AI and the Cost Shift

Front

EconomicsE-08

AI pushes down two costs at once: the cost of writing code, and the cost of finding defects in it. Neither drop is neutral.

Cheaper writing means more code shipped at roughly average security, and average has never been safe (see AI-02). Cheaper finding helps manufacturers and attackers both (see AI-04).

A manufacturer can spend that windfall on margin, on features, or on process discipline. Only the third choice keeps the defects from landing on operators.

Back

EconomicsE-08

Discussion prompts

  • If AI halves what it costs you to build, where do the savings go: margin, features, or security?
  • Attackers get the same cost reduction your developers do. What does that change about what you ship?
  • Two manufacturers touch AI-assisted code: the one that made the tool and the one that shipped the product. Which answers for a defect (see AI-03)?