The Pignatelli Costing Framework (PCF): Redefining Productivity and Costing in the Age of AI

This paper introduces the Pignatelli Costing Framework (PCF), a conceptual model for redefining productivity and cost attribution in an AI-augmented world. Building upon the principles of Multimodal Productivity Costing (MPC), the framework expands the traditional Full-Time Equivalent (FTE) model to include five categories: human (hFTE), machine (mFTE), human-led AI-augmented (aFTE), machine-directed human execute (dFTE), and human–AI symbiotic (sFTE). This typology enables organisations to capture hybrid productivity contributions across human and machine modalities. The research explores how geometric changes in role design and decision-making between these equivalents influence costing methodologies as organisations transition from Narrow AI to General AI and eventually Super AI. **Keywords:** AI adoption; Costing methodologies; Productivity; Future of Work; hFTE; mFTE; aFTE; dFTE; sFTE; Organisational design; Human–machine collaboration.