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How many categories for AI classification: what our benchmarks show as the list grows

How many categories for AI classification? Results from 5 to 2,014 categories, why close categories cost accuracy, and how to fix a taxonomy that is too big.

By Manoj Mohandas ·

How many categories for AI classification: the benchmark results

Each row below is from a published benchmark page, measured on held-out test rows. The datasets differ, so the rows are not directly comparable with each other; the point is the spread.

Benchmark Categories AI Classifier Model Dedicated AI Model Prompted general AI
Medical Abstracts 5 condition groups 60.0% 63.6% 65.7% (Claude Sonnet 5.5)
NHTSA vehicle systems 21 84.1% 87.7% 82.6% (Snowflake AI_CLASSIFY), 83.3% (Databricks ai_classify)
NHTSA subsystems 72 in training, 70 in the test 76.9% 85.9% 52.7% (Snowflake), 56.1% (Databricks)
BANKING77 77 92.6% 93.7% 84.7% (Claude Sonnet 5.5)
LEDGAR contract clauses 100 82.7% 84.9% 76.9% (Claude Sonnet 5.5)
WANDS products 158 95.3% 97.3% not tested
CBP HS codes, exact 10 digits 2,014 codes in training 22.2% 25.1% not tested

Three things stand out. Accuracy did not fall in a straight line as categories grew. The trained models led prompting by the widest margin on 72 close subsystems. And on the shortest list, the trained models did not win.

Close categories cost more than many categories

The clearest test is NHTSA, where the same complaints were classified at two levels of detail: 21 vehicle systems and 72 subsystems. Going from 21 to 72 categories:

  • the AI Classifier Model went from 84.1% to 76.9%;
  • the Dedicated AI Model went from 87.7% to 85.9%;
  • Snowflake AI_CLASSIFY went from 82.6% to 52.7%;
  • Databricks ai_classify went from 83.3% to 56.1%.

The two warehouse functions read category names and a one-line task description. On 21 broad systems that was nearly enough. On 72 close subsystems it was not, and the Snowflake and Databricks comparison sums it up: on 72 close categories the two functions "filed 53% and 56% correctly." The trained models had learned the boundaries from labeled complaints. (The two levels used different training windows, 2023 to 2024 for systems and 2020 to 2024 for subsystems, so the trained models' drop is not a perfectly matched comparison.)

The errors on other benchmarks show what "close" means in practice. On BANKING77, the prompted model labeled 32 of 40 get_physical_card messages as change_pin. On LEDGAR it labeled 34 "Waivers" clauses as "No Waivers" and 34 "Definitions" clauses as "Defined Terms." Those categories have names that overlap and boundaries set by the people who built the dataset. The benchmark page calls this a plausible explanation, not an isolated cause, and we treat it the same way. Your own taxonomy almost certainly has pairs like these.

Many-class classification with few examples per category

A long list becomes hard when most categories have only a handful of examples. The CBP benchmark is the extreme case: 5,621 training rulings covered 2,014 distinct 10-digit codes, and 1,129 of those codes were seen only once. On top of that, 27% of test rulings had a code that never appeared in training. Exact-code accuracy was 22.2% and 25.1%.

The same models were far more accurate at coarser levels of the same codes:

Level of the HS code AI Classifier Model Dedicated AI Model
10 digits 22.2% 25.1%
6 digits 29.9% 39.2%
4 digits (heading) 38.8% 54.0%
2 digits (chapter) 53.1% 74.0%

The photo benchmarks show the same effect inside one list. On car damage types, the Dedicated AI Image Model scored 70.2% overall on 8 types: 77.7% on the four common types and 19.0% on the four rare ones. Rare categories are where a model is weakest, whatever the total count.

Fine-grained categories that stay far apart

WANDS is the counterexample. Its 158 product categories are fine-grained, but most are easy to tell apart from a product's name and description, and training had 11,370 products. The product categorization results were 95.3% for the AI Classifier Model and 97.3% for the Dedicated AI Model, with the right department 96.9% and 98.4% of the time. A long list is fine when each category is distinct and well supplied with examples.

Too many categories, or too few: signs to watch

The test report AMT produces for every trained model shows accuracy per category and the confusions between them. Use it to judge your taxonomy size:

  • Confused pairs. Two categories that the model mixes up in both directions often overlap in meaning, not just in wording.
  • Thin categories. Categories with few examples tend to score lowest, as the rare damage types did.
  • A broad catch-all. On Medical Abstracts, the prompted model scored 40.2% on the broad "General pathological conditions" group. A category that means "everything else" is hard for any model.
  • Few broad categories. With 5 groups, the trained models scored 60.0% and 63.6% against the prompted model's 65.7%. The page says that gap is not established as a real difference. If your list is short and broad, a trained model may not be worth the setup, and prompting with good definitions can be enough.

How to fix a taxonomy that is too big

Merge categories that overlap

If the business does not act differently on two categories, merge them. On the damage benchmark, the Dedicated AI Image Model named the exact exterior part on 89.9% of test pictures, and 93.7% if front and back wheels counted as one. Only merge when the distinction does not matter to anyone downstream; when it does, collect more examples of both instead.

Collect examples per category, not just in total

A big file can still leave some categories thin. Count examples per category and add more for categories that look alike. Prompting has the same arithmetic: the assistant benchmark notes that five examples across 77 or 100 categories means 385 or 500 examples in every prompt. A trained model learns them once. For guidance on numbers, see how many examples you need to train a classifier.

Use a two-level taxonomy

Split a long list into a short top level and a detailed second level, the way HS codes split into chapters and NHTSA complaints into systems and subsystems. Train one model on the top-level column and another on the detailed column. Use the top-level answer where the detailed model is unsure: in the CBP test the Dedicated AI Model was right on the chapter 74.0% of the time even though it matched the exact code only 25.1% of the time. Detailed answers below your cutoff go to the Review Queue (Essentials and Business plans), and reviewers' answers train the next version.

Write down what each category means

Most overlapping categories exist because nobody wrote down where one ends and the next begins. Why taxonomy matters covers definitions, borderline decisions and reviewer agreement.

Starting without labels

If you have rows but no categories yet, AMT can start from unlabelled rows (Essentials and Business). Let it group similar rows and name the groups you keep, or give it your category names and let it suggest one for every row. It starts with as few groups as the rows support, and finer categories come when you ask for them or make them yourself. Groups you give the same name merge. People review the suggestions before training. We have not benchmarked this step, so we quote no accuracy for it.

To try your own list, start free. See all benchmarks, pricing and the product page.

Common questions

How many categories for AI classification is too many?

There is no universal ideal category count; product and plan limits still apply. In our benchmarks a trained model scored 95.3% and 97.3% on 158 product categories, but 22.2% and 25.1% on 2,014 HS codes, more than half of them seen only once in training. Closeness between categories and examples per category matter more than the count.

Can AI classification handle hundreds of categories?

Yes, when categories are distinct and each has examples. On WANDS, with 158 categories and 11,370 training products, the Dedicated AI Model was right on 97.3% of test products.

Do LLM classifiers struggle with many categories?

In our test, Snowflake AI_CLASSIFY fell from 82.6% on 21 vehicle systems to 52.7% on 72 subsystems, and Databricks ai_classify from 83.3% to 56.1%. The Dedicated AI Model, trained on labeled complaints, went from 87.7% to 85.9%.

Should I merge similar categories?

Merge them when nobody acts differently on them. On our car damage test, exact exterior-part accuracy was 89.9%, and 93.7% when front and back wheels counted as one part. If the distinction matters, add examples of both instead.

What is a two-level taxonomy for classification?

A short top level (such as HS chapter or vehicle system) with a detailed level beneath it. In our CBP test, the Dedicated AI Model was right on the chapter 74.0% of the time and on the exact code 25.1%, so the broader level scored higher. Whether that accuracy is usable depends on the workflow and review requirements.

Is a trained model always better for few categories?

No. On 5 broad medical groups, the trained models scored 60.0% and 63.6% against a prompted model's 65.7%, a gap the benchmark page says is not established as a real difference. With a short, broad list, good definitions may be enough.

Sources and further reading

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