AI system rescue and optimisation.

Some AI systems never leave the pilot. Others launch, then lose their users or double their bill. We find out where the failures really come from, fix them in order of impact, and tell you plainly when a system should be retired instead.

Service6 min readUpdated 19 October 2026

Short answer

AI system rescue is diagnosing and fixing an AI system that underperforms: a pilot stuck short of production, an assistant staff have stopped using, or a system whose errors or costs have crept up. Levy Street starts with a diagnostic of the data, retrieval, prompts, model choice, integrations and the human workflow, measures where failures come from, then fixes the causes in order of impact.

  • Failures usually trace to data, retrieval or the surrounding workflow, not the model alone.
  • Label a sample of real failures before changing anything.
  • OpenAI shut down its Assistants API on 26 August 2026; systems built on it must move.
  • Sometimes the right answer is to retire the system or buy a product.

When a system needs rescue

An AI system needs rescue when it no longer earns its place: people route around it, nobody can say how often it is wrong, or it costs more each month for the same work. The common signs:

  • Staff check every output by hand, so the system saves no time.
  • The pilot impressed in a demo and stalled before production.
  • Running costs have climbed with no matching growth in use.
  • Behaviour changed after a provider updated or retired a model.
  • The original builder has moved on and nobody understands the prompts.

Platform changes force the issue. OpenAI shut down its Assistants API on 26 August 2026 (OpenAI), and Anthropic retires Claude Sonnet 4.5 from its API on 30 November 2026 (Anthropic). Systems built on either need work whether they were performing or not.

The diagnostic checklist

We work through the system layer by layer, using its logs and a labelled sample of real failures:

  • Inputs: are real inputs like the ones the system was tested on, including scans, attachments and odd formats?
  • Retrieval: for wrong answers, did the right document or passage come back at all?
  • Context: is the model given what it needs, and only that, or a growing pile of history and boilerplate?
  • Prompt and model: is the instruction clear, and is the model tier right for each step?
  • Tools: does each tool do one clear thing, with the narrowest permissions that work?
  • Output handling: is output validated before it reaches another system or a customer?
  • Human workflow: does reviewing an output take less time than doing the task by hand?
  • Measurement: is there a test set, and does anyone look at quality and cost weekly?
  • Ownership: is there a named owner who can approve changes?

Where failures usually come from

Symptom Likely cause First check
Confident wrong answers Missing, stale or badly extracted documents Was the right passage retrieved?
Good in the demo, poor in use Test cases cleaner than real inputs Label 100 recent production cases
Bill doubled Context growth, retries, tool loops or the wrong model tier Tokens per task, by step, over time
Very long prompts cost more than expected OpenAI bills GPT-6 prompts over 272K input tokens at 2x input and 1.5x output for the whole request Prompt size distribution
Staff stopped using it Review takes longer than doing the work Time ten reviews against ten manual tasks
Broke after a model change Prompts tuned to the old model, no regression suite Rerun saved cases on old and new
An agent does odd things Broad permissions, overlapping tools Audit a week of tool calls

The long-context rule is from OpenAI’s GPT-6.1 Sol model page.

A failed-pilot recovery, step by step

Illustrative example: a 60-person Christchurch manufacturer built an assistant over its maintenance manuals. Three months in, technicians had stopped using it. We label 150 logged questions with the outcome a technician would have wanted. Two causes dominate. First, retrieval: the manuals are scanned PDFs whose torque and clearance tables were flattened into unreadable text, so the right passage rarely came back. Second, scope: a large share of questions asked for part numbers and stock levels, which live in the ERP system, not in any manual. The fixes follow the evidence. Tables are re-extracted and checked, part-number questions are answered by a direct lookup in the ERP rather than by the language model, and the assistant says it does not know when nothing relevant is found. The same 150 questions are rerun after each change, and the system goes back to a small group of technicians before anyone else. See maintenance knowledge search for the workflow.

What we deliver

Diagnostic report
Failure causes ranked by how many real cases each explains, with examples.
Labelled failure set
The sample used for diagnosis, kept as a regression test.
Fix plan
Changes in order of impact, each with an expected effect and the check that proves it.
Cost review
Tokens and spend per task by step, with savings from caching, batching and model tiering quantified.
Implemented fixes
Built with your team or for them, one change at a time.
Keep, fix or retire
A plain recommendation, including buying a product if one now does the job.

How the work runs

  1. Discover: diagnose from evidence. Logs, configuration and a labelled failure sample show where errors come from. No changes are made until the causes are ranked.
  2. Prove: fix the biggest cause first. One change at a time, each checked against the failure set and the existing tests, so improvements are real and nothing else regresses.
  3. Scale: hand back a system that can be run. Monitoring, an owner and a regression suite are in place before we step away, or we keep running it through managed AI operations.

Cutting running costs

Optimisation is often the quickest win. Current price lists reward four habits: route simple steps to cheaper tiers; keep context lean; cache the stable start of long prompts (OpenAI bills cached input on GPT-6.1 Sol at 5% of the normal rate, and Anthropic bills cache reads on Opus 5.5 and Sonnet 5.5 at 0.05 times base input; OpenAI, Anthropic); and send work that can wait to batch processing, which costs half the standard price (OpenAI pricing). Each change is checked for accuracy, because a cheaper wrong answer is not a saving. Our guide to managing LLM costs goes deeper. Engagement cost depends on the system’s size, access to code and logs, and how many fixes you want implemented rather than specified.

When not to rescue

Some systems should be switched off. If the workflow was the wrong target, if review will always take longer than the work, or if an off-the-shelf product now does the job well enough, more engineering is sunk cost. We will say so in the diagnostic.

Work this draws on

  • GTM-Bench: co-authored by Levy Street team members, it scores agents so that weak results count against them. In the paper, one agent returned 6,342 rows on a single task: busy output that looks productive and creates work.
  • World of ClaudeCraft: our open-source browser MMO, built fast with AI coding tools and since extended by roughly 60 contributors. An automated architecture test scans every simulation file for forbidden imports and stray clock or random calls (repository), the kind of guardrail that keeps a fast-moving codebase from rotting.

Sources

  1. API changelog, OpenAI, accessed 2026-10-19
  2. API pricing, OpenAI, accessed 2026-10-19
  3. Prompt caching, OpenAI, accessed 2026-10-19
  4. GPT-6.1 Sol model page, OpenAI, accessed 2026-10-19
  5. Pricing (Claude API), Anthropic, accessed 2026-10-19
  6. Model deprecations, Anthropic, accessed 2026-10-19
  7. GTM-Bench: Evaluating Agentic AI Systems for Buyer/Seller Coherence in Go-to-Market Workflows, Blackpearl Group, 2026-06
  8. World of ClaudeCraft repository, Levy Street (GitHub), accessed 2026-10-19

Written by the Levy Street team in Wellington. Last updated 19 October 2026.

Questions people ask

Can you fix an AI system someone else built?

Yes, and most rescues start that way. We need read access to the code, configuration and logs, credentials for a staging environment, and an hour with whoever knows the history. The first deliverable is a diagnosis, not a rewrite, so you can decide what to do with evidence in hand, including going back to the original builder with a specific list.

Our pilot was built on OpenAI’s Assistants API. What now?

OpenAI shut the Assistants API down on 26 August 2026 and points developers to its Responses and Conversations APIs. If your system still depends on it, it needs migrating. Treat the move as a chance to add the evaluation set the pilot probably lacked, so you can prove the migrated version behaves at least as well as the old one.

How do you reduce AI running costs?

In order: route simple steps to cheaper models, trim context the model does not need, cache the stable parts of long prompts, and batch work that can wait. Current price lists reward all four: cached input on several new models is billed at 5% of the normal rate, and batch processing is half price at OpenAI, Anthropic and Google. We measure accuracy after every change.

Should we rebuild from scratch?

Rarely as a first step. A rebuild throws away integrations and lessons that often took months to earn, and it can repeat the original mistakes. We diagnose first, fix what can be fixed, and recommend a rebuild only when the architecture itself blocks the fix, for example when permissions cannot be enforced in the current design.

How do we know the fix worked?

The same labelled sample of failures is rerun after each fix, so you see the change on cases that used to fail, and the regression suite confirms nothing else broke. After release we track the operating number the system was built to move, such as review time or reopen rate, because a better test score that nobody feels in the work is not a rescue.

Have something to build?

Tell us about the workflow. We will map where AI can change speed, margin or decision quality, and what it would take to run it in production.