# Non-Technical Track: Decision Frameworks for AI Agents

## For Managers, PMs, and Decision-Makers

---

## Framework 1: "Should We Use an Agent for This?"

### The 4-Question Filter (for non-technical stakeholders)

**Q1: Can a human do this task with clear step-by-step instructions?**
- Yes → Could be agentizable
- No → Humans struggle too; don't agentize

**Q2: Does the task have clear success criteria?**
- Yes → We'll know if the agent succeeded
- No → You can't evaluate an agent if you can't define "done"

**Q3: What's the cost of failure?**
- Low (wrong suggestion, formatting error) → Full autonomy possible
- Medium (wrong code, wrong data) → Human review required
- High (financial loss, safety, legal) → Human-in-the-loop mandatory

**Q4: How many times does this task need to be done?**
- Once → Just do it manually
- 10x → Build a script
- 100x → Build an agent
- 1000x → Build a multi-agent system

### Decision Matrix

```
               Low Failure Cost    High Failure Cost
──────────────┼─────────────────────────────────────
High Volume   │  Build agent      │  Agent + HITL
Low Volume    │  Do it manually   │  Do it manually
```

---

## Framework 2: The 4 Agent Design Patterns (Andrew Ng)

### 1. Reflection
The agent checks its own work before presenting it.

```
Agent writes code → reviews own code → fixes issues → presents final
```

**Business value**: Reduces human review time by 40-60%. Catches obvious errors before they reach you.

### 2. Tool Use
The agent uses external tools to gather information or take actions.

```
Agent reason → call search API → read results → call database → compose answer
```

**Business value**: Agents can access real-time data, not just training data. Turns a static LLM into a live system.

### 3. Planning
The agent decomposes a complex request into sub-steps.

```
"Build a landing page" → plan steps (1. Design, 2. Code, 3. Test, 4. Deploy)
                         → execute each step → verify results
```

**Business value**: Complex tasks get done without step-by-step human instruction. The agent figures out the steps.

### 4. Multi-Agent Collaboration
Multiple specialized agents work together on different parts of a task.

```
PM agent plans → Designer creates mockup → Frontend builds → QA tests
```

**Business value**: Each agent is an expert in its domain. Together they outperform one generalist agent at a fraction of the cost.

---

## Framework 3: Cost Estimation for Agent Projects

### The 3x Rule

A production agent costs 3x your prototype estimate. Plan accordingly.

| Phase | Cost Multiplier | What's Included |
|-------|----------------|-----------------|
| Prototype (works on happy path) | 1x | Single agent, one model, no safety |
| Production (handles edge cases) | 2x | Retry logic, error handling, testing |
| Production+ (operational) | 3x | Monitoring, security, CI/CD, budgets |

### Quick Cost Calculator

```
Per-task cost = (input_tokens × input_price + output_tokens × output_price) × retry_rate × overhead

Where:
  retry_rate = 1.5 (typical for agent systems)
  overhead = 3.0 (production multiplier)

Example:
  Agent session: 4000 input tokens, 1000 output tokens
  Model: Claude Sonnet ($3/$15 per M tokens)
  
  Base cost: (4000 × $3/M + 1000 × $15/M) = $0.012 + $0.015 = $0.027
  With retries: $0.027 × 1.5 = $0.041
  Production cost: $0.041 × 3.0 = $0.123 per task
  
  At 1000 tasks/month: $123/month
  At 10000 tasks/month: $1230/month
```

### Cost by Autonomy Level

| Level | Cost/Task | Human Time/Task | Best For |
|-------|-----------|----------------|----------|
| No agent | $0 | 30 min | One-off tasks |
| AI-assisted | $0.01-0.05 | 10 min | Human does the work, AI helps |
| Agent with review | $0.05-0.30 | 5 min | Agent works, human reviews |
| Full autonomy | $0.10-1.00 | 0 min | Agent works, human audits |
| Multi-agent | $0.50-5.00 | 2 min | Complex workflows, human supervises |

---

## Framework 4: Autonomy vs Risk Matrix

```
                    Low Risk              Medium Risk           High Risk
                    (suggestions,         (code gen, data       (financial, medical,
                     content gen)          processing)           infrastructure)
─────────────┼─────────────────────────────────────────────────────────────
Tier 1:      │ Full autonomy           │ Agent + review      │ Human only
Simple       │                         │                     │
             │                         │                     │
Tier 2:      │ Agent + review          │ Agent + verifier +  │ Human + agent
Complex      │                         │ human spot-check    │ as tool
             │                         │                     │
Tier 3:      │ Multi-agent + audit     │ Multi-agent +       │ Not recommended
Strategic    │                         │ verifier + human    │ for agents
```

---

## Framework 5: The "Build vs Buy" Decision

### Build an Agent When:
- Your task is unique to your business
- You need to keep data in-house
- No existing tool solves the problem
- You have the engineering capacity

### Buy/Rent When:
- It's a common task (customer support, code review, monitoring)
- A SaaS product already exists
- You don't have AI engineering expertise
- Speed to market matters more than customization

### Hybrid When:
- Core task is unique, but supporting tasks are common
- You can build a small agent that calls existing SaaS tools

---

## Framework 6: Measuring Success

### Leading Indicators (week 1-4)
- Task completion rate (is the agent finishing its work?)
- Human review time reduction
- Cost per task vs cost of human doing it
- Error rate (how often does the agent need correction?)

### Lagging Indicators (month 2-3+)
- Time saved per week
- Quality compared to human baseline
- Number of tasks automated vs manual
- Maintenance burden (how often does the agent break?)

### Red Flags
- Agent costs more than the human it replaces
- Agent requires more oversight than doing it yourself
- Agent breaks every time the model updates
- Team doesn't trust the agent's output

---

## Framework 7: Governance & Compliance Quick Reference

### Regulatory Requirements by Region

| Requirement | EU (AI Act) | California (SB 1047) | UK/Japan |
|-------------|-------------|---------------------|----------|
| Human oversight | Mandatory for high-risk | Mandatory kill-switch | Voluntary |
| Audit trails | Required | Required | Recommended |
| Incident reporting | Required | Required | Voluntary |
| Disclosure (AI-generated) | Required | Required | Recommended |
| Data privacy (GDPR) | Full compliance | Similar | Different standard |

### Minimum Viable Governance

For teams not in regulated industries, start with:
1. **Every agent action is logged** with timestamp, agent, input, output
2. **Human review gate** for destructive operations (deletes, writes, spending money)
3. **Monthly cost report** per agent per task type
4. **Quarterly security review** — has the agent's behavior changed?

---

## Summary: Decision Flow

```
1. Can this task be automated?
   ├── No → Do it manually
   └── Yes →
2. What's the failure cost?
   ├── High → Human-in-the-loop mandatory
   └── Low →
3. What's the volume?
   ├── <10/month → Do it manually
   ├── 10-100/month → Build a script
   └── >100/month → Build an agent
4. How many specialists needed?
   ├── One → Single agent
   └── Multiple → Multi-agent system
5. What's the budget?
   ├── <$50/month → Use cheapest model (Gemini Flash)
   ├── $50-500/month → Cascade routing (mix models)
   └── >$500/month → Multi-agent with verification
```