Enterprises increasingly deploy large language models (LLMs) as core components of their digital stack, yet the cost structure of provider access remains fragmented and opaque. This article investigates how organizations can systematically exploit price competition among LLM providers to achieve measurable reductions in inference spend. We frame the problem as a procurement challenge, map curre...
Category: AI Economics
AI Economics: Risk, Cost, and ROI Research by Oleh Ivchenko
The Capability Adoption Stack: A Framework for Diagnosing Enterprise AI Readiness
Enterprise AI adoption remains fragmented, with organizations struggling to diagnose their readiness across technical, human, and governance dimensions[1]. This article introduces the Capability Adoption Stack (CAS), a layered diagnostic model that maps data infrastructure, talent, governance, and integration maturity into a coherent framework[2]. By operationalizing these dimensions into measu...
AI Subscription Economics: How Flat-Rate Pricing Masks True Enterprise AI Costs
Flat‑rate pricing models for enterprise AI services promise predictable cost structures, yet they often obscure significant hidden expenditures that can distort true total cost of ownership. This article uncovers three categories of concealed costs—compute overages, integration and support burdens, and switching costs—that emerge when organizations adopt seemingly straightforward subscription p...
Foundation Model Commoditization: How API Parity Is Reshaping the AI Stack in 2025
In this article we analyze the commoditization of foundation model APIs, showing how parity in capability metrics is reshaping competitive dynamics across the AI stack in 2025. Using a mixed-methods approach combining benchmark analysis, cost modeling, and market trend evaluation, we identify three dominant research questions: (RQ1) How have benchmark scores converged across leading frontier mo...
Shadow Banking Detection with Graph Neural Networks: Mapping Unofficial Lending Networks
Shadow banking has emerged as a critical stress point in the global financial system, enabling credit expansion outside regulated intermediation. This article develops a graph‑based anomaly detection framework that maps unofficial lending networks using transaction‑level data from Eastern European regulatory pilots. By treating financial entities as nodes and payment flows as weighted edges, we...
Opportunity Cost of AI Waiting: Economic Modeling of Delayed Enterprise AI Adoption
Enterprises that delay AI adoption face a measurable competitive disadvantage that can be quantified in economic terms. This article answers three research questions: (RQ1) What is the average competitive disadvantage cost for enterprises that delay AI adoption by 12–24 months relative to early adopters? (RQ2) Which industry sectors exhibit the highest cost differentials? (RQ3) What are the mac...
AI-Driven Market Concentration: Measuring Oligopoly Risk in Foundation Model Economics
Foundation models are increasingly central to digital economies, yet their market structure remains sparsely quantified. This article asks how economic dynamics of winner‑take‑all markets manifest in the foundation‑model sector, what barriers to entry shape competitive equilibrium, and how switching costs influence firm behavior. We address these questions through a three‑pronged empirical stra...
The Inference Cost Collapse: Economic Implications of 10x Annual Price Reductions for LLM APIs
Academic Citation: Ivchenko, Oleh, Ivchenko, Iryna (2026). The Inference Cost Collapse: Economic Implications of 10x Annual Price Reductions for LLM APIs. Research article: The Inference Cost Collapse: Economic Implications of 10x Annual Price Reductions for LLM APIs. Odessa National Polytechnic University, Department of Economic Cybernetics. DOI: 10.5281/zenodo.21363672 · View on Z...
OSS AI License Compliance: Legal Risks and Enterprise Obligations Under Custom AI Licenses
This article investigates the legal ramifications of non‑OSI‑approved AI licenses promulgated by major technology firms—including Meta’s Llama, Falcon, and Anthropic’s Claude—on enterprise adoption of open‑weight models. We frame the problem through three research questions: (RQ1) What contractual and regulatory obligations arise when deploying models distributed under custom licenses? (RQ2) Ho...
AI Wage Premium Evidence: Measuring Productivity Uplift and Salary Effects in Knowledge Work
The rapid adoption of artificial intelligence (AI) technologies in knowledge-intensive industries has sparked debate about its impact on compensation structures and wage inequality. This article investigates whether AI tools increase or decrease salary differentials across skill levels and firm sizes, focusing on empirical evidence from firms with high AI penetration. We pose three research que...