Economic strategy for the AI era

AI is rewriting the economics of expertise. Recast before the market does.

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.

Built for expertise businesses
Law firmsAccounting firmsConsultanciesAgenciesMSPsEngineering + architectureGovernment contractors

The productivity dividend

Technology’s gains never distribute themselves.

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.

01

Stand still

Buyers and competitors allocate the dividend for you—through fee compression, discounts, and new expectations.

02

Automate. Keep the model.

Delivery costs fall, but legacy pricing passes too much of the productivity dividend directly to the buyer.

03

Reprice + redeploy

Decide what buyers receive, what the enterprise retains, and where retained value is redeployed.

The strategic fact
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.

A fixed-scope diagnostic · 4–6 weeks

The AI-Economics Stress Test

Put the business model under pressure before the market does.

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.

01

Exposure map

See which revenue lines AI will deflate, through what mechanism, and on what timeline.

02

Margin map

Quantify where delivery costs can collapse—and how much of the gain the organization can retain.

03

Repricing plan

Build the path from hours and inputs toward fixed, value, outcome, or subscription pricing.

04

Redeployment plan

Decide where freed capacity and cash should go: build, acquire, return, or deepen the moat.

Week 1Baseline the economics
Weeks 2–3Stress the assumptions
Weeks 3–4Design the moves
Weeks 5–6Align the roadmap
The Repricing House

The scenario engine behind the advice

Your economics, alive—not frozen in a slide deck.

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.

  • 01
    Change the assumptions

    Model service mix, labor exposure, AI gains, client pressure, contract structures, and growth options.

  • 02
    Compare strategic paths

    See the revenue, margin, and owner-value consequences of standing still, automating under legacy pricing, or repricing and redeploying.

  • 03
    Rerun quarterly

    Update the model as the market changes and test management decisions against a living economic baseline.

First proof case · Accounting$20M firm · 10 partners
Income per equity partner
Partner income by strategy, 2026 to 2029 In this illustrative accounting-firm scenario, reprice and redeploy rises from 560 thousand dollars to 740 thousand. Stand still falls to 392 thousand. Adopt AI and keep hourly billing falls to 356 thousand. 2026202720282029
$740KReprice + redeploy
$392KStand still
$356KAI + hourly

Directional benchmark scenario for discussion—not a forecast, valuation, or financial advice.

One thesis. Multiple sectors.

Where expertise is the product, AI changes the P&L.

Professional services

Law, accounting, consulting, engineering, and architecture firms moving beyond leverage models built on hours and headcount.

Tech-enabled services

Agencies and managed service providers balancing automation, client fee pressure, recurring revenue, and changing delivery capacity.

Contract-driven organizations

Government contractors testing how AI changes delivery economics across time-and-materials, fixed-price, cost-plus, and outcome-based work.

The difference

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

The dividend is coming. Decide where it goes before the market decides for you.

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