What it is
A reasoning model works through a problem in a long stretch of hidden or visible thinking before it gives its answer. Reasoning effort is the control that sets how long that thinking is allowed to be. Providers usually offer a few named levels, such as low, medium and high, and sometimes a minimal or maximum level at either end. Some let you set a budget of thinking tokens instead.
Think of the difference between a quick estimate and a worked solution on paper. Low effort is the estimate. High effort is showing all the steps.
How it works
The extra thinking is made of tokens, just like the answer itself. A higher setting lets the model write more of them, trying approaches, checking its own work and backing up when it spots a mistake. This is a form of test-time compute: spending more computing while answering rather than during training.
Those thinking tokens usually count toward your bill and take time to produce. So raising the effort generally makes a reply slower and more expensive. The model may also use more of its output limit, so very high effort on a hard task can run into the cap.
When to change it
Low effort suits simple jobs such as classification, rewriting, short lookups and chat, where speed and price matter and the answer is easy. High effort pays off on multi-step problems: math, hard coding tasks, planning, and agents that must choose actions carefully.
More effort is not always better. On an easy question it can add cost and delay with no gain, and a model can sometimes overthink itself into a worse answer. It also does not remove hallucination, because a long chain of thought can still reach a wrong conclusion.
How to choose
Measure it. Pick a set of real examples, run them at two or three effort levels, and compare accuracy, time and cost per finished task. Published benchmark scores are often reported at a specific effort level, so check which one before comparing two models, because a score at maximum effort may not match what you get at the default.