Theorem of the Cost Paradox
Theorem T4
AI lowers the marginal cost of individual engineering tasks — but demand for software rises to meet the new supply. Professional engineers who can direct AI remain essential; their leverage over output grows as the cost of execution falls.
Implication
The economic case for AI-native delivery is not that engineers become unnecessary — it is that engineers who delegate effectively produce dramatically more value. Organizations that interpret AI efficiency as a signal to reduce engineering headcount will be outcompeted by those that redeploy the same headcount against a larger backlog.
Full proof and discussion
A complete derivation — including proof sketch, worked examples, edge cases, and references to supporting research — is in progress. This page will be expanded as the theory matures.
In the meantime, the statement and implication above are the compressed form; they are sufficient to derive the main methodological consequences worked out in RACE Programming.