Using encoder-decoder models is crucial when handling complex tasks like translation, as they effectively create valuable feature representations from the input, allowing for a smoother decoding process. The encoder captures the original encoding, enabling the model to leverage context and navigate intricacies instead of building everything from scratch with each generated token. In scenarios prioritizing classification or fixed outputs instead of arbitrary-length sequences, encoder-only models are often more suitable, highlighting the importance of choosing the right architecture based on task requirements.

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