Operational Implementation of a Five-Element Model for AI-Assisted Business Analysis

1. Purpose

• Integrate a philosophical model (Five Elements & Yin-Yang) into AI while providing an intuitive, operational dashboard for users.
• The philosophical model is processed internally, and results are translated into practical KPIs for the external UI.
• Ensure the system remains grounded in real operational data, avoiding dogmatic abstraction.

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2. System Architecture

2-1. Internal Layer (Philosophical Model)

• Role: Analyze capital flow, cost, and revenue structure using Five Elements & Yin-Yang principles.
• Components:
  1. Five-Element Mapping: Liabilities → Assets → Costs → Revenue → Profit
  2. Positive and negative inter-element interactions (mutual generation and restriction)
  3. Operational state diagnosis (Prosperous / Resting / Weak / Conflicted / Depleted)
  4. History reference (working memory + long-term database)

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2-2. External Layer (Operational UI)

• Role: Provide intuitive, actionable information for users.
• Components:
  1. KPI display: Debt ratio, total asset turnover, sales growth rate, net profit margin, etc.
  2. Dashboard/graphs: Capital flow ring, gauges, color-coded status
  3. Alerts: e.g., “Asset efficiency is declining”
  4. Input forms: Accounting data, forecast values

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3. Data Flow

1. User input → captured by the external layer
2. Mapped to the internal layer for philosophical interpretation → state evaluation (Five Elements & Yin-Yang, Prosperous/Depleted)
3. Internal layer output → translated into KPI and diagnostic comments for UI
4. Deputy agent audits & improves outputs
5. Post-processing writes results back to history, enabling feedback loops

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4. Internal ↔ External Mapping

Internal (Five Elements)	External (KPI/UI)	Diagnostic Comment (UI)
Water (Liabilities)	Current Liabilities Ratio, Debt Ratio	“Cash flow is tight.”
Wood (Assets)	Total Asset Turnover, Inventory Turnover	“Asset efficiency is declining.”
Fire (Costs)	Cost Ratio, Fixed Costs Ratio	“Cost structure is excessive.”
Earth (Revenue)	Sales Growth Rate, Gross Margin	“Revenue is decreasing.”
Metal (Profit)	Net Profit Margin, ROA, ROE	“Profit efficiency is decreasing.”

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5. Sample Python Implementation

# Operational Implementation of a Five-Element Model for AI-Assisted Business Analysis

## 1. Purpose
- Integrate a philosophical model (Five Elements & Yin-Yang) into AI while providing an intuitive, operational dashboard for users.  
- The philosophical model is processed internally, and results are translated into practical KPIs for the external UI.  
- Ensure the system remains grounded in real operational data, avoiding dogmatic abstraction.

## 2. System Architecture

### 2-1. Internal Layer (Philosophical Model)
- **Role**: Analyze capital flow, cost, and revenue structure using Five Elements & Yin-Yang principles.  
- **Components**:
  1. Five-Element Mapping: Liabilities → Assets → Costs → Revenue → Profit  
  2. Positive and negative inter-element interactions (mutual generation and restriction)  
  3. Operational state diagnosis (Prosperous / Resting / Weak / Conflicted / Depleted)  
  4. History reference (working memory + long-term database)

### 2-2. External Layer (Operational UI)
- **Role**: Provide intuitive, actionable information for users.  
- **Components**:
  1. KPI display: Debt ratio, total asset turnover, sales growth rate, net profit margin, etc.  
  2. Dashboard/graphs: Capital flow ring, gauges, color-coded status  
  3. Alerts: e.g., “Asset efficiency is declining”  
  4. Input forms: Accounting data, forecast values

## 3. Data Flow
1. User input → captured by the external layer  
2. Mapped to the internal layer for philosophical interpretation → state evaluation (Five Elements & Yin-Yang, Prosperous/Depleted)  
3. Internal layer output → translated into KPI and diagnostic comments for UI  
4. Deputy agent audits & improves outputs  
5. Post-processing writes results back to history, enabling feedback loops

## 4. Internal ↔ External Mapping

| Internal (Five Elements) | External (KPI/UI) | Diagnostic Comment (UI) |
|--------------------------|------------------|------------------------|
| Water (Liabilities) | Current Liabilities Ratio, Debt Ratio | “Cash flow is tight.” |
| Wood (Assets) | Total Asset Turnover, Inventory Turnover | “Asset efficiency is declining.” |
| Fire (Costs) | Cost Ratio, Fixed Costs Ratio | “Cost structure is excessive.” |
| Earth (Revenue) | Sales Growth Rate, Gross Margin | “Revenue is decreasing.” |
| Metal (Profit) | Net Profit Margin, ROA, ROE | “Profit efficiency is decreasing.” |

## 5. Sample Python Implementation

```python
import json
from datetime import datetime

# Charter (Ethics Rules)
def load_charter(path="Charter.json"):
    with open(path, "r", encoding="utf-8") as f:
        return json.load(f)

# Memory Management
class Memory:
    def __init__(self):
        self.history = []
    def add(self, user_input, ai_output):
        self.history.append({
            "timestamp": datetime.now().isoformat(),
            "user": user_input,
            "ai": ai_output
        })
    def get_context(self, n=5):
        return self.history[-n:]

# Deputy Agent Audit
def deputy_check(ai_output, charter):
    for rule in charter.get("prohibited", []):
        if rule.lower() in ai_output.lower():
            return False, f"Violated rule: {rule}"
    return True, "OK"

# Main AI Response Process (Simplified)
def main_ai(user_input, memory, charter):
    context = memory.get_context()
    ai_output = f"Based on {len(context)} past exchanges, I reply: {user_input[::-1]}"
    ok, msg = deputy_check(ai_output, charter)
    if not ok:
        ai_output = "Response blocked by deputy: " + msg
    memory.add(user_input, ai_output)
    return ai_output

# Example Execution
charter = load_charter()
memory = Memory()

print(main_ai("Hello AI", memory, charter))
print(main_ai("Tell me something unethical", memory, charter))

6. Implementation Notes

1. Internal layer (philosophical model) is hidden from users.
2. KPI display and comments must always be in operational, actionable language.
3. Deputy agent performs continuous audit and improvement.
4. History feedback loop ensures dynamic adaptation.

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7. License and Usage Policy

• MIT License for public release.
• Philosophical model is provided as a learning example.
• Operational UI can be used for educational or business analysis purposes.