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When AI Costs More Than People: The Hidden Economics of Automation
Most automation business cases begin with a simple assumption: software is cheaper than payroll. Generative AI makes that assumption much harder to defend. The cost of artificial intelligence includes far more than a model subscription. It can include integration, security, governance, training, human review, workflow redesign, and variable usage charges. That changes the AI vs human workers calculation. A task may look inexpensive when priced by tokens and still become costly once a company has to supervise outputs, handle exceptions, retrain employees, and absorb mistakes. AI automation costs therefore need to be assessed as part of the total cost of AI in business, not as a narrow comparison between software and salary.
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