be misclassified.
This is the most common architecture in production routers today. The key differentiator is whether the classifier itself requires an API call (adding cost and latency) or runs locally (zero marginal cost).
3. Embedding-Based Routing
The router generates an embedding of the incoming prompt and compares it against known clusters of queries. Each cluster maps to a model assignment.
Pros: Handles semantic similarity naturally. Good for domain-specific routing.
Cons: Requires an embedding call per request. Cluster boundaries may be fuzzy.
4. LLM-as-Judge Routing
A smaller, cheaper model evaluates the incoming prompt and decides which larger model should handle it.
Pros: Can reason about nuance that classifiers miss.
Cons: Adds latency and cost for every request. The judge model itself can make mistakes. You're using AI to decide whether to use AI.
5. Hybrid Routing
The most sophisticated approach: combine local classification, embedding similarity, historical performance data, and custom rules into a single decision pipeline.
A hybrid router might work like this:
Local classifier identifies task type and complexity (zero cost)
Custom rules check for user-defined overrides
Historical quality data adjusts the decision (if this task/model pair has underperformed, escalate)
Cache checks catch repeated patterns
Failover handles execution failures
This architecture is more complex to build, but it captures value at every stage of the pipeline.
What to Look For When Evaluating an LLM Router
If you're evaluating routers for production use, here are the dimensions that matter most.
Classification Cost
Does the router's decision-making require an API call? If so, you're paying for every routing decision on top of the model inference itself. The best routers classify locally at zero marginal cost.
Cache Sophistication
Exact-match caching is table stakes. Semantic caching — matching paraphrased queries using embedding similarity — is what separates basic proxies from intelligent routers. Ask what similarity threshold is used and whether it's tunable.
Failover Architecture
How does the router handle provider outages? The best answer is "automatically and transparently, with no code changes required." If failover requires configuration changes or manual intervention, it's not real failover — it's a feature request disguised as documentation.
Quality Assurance
This is the question most teams forget to ask: how do you know the cheap model's answer was good enough?
Some routers simply trust the routing decision. The more sophisticated ones run continuous quality audits — comparing economy-tier responses against what a premium model would have produced — and automatically adjust routing when quality degrades. This is the difference between a router that saves money today and one that keeps saving money without degrading quality over time.
Observability
Can you see what the router is doing? Cost per request, savings attribution, model distribution, quality scores, cache hit rates — these metrics are essential for justifying the router to finance and for debugging production issues.
Custom Rules
Can you override the auto-routing when you need to? Teams often have domain-specific requirements: "always use GPT-4o for medical queries," "route anything from this session prefix to premium," "cap complexity at 5 for this API key." Custom rules that compose with auto-routing are more useful than either approach alone.
The Economics of LLM Routing
The financial case for routing is straightforward.
Consider a production application making 1 million LLM requests per month. If every request goes to GPT-4o at ~$5.00 per million input tokens (plus output tokens), the monthly bill adds up fast. A typical enterprise runs $10,000–$50,000/month in LLM inference costs.
An LLM router that redirects 65% of those requests to an economy-tier model — without degrading output quality — cuts that bill by 60–85%. The exact savings depend on your request distribution: applications with many simple, repetitive queries (customer support, data extraction, classification) save the most.
The industry data supports this. UC Berkeley's RouteLLM research demonstrated that routing simple queries to smaller models while reserving expensive models for complex reasoning reduces costs by up to 85% while maintaining 95% of GPT-4 quality on standard benchmarks. In production environments, organizations using routers report 30–70% cost reductions as a baseline.
But cost isn't the only economic argument. Downtime has a cost too. If your application depends on a single provider and that provider has an outage — as every major provider has experienced — your application goes down. An LLM router with multi-provider failover eliminates this single point of failure. The ROI on avoided downtime alone can justify the router.
Where LLM Routing Is Heading
The LLM router market is projected to reach $6.5 billion by 2030, growing at 21% CAGR. Gartner's Hype Cycle for Generative AI placed AI gateways as a technology shifting from "optional tooling" to "critical infrastructure."
Three trends are shaping the next generation of routers:
Self-improving routing. Today's best routers already feed quality audit data back into routing decisions. Tomorrow's routers will do this continuously and automatically — learning which models perform best for which task types, adapting to model updates and price changes, and rehabilitating models as they improve.
Semantic caching as a competitive moat. Every request a router processes enriches its cache. Over time, high-traffic routers build a dataset of prompt-response pairs that makes cache hit rates climb and costs drop further. This creates a flywheel: more traffic → better cache → lower cost → more traffic.
Agent-aware routing. As AI agents become more common — orchestrating multi-step workflows with tool calls and chain-of-thought reasoning — routers will need to handle agent-specific patterns: loop detection (blocking runaway agents that drain budgets), per-step routing (different models for different steps in a workflow), and session-aware context management.
Getting Started
If you're running LLM inference in production and paying more than $1,000/month, an LLM router will almost certainly save you money. The question is which architecture fits your needs.
For teams that want to self-host everything, open-source proxies like LiteLLM provide a solid foundation — with the tradeoff of operational complexity and limited routing intelligence.
For teams that want intelligent routing, quality assurance, and multi-provider failover without managing infrastructure, managed routers like NeuralRouting handle the full pipeline: local classification, semantic caching, automatic failover, and continuous quality auditing that improves routing decisions over time.
Whatever you choose, the architecture matters more than the vendor. Look for zero-cost classification, semantic (not just exact) caching, transparent failover, and — most importantly — a system that gets smarter over time instead of requiring constant manual tuning.