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Expected loss versus review cost formula

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Benjamin Chen, Duncan McKeen, Manik Mukherjee, Sara Bolouki

Review is warranted when expected loss exceeds review cost

Human review is economically justified for a decision when the product of error probability and error impact exceeds the cost of review. Work failing this test is a candidate for automation—or exclusion from the pipeline.

In An Agentic World Where Automation Gets Cheap, Which Work Is Worth Routing to a Human?

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Benjamin Chen, Duncan McKeen, Manik Mukherjee, Sara Bolouki·

In An Agentic World Where Automation Gets Cheap, Which Work Is Worth Routing to a Human?

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P(error) × Impact(error) > Cost(review)
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In An Agentic World Where Automation Gets Cheap, Which Work Is Worth Routing to a Human?

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