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I understand that. The AI software is meant to be a productivity enhancer for the employees using it. Other than the licenses, some training etc, there are no operating costs associated with it. Just by using the software, I don't suddenly have to pay more for salaries, retirement plans, etc, which are things that in aggregate produce the 3% margin. Maybe I have to pay more in logistics because I'm moving more product now, but I think the point stands.

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The point is if you are paying for software but not increasing your revenue by your margin you are lowering it even if you are increasing profit in absolute terms.

What you are mentioning with salaries is not relevant.

I think we can agree to disagree here. I don't see how a company needs to have an $8000 increase in revenue to justify a $240 software purchase. You are assuming that the current operating cost for every dollar of revenue is also applied to every incremental dollar in revenue gained from software efficiency, and that is just not true.

There is nothing to disagree on, i am talking about net operating profit margins. It is math.

What you are saying is again irrelevant. It is not about justification. Is about net margins…

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