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Glossary entry

Unit Economics

The economics of delivering one unit of output, service, transaction, user interaction, or business outcome.

Why it matters

Unit economics matters because it translates AI from abstract platform cost into a form leaders can compare against margin, service cost, or business value at operational scale.

Unit economics is what turns AI from an interesting capability into a manageable business question. It allows leaders to ask whether each workflow, query, recommendation, or customer interaction is becoming economically stronger or weaker as demand grows.

For the return model behind that question, see AI ROI Models.