Estimated reading time: 9 minutes
Here’s how the economics differ and important considerations to help you navigate that shift.
I’ve built over a dozen AI systems in production and every single one taught me the same lesson: the mathematics of AI economics don’t work the way we expect.
While we debate whether AI will replace jobs or boost productivity, we’re missing a more fundamental problem – the cost structures underlying AI applications are economically unsustainable.
Most businesses are building AI features assuming they work like traditional software, where marginal costs approach zero as usage grows. This assumption is mathematically wrong, and companies that don’t understand these cost patterns may find their unit economics challenging.
