Stand still
Buyers and competitors allocate the dividend for you—through fee compression, discounts, and new expectations.
Economic strategy for the AI era
AI is lowering the cost of expertise. That creates a productivity dividend—and a distribution decision. Recast Economics helps leadership determine what buyers receive, what the enterprise retains, and how retained value is redeployed.
The productivity dividend
Someone always decides where the productivity dividend goes. With AI, that decision shows up in prices, margins, wages, client savings, investment, and returns to owners. If leadership does not make the choice deliberately, buyers and competitors will make it by default.
Buyers and competitors allocate the dividend for you—through fee compression, discounts, and new expectations.
Delivery costs fall, but legacy pricing passes too much of the productivity dividend directly to the buyer.
Decide what buyers receive, what the enterprise retains, and where retained value is redeployed.
AI creates the productivity dividend.The leadership decision
Where does it go?
This thesis echoes Daron Acemoglu and Simon Johnson’s central argument in Power and Progress: technological advance does not automatically produce shared prosperity; distribution is shaped by economic and institutional choices.
The AI-Economics Stress Test
We turn the distribution question into a model: where AI creates the dividend, who captures it under each strategic path, and what leadership can change before the market moves.
See which revenue lines AI will deflate, through what mechanism, and on what timeline.
Quantify where delivery costs can collapse—and how much of the gain the organization can retain.
Build the path from hours and inputs toward fixed, value, outcome, or subscription pricing.
Decide where freed capacity and cash should go: build, acquire, return, or deepen the moat.
The scenario engine behind the advice
The Stress Test becomes a decision system for the productivity dividend. The organization’s P&L lives in the model and can be rerun as AI capability, buyer expectations, labor leverage, and the cost curve move.
Model service mix, labor exposure, AI gains, client pressure, contract structures, and growth options.
See the revenue, margin, and owner-value consequences of standing still, automating under legacy pricing, or repricing and redeploying.
Update the model as the market changes and test management decisions against a living economic baseline.
Directional benchmark scenario for discussion—not a forecast, valuation, or financial advice.
One thesis. Multiple sectors.
Law, accounting, consulting, engineering, and architecture firms moving beyond leverage models built on hours and headcount.
Agencies and managed service providers balancing automation, client fee pressure, recurring revenue, and changing delivery capacity.
Government contractors testing how AI changes delivery economics across time-and-materials, fixed-price, cost-plus, and outcome-based work.
Not AI training. Not generic transformation. A quantified answer to: “What does AI do to our economics, and what should we charge—and build—instead?”
A confidential first conversation
Bring the revenue model. We’ll identify where AI creates the greatest economic exposure, who captures the gain under the current model, and whether a full Stress Test is the right next move.
Request a working session hello@recasteconomics.ai