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Modeling Agentic Technical Debt and Stochastic Tax: A Standalone Framework for Measurement, Simulation, and Dashboarding

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  • Muhammad Zia Hydari
  • Raja Iqbal
  • Narayan Ramasubbu

Abstract

Agentic AI systems combine probabilistic reasoning with delegated action through tools, context, memory, orchestration, and external workflow integration. This note develops a formal and managerially usable model that distinguishes Agentic Technical Debt from Stochastic Tax. Agentic Technical Debt is a stock of accumulated design and governance liability. Stochastic Tax is a recurring flow of operating burden that arises when stochastic agents are used in business workflows. The two constructs are related, but they are not the same: debt can amplify the tax, while the tax can remain positive even when debt is minimized. The note starts from a compact dashboard expression, expands it into a fuller structural model, defines all variables and parameters, shows how each cost category can be estimated from operational data, and illustrates the framework with an accounts-payable simulation and companion spreadsheet.

Suggested Citation

  • Muhammad Zia Hydari & Raja Iqbal & Narayan Ramasubbu, 2026. "Modeling Agentic Technical Debt and Stochastic Tax: A Standalone Framework for Measurement, Simulation, and Dashboarding," Papers 2605.27320, arXiv.org.
    • Handle: RePEc:arx:papers:2605.27320
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    File URL: http://arxiv.org/pdf/2605.27320
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