FZ*

October 6, 2025

AI creates scale. Make sure you have headroom to grow.

Most people start with AI by automating existing tasks they hate - proofreading documents, summarizing reports. That's a fine start, but let's think about what happens next.

Imagine you answer customer emails for a local toy store. You have the AI read the emails, look up relevant product information, and draft responses for you to send. Suddenly, you're twice as efficient! Except the store still sells the same number of toys. The email volume stays constant. They just need half as many support people.

Now consider the same job, but at an outsourced support company. When AI makes you twice as efficient, you're faster and cheaper than competitors. The company wins more business. Success isn't guaranteed, but there's a path forward - more profitable work is out there to absorb your new capacity.

That contrast highlights the key lesson: AI generates efficiency, but that efficiency only creates value if the system you're in has room to grow. The toy store might naturally scale if it can talk to more customers. Or it might be constrained by foot traffic, available capital, or brand awareness. Or it might be able to grow, but only if it shifts to a different, more scalable sales model.

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