The rapid adoption of AI-driven automation in IoT environments, particularly in smart cities and industrial systems, necessitates a standardized approach to quantify AIs computational workload. Existing methodologies lack a consistent framework for measuring AI computational effort across diverse architectures, posing challenges in fair taxation models and energy-aware workload assessments. This study introduces the Closed-System AI Computational Effort Metric, a theoretical framework that quantifies real-time computational effort by incorporating input/output complexity, execution dynamics, and hardware-specific performance factors. The model ensures comparability between AI workloads across traditional CPUs and modern GPU/TPU accelerators, facilitating standardized performance evaluations. Additionally, we propose an energy-aware extension to assess AIs environmental impact, enabling sustainability-focused AI optimizations and equitable taxation models. Our findings establish a direct correlation between AI workload and human productivity, where 5 AI Workload Units equate to approximately 60 to 72 hours of human labor, exceeding a full-time workweek. By systematically linking AI computational effort to human labor, this framework enhances the understanding of AIs role in workforce automation, industrial efficiency, and sustainable computing. Future work will focus on refining the model through dynamic workload adaptation, complexity normalization, and energy-aware AI cost estimation, further broadening its applicability in diverse AI-driven ecosystems.