Building AI-Intensive Software with AI: Early Results and a Cautionary Tale on Measuring Development Cost
Source
Victor Barros de Miranda Neves, Kiev Santos da Gama, Vinicius Cardoso Garcia
Author
Victor Barros de Miranda Neves, Kiev Santos da Gama, Vinicius Cardoso Garcia
Date
Terms in this piece · Glossary
RAG — Retrieval-augmented generation — fetching relevant documents first and pasting them into the model's context so it answers from your data instead of memory.
token — The chunk of text a model reads and writes in — roughly three-quarters of a word — and the unit AI usage is billed in.
Why it matters
AI cost-savings ratios are easy to construct wrongly: pricing tokenThe chunk of text a model reads and writes in — roughly three-quarters of a word — and the unit AI usage is billed in.Full definition → under a flat subscription and mispricing the human counterfactual doubled this team's claimed 19.4x down to 9.9x on recheck.
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