Human Factor
Algorithmic Work
Risks & Regulation
Failing reports
4
out of 50 (8 %)
Non-quality cost
0.00 €
AI repairs
AI Error
Moderate
Repair
Low
Fiscal
Low
Base
160.00€
Non-quality
0.00€
Base
3.02€
Risks & Taxes
0.00€
Base
0.17€
Risks & Taxes
0.00€
Scalability (1M Reports)
Gross Differential (n=50)
Coase Arbitrage
API CLOUD (OpEx)
The cumulative API cost (3.02 €) remains below the actual hardware acquisition cost (5,000.01 €).
The volume is insufficient to break even on the investment. Outsourcing (Buy) is the only rational option.
Competitive Advantage (L-algo)
The profitability equation for 50 reports is unambiguous. Including error correction for cognitive fatigue (5%%), the human analyst costs 3.20 € / report.
Against this, the Cloud API charges the same cognitive effort at only 0.06 € / report, integrating financially the risk of correcting its 8%% hallucinations.
Cloud vs Human
52.9x
Local vs Human
938.1x
Local vs API
17.7x
Regulation Calculator
Unit tax required to equalize the minimum wage:
Compensatory tax rate:
Calculation: Ratio of the competitive differential (3.14 €) to the base API cost. Theoretical punitive VAT to eliminate the AI advantage.
Microeconomics of the Cognitive Report
Cost / Report
Total Time
Local Break-Even
87,660
reports to amortize hardware
AI Economic Lever
159.83 €
saved vs human · via Workstation
-99.9 %
total cost
Operational Risk Matrix
Human
API Cloud
Local
Aggregate Risk Index
safest: Human