Academic Citation: Ivchenko, O. (2026). AI Economics: Open Source vs Commercial AI — The Strategic Economics of Build Freedom. AI Economics Series. Odesa National Polytechnic University. DOI: 10.5281/zenodo.18622040 Abstract The choice between open source and commercial AI solutions represents one of the most consequential economic decisions enterprise leaders face today [1]. This paper provide...
Category: AI Economics
AI Economics: Risk, Cost, and ROI Research by Oleh Ivchenko
AI Economics: Vendor Lock-in Economics — The Hidden Cost of AI Platform Dependency
Vendor lock-in represents one of the most underestimated economic risks in enterprise AI adoption, with switching costs typically ranging from 2.3x to 5.7x the original implementation investment.
AI Economics: AI Talent Economics — Build vs Buy vs Partner
*Scarcity Index: Composite score (1-10) based on demand/supply ratio, salary growth, and time-to-fill
AI Economics: Hidden Costs of AI Implementation — The Expenses Organizations Discover Too Late
Enterprise AI implementations routinely exceed initial budgets by 40-75%, a pattern I have observed repeatedly across my 14 years in software engineering and 7 years specializing in AI systems at a leading technology consultancy. While organizations meticulously plan for obvious expenses such as infrastructure, licensing, and talent acquisition, they consistently underestimate or completely ove...
AI Economics: ROI Calculation Methodologies for Enterprise AI — From Traditional Metrics to AI-Specific Frameworks
Return on Investment (ROI) calculation for artificial intelligence projects presents unique methodological challenges that traditional IT investment frameworks fail to adequately address [2]. Drawing from fourteen years in enterprise software development and seven years of AI research, this article presents a comprehensive analysis of ROI calculation methodologies specifically designed for ente...
AI Economics: TCO Models for Enterprise AI — A Practitioner’s Framework
Total Cost of Ownership (TCO) analysis for enterprise AI systems presents unique challenges that traditional IT TCO frameworks fail to address adequately. This paper presents a comprehensive TCO model specifically designed for AI implementations, drawing on my fourteen years of enterprise software experience and seven years of AI research at a leading technology consultancy. I propose a four-ph...
AI Economics: Economic Framework for AI Investment Decisions
Enterprise artificial intelligence investments present unique economic challenges that traditional capital budgeting frameworks fail to adequately address. This article develops a comprehensive economic framework specifically designed for AI investment decisions, integrating uncertainty quantification, option value analysis, and dynamic portfolio optimization. Drawing from fourteen years of sof...
AI Economics: Risk Profiles — Narrow vs General-Purpose AI Systems
Enterprise AI systems exhibit fundamentally different risk profiles depending on their architectural paradigm. This paper presents a comprehensive economic analysis comparing narrow AI systems—purpose-built for specific tasks—with general-purpose AI (GPAI) systems, particularly large language models and foundation models that have proliferated since 2022. Drawing from 14 years of enterprise sof...
AI Economics: Structural Differences — Traditional vs AI Software
In March 2022, a senior architect at a Fortune 500 financial services firm stood before his team with a troubling admission. His organization had spent $47 million over three years building what they called "the most sophisticated fraud detection system in the industry." The system worked—brilliantly, in fact—catching 23% more fraudulent transactions than their previous rule-based approach. But...
Enterprise AI Risk: The 80-95% Failure Rate Problem — Introduction
Enterprise artificial intelligence initiatives fail at rates between 80% and 95%—a staggering statistic that dwarfs failure rates in traditional software development. Despite billions in investment, most AI projects never reach production, and those that do often fail to deliver promised business value. This failure epidemic is not primarily caused by limitations in machine l[REDACTED]g algorit...






