AI Glossary
Reasoning model
What is Reasoning model?
An LLM variant designed for slow, deliberate, step-by-step problem solving rather than fast text generation. Examples include OpenAI o1 and o3. Generally more accurate on complex logic, mathematics, and coding tasks but slower and more expensive per query than standard chat models.
Example in practice
A tax professional working through a complex cross-border transfer pricing analysis would benefit from a reasoning model over a standard chat model — the deliberate step-by-step approach reduces the risk of logical errors in high-stakes calculations.