---
title: "Want To Reduce Labeling Cost? GPT-3 Can Help — Wang 2021"
description: "Manual annotation for NLP is slow and expensive. Most pseudo-labeling methods are tied to one task and need a sizable labeled seed set. This paper asks…"
authors: ["Shuohang Wang", "Yang Liu", "Yichong Xu", "Chenguang Zhu", "Michael Zeng"]
year: 2021
venue: "Findings of the Association for Computational Linguistics: EMNLP 2021"
source: "https://aclanthology.org/2021.findings-emnlp.354/"
doi: "10.18653/v1/2021.findings-emnlp.354"
licence: "CC BY 4.0 (ACL Anthology)"
licence_url: "https://creativecommons.org/licenses/by/4.0/"
summary_licence: "Elamur Cosmic License"
canonical: "https://research.elamur.ai/free/en/papers/wang-2021-want-reduce-labeling-cost-gpt/"
---
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# Want To Reduce Labeling Cost? GPT-3 Can Help

**Authors:** [Shuohang Wang](https://md.research.elamur.ai/free/en/authors/shuohang-wang/), [Yang Liu](https://md.research.elamur.ai/free/en/authors/yang-liu/), [Yichong Xu](https://md.research.elamur.ai/free/en/authors/yichong-xu/), [Chenguang Zhu](https://md.research.elamur.ai/free/en/authors/chenguang-zhu/), [Michael Zeng](https://md.research.elamur.ai/free/en/authors/michael-zeng/) · **Year:** 2021 · **Venue:** Findings of the Association for Computational Linguistics: EMNLP 2021 · **Licence:** [CC BY 4.0 (ACL Anthology)](https://creativecommons.org/licenses/by/4.0/)

**Links:** [Publisher's page](https://aclanthology.org/2021.findings-emnlp.354/) · [PDF](https://aclanthology.org/2021.findings-emnlp.354.pdf) · [DOI 10.18653/v1/2021.findings-emnlp.354](https://doi.org/10.18653/v1/2021.findings-emnlp.354) · [OpenAlex](https://openalex.org/W3196820561)

**Citations:** 170 citations (openalex-snapshot · 2026-10-14) · [127](#cited-by) in our library, of the 140673 papers whose bibliographies we read

## Summary
Manual annotation for NLP is slow and expensive. Most pseudo-labeling methods are tied to one task and need a sizable labeled seed set. This paper asks whether GPT-3 can serve as a cheap annotator whose outputs train smaller deployable models, as an alternative to running the huge model itself. The authors prompt GPT-3 (Davinci) with a few human-labeled examples to label unannotated data. They then fine-tune RoBERTa large on the labeled data for understanding tasks and PEGASUS for generation tasks. Costs are compared using OpenAI API pricing against crowd-sourcing rates from Google Cloud. They also study mixing GPT-3 and human labels under a fixed budget, and active labeling, in which humans re-check the GPT-3 labels that the model was least confident about. Across nine tasks, GPT-3 labels matched human-label performance at 50–96% lower cost. The student models frequently outperformed few-shot GPT-3, and a theoretical error bound supports this result. Mixed labeling beat either source used alone. This matters for budget-limited projects, especially in low-resource settings.

## Key points
- **Benchmarks and models:**
  - Nine datasets were used: SST-2, CB, RTE, TREC, AGNews, DBPedia, Gigaword, XSum, and SQuAD (question generation).
  - Prompts used 2/4/8 shots for NLU tasks and 1/2/3 shots for NLG tasks.
- **Cost per label:** On SST-2, a GPT-3 label costs roughly $0.002, compared with about $0.11 for a crowd-sourced label.
- **Reported savings at equal performance:**
  - 96% on SST-2.
  - 93.8% on Gigaword.
  - About 50–75% on the other tasks.
- **Active labeling:**
  - GPT-3's confidence (logit) correlates well with label accuracy. Its top-10% most confident labels reached roughly 95%, 90%, and 95% accuracy on TREC, AGNews, and DBPedia.
  - Having humans re-label the least confident items raised TREC accuracy from 77% to 80% under a $2.2 budget.
- **Limitations:**
  - With a large or unlimited budget, labeling everything by hand still gives the best results.
  - Fewer shots are often more cost-efficient for NLU, but 1-shot labeling hurts NLG quality.
  - The authors caution against relying on GPT-3 for high-stakes labeling, such as detecting toxic language.

*Our summary of the paper, in our own words — not its text. The work belongs to its authors; read it at the links above.*

Fields: [Natural language processing](https://md.research.elamur.ai/free/en/shelves/nlp/)

## Cited by

Cited by

127 papers of our library cite it (of the 140673 whose bibliographies we read); 14 of them have a page here, 113 not yet.

- [Large language models are few-shot clinical information extractors](https://md.research.elamur.ai/free/en/papers/agrawal-2022-large-language-models-are-few/)
- [Is GPT-3 a Good Data Annotator?](https://md.research.elamur.ai/free/en/papers/ding-2022-gpt-3-good-data-annotator/)
- [A Survey on In-context Learning](https://md.research.elamur.ai/free/en/papers/dong-2023-survey-context-learning/)
- [AnnoLLM: Making Large Language Models to Be Better Crowdsourced Annotators](https://md.research.elamur.ai/free/en/papers/he-2023-annollm-making-large-language-models/)
- [Distilling Step-by-Step! Outperforming Larger Language Models with Less Training Data and Smaller Model Sizes](https://md.research.elamur.ai/free/en/papers/hsieh-2023-distilling-step-step-outperforming-larger/)
- [Impossible Distillation: from Low-Quality Model to High-Quality Dataset & Model for Summarization and Paraphrasing](https://md.research.elamur.ai/free/en/papers/jung-2023-impossible-distillation-low-quality-model/)
- [Challenges and Applications of Large Language Models](https://md.research.elamur.ai/free/en/papers/kaddour-2023-challenges-applications-large-language-models/)
- [On LLMs-Driven Synthetic Data Generation, Curation, and Evaluation: A Survey](https://md.research.elamur.ai/free/en/papers/long-2024-llms-driven-synthetic-data-generation/)
- [A Holistic Approach to Undesired Content Detection in the Real World](https://md.research.elamur.ai/free/en/papers/markov-2022-holistic-approach-undesired-content-detection/)
- [SALOMO: An Annotation Tool for Complex Annotation Tasks with a Large Number of Labels](https://md.research.elamur.ai/free/en/papers/menzner-2026-salomo-annotation-tool-complex-annotation/)
- [What happens before and after: Multi-Event Commonsense in Event Coreference Resolution](https://md.research.elamur.ai/free/en/papers/ravi-2023-what-happens-before-after-multi/)
- [mGPT: Few-Shot Learners Go Multilingual](https://md.research.elamur.ai/free/en/papers/shliazhko-2022-mgpt-few-shot-learners-go/)
- [ToolAlpaca: Generalized Tool Learning for Language Models with 3000 Simulated Cases](https://md.research.elamur.ai/free/en/papers/tang-2023-toolalpaca-generalized-tool-learning-language/)
- [OpenStance: Real-world Zero-shot Stance Detection](https://md.research.elamur.ai/free/en/papers/xu-2022-openstance-real-world-zero-shot/)

## Cite

The paper itself, not this page. BibTeX from the library's record of the work.

```bibtex
@inproceedings{wang2021want,
  title = {{Want To Reduce Labeling Cost? GPT-3 Can Help}},
  author = {Wang, Shuohang and Liu, Yang and Xu, Yichong and Zhu, Chenguang and Zeng, Michael},
  booktitle = {Findings of the Association for Computational Linguistics: EMNLP 2021},
  year = {2021},
  doi = {10.18653/v1/2021.findings-emnlp.354},
  url = {https://doi.org/10.18653/v1/2021.findings-emnlp.354}
}
```

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- [↑ back to papers of 2021](https://md.research.elamur.ai/free/en/papers/2021/page/5/)

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