Embeddings enable semantic search by converting text into vectors that capture meaning. Keyword or metadata search performs exact or simple lexical matches. Many workloads—FAQ lookup, helpdesk routing, short product lookups, or rule-based filtering—do not benefit from semantic search. When embeddings are used anyway, organizations pay for embedding generation, vector storage, and similarity search without gaining accuracy or relevance improvements. This often happens when teams adopt RAG “by default” for problems that do not require semantic understanding.
Embedding requests are billed per input token or per 1,000 tokens depending on the model provider. Downstream vector database queries and storage incur additional costs. Using embeddings unnecessarily increases spend across inference, storage, and retrieval layers.