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When to Use an LLM Instead of an Embedding Model for Retrieval

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Stanford AI Lab@StanfordAILab

The Embedder’s Dilemma— the ultimate question! Find out when you should use an embedding model vs an LLM! https://t.co/7xWcoD85zY

Context

Search systems usually find relevant text with an model, which turns text into a compact numeric representation that can be compared quickly, not with a full that reads the text. Stanford AI Lab posted a paper, The Embedder's Dilemma, on when using an LLM instead is worth it.

The paper reports that the best LLM tested, Gemini 3.1 Pro, and the best embedding model differ by only 0.4 points in aggregate score (77.6 versus 77.2), while the LLM cost up to 1,431 times more per pass ($154 versus $0.11). By task type, LLMs pull ahead on reasoning-heavy retrieval, where finding the match requires working through logic rather than surface similarity, and embedding models do better on classification.

On these results, the extra cost of an LLM looks justified mainly for retrieval that needs reasoning. That is an from the reported benchmark averages, not a rule the paper proves for every workload.

Terms in this piece · Glossary
  • embedding — A list of numbers representing a piece of text's meaning, so that similar meanings end up numerically close and can be searched.
  • LLM — A large language model — the neural network behind tools like Claude and ChatGPT, trained on huge amounts of text to predict what comes next.
  • benchmark — A standard public test set for comparing AI models — the shared scoreboards behind every "model X beats model Y" claim.
  • inference — Running a trained model to get answers — the phase where AI is actually used, as opposed to trained.
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