AI Operations · Glossary
Compounding Asset
A Compounding Asset is the authored policy library when the five architectural requirements hold and the autonomous improvement loop runs with human governance gates, accumulating value with every release.
Compounding is a conditional property, not an outcome promise. The condition is architectural. Per-decision traceability, deterministic enforcement, EvalOps, the autonomous improvement loop, and sovereignty by construction must hold. When they hold, every refinement adds to the library. When any one fails, refinements regress what came before.
The asset is the policy library, not the model and not the service hours. Models depreciate as procurement assets as frontier capability advances. Service hours depreciate the moment they are billed. The authored library compounds because it captures domain decisions, governed under one estate, owned by the domain experts who authored them.