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The most successful AI applications are not those doing existing tasks cheaper. Instead, they enable entirely new, high-volume interventions that were previously cost-prohibitive, such as proactively calling 50,000 at-risk people during a heatwave.

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The biggest opportunity for AI isn't just automating existing human work, but tackling the vast number of valuable tasks that were never done because they were economically inviable. AI and agents thrive on low-cost, high-consistency tasks that were too tedious or expensive for humans, creating entirely new value.

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").

Contrary to the popular belief that AI's main purpose is to replace humans for less money, user data shows its primary benefit is enabling entirely new functions. As AI costs rise, the focus will shift from simple cost-cutting to strategic investments in capabilities that were previously impossible.

Focusing AI efforts on efficiency and cost reduction offers limited, short-term benefits. The truly transformative approach is to invest in AI to create new revenue streams, enhance product offerings, and grow the business exponentially.

Most view AI for efficiency, but its true power lies in handling routine tasks to free up human talent. This unlocks capacity for strategic, creative, and relationship-driven work that fuels innovation and growth, shifting the question from cost savings to new capabilities.

True AI efficacy isn't just about financial impact; it requires operational leverage and amplifying human capabilities. Simply cutting costs with AI without reinvesting that productivity into new growth is a sign that leadership has run out of ideas for the future.

While tracking ROI is important, a heavy-handed focus can create a bias toward 'efficiency AI'—using AI for existing work. This overlooks 'opportunity AI,' which unlocks entirely new products and capabilities. The former is a foundation, but the latter should be the ultimate strategic goal for true growth.

The most significant value from AI is not in automating existing tasks, but in performing work that was previously too costly or complex for an organization to attempt. This creates entirely new capabilities, like analyzing every single purchase order for hidden patterns, thereby unlocking new enterprise value.

Initial AI productivity gains (e.g., turning a 2-day task into 10 minutes) are just the start. The true, transformative value emerges when business experts, newly empowered by AI thinking, use that saved time to pursue entirely new, previously impossible work, fundamentally changing business outcomes.

While AI provides operational efficiency, its most profound value lies in enabling tasks that were previously impossible due to scale, like instantly rewriting 10 million pages of web content after a terminology change. This capability transcends traditional ROI calculations.