Every Bit Counts: A Theoretical Study of Precision-Expressivity Tradeoffs in Quantized Transformers

Quantization reduces the numerical precision of Transformer computations and is widely used to accelerate inference, yet its effect on expressivity remains poorly characterized. We demonstrate a fine-grained theoretical tradeoff between expressivity and precision: For every p we exhibit a function {\Gamma}, inspired by the equality function, and prove that a one-layer softmax Transformer can compute {\Gamma}, with p bits of precision, but not with p-1 bits of precision. This result concretely explains the widely observed phenomenon of empirical loss of expressivity when quantization is used. Practically, it suggests that tasks requiring equality-like comparisons (exact match, membership, etc.) are especially sensitive to quantization. Dropping even one bit can cross a threshold where the model cannot represent the needed comparison reliably. Thus, it paves the way for developing heuristics that will help practitioners choose how much quantization is possible: the precision should be chosen as a function of the length of equality to be checked for the specific task. Our proofs combine explicit finite-precision Transformer constructions with communication-complexity lower bounds, yielding a tight "one-bit" threshold.