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Ramp's VP of Growth warns that new technology like AI follows a "J-curve" of productivity. Teams may initially become less efficient as they spend time learning and reorganizing workflows away from old tasks. This dip is a necessary investment before productivity explodes, a crucial expectation for leaders to manage.
Successfully implementing AI isn't an overnight process. SaaStr's Chief AI Officer dedicated three months solely to learning and building agents. This focused effort, which feels like a slowdown, creates a "slingshot effect" where productivity and scale later accelerate dramatically.
Bill Glenn suggests a phased AI rollout for teams. Phase 1 focuses on efficiency and automating repeatable tasks to gain productivity. Phase 2 moves to strategic work, using AI for insights and decision-making assistance. This provides a clear, manageable roadmap for adoption.
AI's true productivity leverage is not just speed but enabling more attempts. A human might get one shot at a complex task, whereas an AI-assisted workflow allows for three or more "turns at the wheel." The critical human skill shifts from initial creation to rapid review and refinement of these iterations.
To successfully implement AI, approach it like onboarding a new team member, not just plugging in software. It requires initial setup, training on your specific processes, and ongoing feedback to improve its performance. This 'labor mindset' demystifies the technology and sets realistic expectations for achieving high efficacy.
True productivity gains from AI will mirror the adoption of electricity. Early factories that just replaced steam engines with electric motors saw little benefit. The revolution happened when they completely redesigned the factory floor around the new technology. Similarly, companies must reimagine entire workflows around human-AI collaboration.
Simply giving sales reps a tool that saves them 15 minutes per deal isn't enough. Leaders must proactively redesign the team's workflow, such as shifting from single-tasking to batch processing, to ensure the time saved is actually repurposed effectively.
Leaders must budget for a temporary negative ROI when implementing AI. The initial phase is dominated by a steep, inefficient employee learning curve that decreases productivity. True financial and operational benefits won't materialize for 6 to 12 months, a timeline that clashes with typical quarterly reporting cycles.
General-purpose technologies like AI initially suppress measured productivity as firms make unmeasured investments in new workflows and skills. Economist Erik Brynjolfsson argues recent data suggests we are past the trough of this "J-curve" and entering the "harvest phase" where productivity gains accelerate.
There is a brief grace period, estimated at about one year, for workers to learn and integrate AI into their roles. After this window, companies will actively seek to replace employees who haven't become significantly more efficient with AI tools, as the productivity gap will be too large to ignore.
Glenn Hutchins explains that broad economic efficiency gains from AI are not yet visible because companies are in the initial, costly investment phase. Meanwhile, they are just now reaping benefits from a decade of cloud investment, aided by a new generation of digital-native CEOs.