AI Ecosystem CourseBy Queensly Austin
Module 25

AI Product Economics

Introduction Available · Lessons In Development

Introduction

A product needs to deliver something customers value at a cost the business can sustain. Model pricing is one input. Retrieval, tools, retries, hosting, support, evaluation, and human review can change the result substantially. Revenue, gross profit, operating profit, and cash each tell us something different.

We will turn an application's architecture into a unit-economics model. The teaching rates are hypothetical so you can reproduce the arithmetic without relying on a changing price page. Your workbook will compare base, heavy-use, and failure scenarios. Obtain current provider quotes before using the calculation in a purchase decision.

Review income and cash in Module 8, cost per successful task in Module 16, and internal agent calls in Module 22. Start by defining the unit, then calculate direct costs, design pricing, and test which assumptions change the outcome.

Planned lessons

  1. Choose The Economic Unit
  2. Tokens And Model Charges
  3. Inference Cost Of Goods Sold
  4. Tools, Retrieval, And Retries
  5. Routing And Caching Economics
  6. Seat, Usage, And Outcome Pricing
  7. Freemium And Free-Tier Expense
  8. Revenue, Gross Margin, And Operating Profit
  9. Willingness To Pay And Customer Return
  10. Acquisition, Retention, And Payback
  11. Usage Distributions And Heavy-User Risk
  12. Quality-Cost-Latency Tradeoffs