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Compliance (primary law sources)

Compliance (primary law sources)

Appendix D
Appendix
5
min read

Compliance (primary law sources)

  • GDPR fines up to 4% of annual global turnover, or about $22 million, whichever is higher — GDPR Article 83. [PRIMARY]
  • EU AI Act — recruitment classified as a high-risk system — Annex III. [PRIMARY]
  • NYC Local Law 144 — bias audits required for automated employment decision tools — NYC Department of Consumer and Worker Protection. [PRIMARY]
  • Amazon scrapped its internal recruiting tool after it "taught itself to penalize resumes that contained women-associated words" — Reuters, 2018. [PRIMARY]

Three of these are law, not advice. The fourth is the cautionary tale that explains why visible reasoning and a human on the leash are non-negotiable.

Build-vs-buy cost

Managed-automation market range [MARKET RANGE — present as a range, never as our price]

  • $2,000–$5,000/month managed retainer tier — Digital Agency Network, 2026 — https://digitalagencynetwork.com/ai-agency-pricing/
  • $500–$5,000/month done-for-you — Arsum, 2025 — https://arsum.com/blog/posts/ai-automation-agency-pricing/
  • $500–$5,000/month for SMBs — Latenode, 2025 — https://latenode.com/blog/industry-use-cases-solutions/enterprise-automation/17-top-ai-automation-agencies-in-2025-complete-service-comparison-pricing-guide ; SalemWise, 2025 — https://www.salemwise.com/insights/how-much-does-ai-automation-really-cost-for-smbs-and-how-to-budget-for-it-without-wasting-money

⇒ The ~$2,500/month figure used in the build-vs-buy maths is the midpoint of this prevailing SMB range. It is a market assumption the reader can adopt — not a quote.

DIY labour — the part that actually bites

  • Benefits = 29.9% of total compensation (≈1.43× wage multiplier) — US Bureau of Labor Statistics, Employer Costs for Employee Compensation — https://www.bls.gov/news.release/ecec.nr0.htm [PRIMARY]
  • US software-engineer salary — Glassdoor — https://www.glassdoor.com/Salaries/software-engineer-salary-SRCH_KO0,17.htm [MARKET RANGE]
  • UK software-engineer salary — Levels.fyi — https://www.levels.fyi/t/software-engineer/locations/united-kingdom [MARKET RANGE]
  • Fully-loaded mid-level engineer ≈ $10,000–$15,000/month (US) — our calculation; inputs cited above. ≈ 4–6× a $2,500 managed retainer.
  • Fractional CTO ≈ $3,000–$15,000/month — TLVTech — https://www.tlvtech.io/post/understanding-fractional-cto-rates-a-guide-for-entrepreneurs-and-business-leaders [MARKET RANGE]

DIY infrastructure & tooling — the cheap parts [PRIMARY — official list prices]

  • **Cloud Run: free tier covers 2M requests/month, scales to zero (an architecture property, not the production cost)** — https://cloud.google.com/run/pricing ; https://cloudchipr.com/blog/cloud-run-pricing ; Cloud SQL — https://cloud.google.com/sql/pricing ⇒ a production deployment is not the near-zero hobby case. With a warm instance (min-instances ≥ 1 to kill cold starts), a managed audit store (Cloud SQL), queueing (Pub/Sub) and log ingestion, reckon ~$120/month at the low end, ~$300–$350 typical for a mid-size agency, and $500–$750+ under heavier load / HA (our calculation; GCP list rates). Scale-to-zero only reaches near-$0 with negligible traffic.
  • Grafana Cloud: $0 free / $19+ Pro — https://grafana.com/pricing/ ; Datadog cost comparison — https://www.vantage.sh/blog/datadog-vs-grafana-cost
  • PagerDuty: $21–$41/user/month — https://www.pagerduty.com/pricing/incident-management/ ; on-call pay $500–$1,200/engineer/month [MARKET RANGE] — https://rootly.com/on-call-software/pay
  • LLM API list prices — OpenAI — https://openai.com/api/pricing/ (GPT-5 ≈ $1.25 in / $10 out per 1M tokens; GPT-4o-mini $0.15 in / $0.60 out per 1M) ⇒ on a GPT-5-class model running an agentic screening loop (~2–4 model calls per CV, ~3,000 input + ~700 output tokens each) reckon ~$20–$75 per 1,000 CVs — a few cents per CV. A budget model (GPT-4o-mini) is ~10–15× cheaper (~$2–$4 per 1,000). At agency volume (~10,000 CVs/month) that's a few hundred dollars/month on a frontier model (~$250–$700) vs ~$25/month on a mini model. (Our calculation; OpenAI list prices, batch mode ~halves it.)
  • Failure/cost anchors: Gartner (>40% cancelled by 2027; ≥50% over budget, see why DIY and off-the-shelf fail) and Sculley et al., NeurIPS 2015 (ongoing ML maintenance cost).

Further reading (YS): "Subscription engineering vs hiring vs marketplace" — https://you-source.com/blogs/subscription-engineering-hire-or-marketplace

YS Managed AI Automation (the offering)

  • "Designed, deployed and run by us," 98.4% renewal rate, "live in 30 days," 24/7 monitoring, dedicated Slack channel, sub-2-hour response; SOC 2 Type II ready, TLS 1.3 in transit / AES-256 at rest, data never used for model training — YS — https://you-source.com/ai-automation ; https://you-source.com/recruitment [PRIMARY — YS]

Further reading (YS): "How to Implement AI in a Recruitment Agency" — https://you-source.com/blogs/implement-ai-recruitment-agency · "What Agentic AI Actually Is" — https://you-source.com/blogs/what-is-agentic-ai

A word on the numbers you'll quote next

Use the [PRIMARY] figures with confidence — they're regulators, government statisticians, peer review and official price pages. Treat the [MARKET RANGE] ones as ranges, because that's what they are; the moment you collapse a $500–$5,000 spread into a single confident figure, you've stopped doing maths and started doing marketing. And the [VERIFY] flags are there on purpose: better an honest asterisk than a clean lie.

The technology is the easy part. So is quoting a statistic. Standing behind it for years is the work — which is the whole book, in one line.

the-math-no-recruiter-can-win-by-hand
what-an-ai-agent-actually-is
the-leash
the-toolkit
the-model-small-capable-swappable
talking-to-your-ats
use-case-1-resume-screening-against-a-job
the-shape-of-the-loop
running-it-thought-action-observation
use-case-2-cv-formatting-redacting-for-clients
reformatting-into-your-branded-template
resume-shortlisting
that-was-easy
security-compliance
keeping-pii-out-of-the-llm
exceptions-reliability
silent-api-drift-the-ats-changes-under-you
when-it-fails-anyway-dead-letter-and-the-leash
monitoring-observability
maintenance-the-lifecycle
the-scorecard-success-metrics-kpis
build-vs-buy-vs-managed
what-an-engineer-actually-costs
what-the-wider-data-says-happens-next
conclusion-how-this-gets-run-for-you
the-promises-behind-the-service
fuller-code-listings
one-full-screening-react-loop-semantic-kernel
env-deployment-reference
secrets-in-dev-vs-production
bullhorn-jobadder-endpoint-cheat-sheets
sources-further-reading
compliance-primary-law-sources

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