Technological Obsolescence
An asset made obsolete before its cost is recovered.
What it looks like Illustrative scenario
An independent shop quotes a five-axis cell with a seven-year payback. The next generation ships in three. The shop declines, the customer who needed that capability goes offshore, and the machine the region needed is never bought by anyone.
Scenario: A Cosolvent-Powered Marketplace
How an AI intervention works AI Risk Insulation ยท AI Memory
Fast technology cycles stop buyers making relationship-specific investments, which freezes long-horizon procurement. Risk insulation writes the obsolescence into the contract: options priced on salvage value and depreciation curves, buy-back or upgrade triggers, and terms that let a buyer commit without betting the whole cycle. Memory supplies the curves, tracking how assets of this class have actually depreciated and performed. And where the asset need not be owned at all, the matched market lets a shop buy hours on someone else's machine instead.