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The focus on AI overlooks that it is just one form of leverage among many. Established, powerful multipliers like capital, media reach, or changing a business model (e.g., from one-on-one to one-to-many) often provide more significant and immediate gains without requiring technical expertise.
Companies are overcomplicating AI's role. It's not magic that alters basic business principles. It's simply a new tool to apply within the existing equation of applying a resource to a problem and measuring the outcome. The fundamentals of value delivery and measurement remain unchanged.
Focusing on AI for cost savings yields incremental gains. The transformative value comes from rethinking entire workflows to drive top-line growth. This is achieved by either delivering a service much faster or by expanding a high-touch service to a vastly larger audience ("do more").
Simply making existing processes faster with AI yields marginal gains. The real wealth-building strategy is using AI to fundamentally rethink your business, transforming value propositions and creating new revenue streams. The goal should be transformation, not just acceleration.
AI makes the technical 'doing' of business, like coding, accessible to everyone. The durable competitive edge is no longer the ability to build a product, but the ability to reach and acquire customers. Audience and distribution channels are the new defensible assets.
Simply making your team more productive with AI (e.g., doubling PRs) won't increase revenue unless you redesign your business model to leverage that new capacity. The goal isn't to do old things faster, but to find entirely new things that are now possible, like letting customers order cars via email in 1995.
The initial phase of any new technology is applying it to old problems. The transformative phase is creating things previously impossible. The key question for AI is not 'How can we do X faster?' but 'What new thing can we do now?', similar to how Spotify redefined music beyond an online CD store.
The AI investment case might be inverted. While tech firms spend trillions on infrastructure with uncertain returns, traditional sector companies (industrials, healthcare) can leverage powerful AI services for a fraction of the cost. They capture a massive 'value gap,' gaining productivity without the huge capital outlay.
In the multiplayer game of business, giving every founder AI tools doesn't create a universal advantage. It simply shifts the competitive landscape. Success no longer depends on having the tool, but on being able to use it more effectively and strategically than everyone else.
Entrepreneurs are chasing AI implementation while ignoring simpler, high-leverage changes. Shifting from a one-on-one to a one-to-many service model, or improving sales processes to reduce team size, can yield 10x leverage with a single decision and no AI.
The productivity boom from AI won't materialize from workers simply using new tools. Citing historical parallels with electricity and computers, the real gains are unlocked only when companies fundamentally restructure their operations and business models around the technology.