What We've Learned in 3 Months

Three months have elapsed since the inception of Domorewith.ai, and it's been a exciting journey so far partnering with our initial cohort of clients on crafting and executing AI strategies.

We've had the privilege of collaborating with exceptional New Zealand-based businesses across a diverse array of sectors. This experience has granted us valuable insights into these industries, as we design high-impact AI solutions tailored to each client's unique requirements.

Recognising the value of sharing knowledge, I've decided to outline some pivotal lessons we've gleaned thus far. While I intend to delve deeper into these subjects in future discussions, for the moment, I present to you five key takeaways from our early work in the AI consulting space.

1. There is no better time than the present for your business to start it’s AI journey

A mere 17 months ago, I was introduced and given early access to ChatGPT3.5, a technology so groundbreaking that it redefined my perception of what was possible. This transformative experience ignited my unwavering dedication to AI and what might be possible.

Subsequently, I've committed each day since to staying updated on AI advancements, experimenting with emergent tools, and strategically integrating AI into various workflows, processes, and my businesses.

The velocity at which AI is evolving is unparalleled in my experience. Each day brings forth innovative products and tools with the potential to profoundly impact businesses globally, reinforcing the urgency for immediate involvement in this dynamic field.

My advice to business owner that AI is more than just a technology trend; it is fundamentally reshaping businesses and the wider economic landscape. Having a well-defined AI strategy will soon become a crucial component of any business strategy (in fact, it is already beginning to).

2. AI will be the most deflationary technology of our lifetimes

AI will without a doubt end up being the most deflationary technology ever created, enabling tasks to be completed at a fraction of the previous time and cost. For example, creating custom software applications can now be done inexpensively, if not free, whereas before it would require months and hundreds of thousands of dollars.

This technological leap is particularly game-changing for knowledge workers and if AI is allowed to develop and proliferate throughout the economy, may cause the most dramatic and sustained economic boom of all time.

The pervasive belief that automation will lead to job loss is rooted in the Lump of Labor Fallacy. This is the flawed notion that there is a fixed amount of work available, and if machines take over some tasks, there will be fewer jobs for humans.

We've been conditioned to believe that the cost of living will perpetually rise, when in fact, technological progress should be continually driving down costs. The truth is that advancements in technology propel productivity, which subsequently lowers prices and liberates consumer spending power. This liberated capital then stimulates demand for novel products and services, catalysing the emergence of new sectors and job opportunities. Rather than eliminating jobs, a technology-boosted free-market economy generates a virtuous cycle of both economic and employment expansion. It's this dynamic that makes me exceptionally optimistic about the transformative potential of AI.

My advice to business owners is to concentrate less on the potential for AI to displace jobs and to focus on its power to automate tasks, elevate customer engagement, and foster innovation. The aim should be to augment each employee's capabilities, thereby increasing their value and driving up Revenue per Employee (RPE).

3. Calculating Return on Investment (ROI) for AI initiatives offers a compelling business case

Calculating the Return on Investment (ROI) for AI initiatives is not just a financial exercise; it's a powerful argument that showcases the tangible value AI brings to a business. The metrics go beyond the conventional ones, such as cost savings or revenue generation, to include strategic advantages like faster decision-making, enhanced customer experience, and operational efficiencies.

When accurately assessed, ROI offers an unequivocal justification for the integration of AI solutions. In our engagements with businesses, we make it a practice to link both ROI and specific objectives to each AI recommendation we make. While projections offer a starting point, we take it a step further by establishing short-term and long-term goals—specifically, benchmarks at the 3, 6, and 12-month marks for the majority of our implementations.

Let’s take a look at a couple of examples:

Operational Efficiency

Target a 20% workday efficiency gain within the first 90 days by automating repetitive tasks with AI copilot tools such as Google Workspace Duet AI and Microsoft 365 Copilot. Accomplishing this could elevate productivity gains to as much as $15,000 per skilled worker per year (based off the average NZ $75,000 Salary). When scaled across a team of 30, this equates to an productivity gains of $450,000. The advantages are further compounded when the reclaimed time and efficiency improvements are channeled into core activities that either generate revenue or add value to the business.

Google Workspace Duet AI embeds the power of generative AI across all the Workspace apps

AI automation

This is more formulaic and each process can be broken down into parameters to consider.

1. Time Savings per Task: The duration initially required for manual completion of the workflow by an employee, for example, 10 minutes per task.

2. Task Frequency: The monthly execution rate of the workflow, e.g., 60 instances per month per employee, multiplied by 10 staff members, resulting in 600 executions.

3. Average Hourly Wage: The typical hourly compensation for employees who were responsible for the task, cited as $36 per hour.

Such an approach would yield monthly savings of $3,600, amounting to an annual sum of $43,200, solely from automating a single high frequency process or task. In some cases, we've observed ROI realisation in under 30 days, a pace significantly faster than what businesses experienced when transitioning to cloud technology.

My advice to business owners is that an effective AI strategy and implementation are likely to yield some of the most immediate and striking ROI you'll ever experience.

4. The amount of time staff spend in their email is crazy

During our AI readiness assessments, the staggering amount of time knowledge workers allocate to email management caught our attention. In some cases with larger teams, our clients reported that employees dedicate up to four hours a day in their inboxes.

This is a significant time drain that could be better invested in tasks that contribute more directly to a company's strategic goals and bottom line.

Superhuman AI is a suite of AI features that'll help you save time, do more, and hit inbox zero faster than ever.

AI-enabled tools are already transforming the email management landscape by automating labor-intensive tasks such as categorising, prioritising, and even drafting emails and responses. For the past three months, I've been utilising Superhuman to generate first drafts for the majority of my emails as well as to craft replies. The beauty of AI lies in its adaptability—you can fine-tune it to mimic your writing style or employ it to modify content based on various tones and styles.

My advice for business owners is to integrate AI into their email workflows. Properly implemented, this can not only boost efficiency but also elevate the quality of email communications across the organisation. As a result, team members can allocate their time to tasks that add greater value to their roles.

5. Most businesses are still unaware of the powers of automation

A surprising number of businesses are still ensnared in manual processes, be it moving data between systems or double-entry tasks that drain valuable human resources. This lack of awareness regarding the available automation tools is staggering, especially when solutions like Zapier can effectively eliminate these inefficiencies.

The reality is that many businesses are still in the dark about how automation could revolutionise their daily operations, leading to significant time and cost savings.

The integration of AI into automation platforms is set to supercharge these capabilities even further. Certain tasks are ideally suited for automation; they're repetitive, rule-based, and require minimal human judgment.

AI enhances these automation processes by adding a layer of intelligent decision-making. For example, instead of just transferring data from one place to another, AI algorithms can analyse that data for trends, automatically flag anomalies, and even predict future outcomes.

My advice for business owners is to conduct a thorough audit of their routine processes. You'll rapidly discern 3-4 processes that are markedly inefficient or labor-intensive, making them clear candidates for automation. The convergence of AI and automation does more than just streamline operations; it also offers valuable insights that can guide smarter business decisions. It's astonishing how few businesses fully grasp the transformative potential of automation.

AI is an absolute game-changer and we are only just beginning

In the brief span of three months since our agency's inception, I've become unequivocally convinced that AI represents the most groundbreaking technology that we will see in our lifetimes. Crafting and implementing a well-thought-out AI strategy is not just an option; it's a categorical imperative for businesses, whether large or small.

Neglecting this essential strategic component could mean missing out on exponential growth and efficiency gains, putting your business at a competitive disadvantage.

Though the foundational work for AI dates back to the 1940s, coinciding with the advent of computing, the technology itself is far from antiquated. The first paper on neural networks, which form the backbone of today's AI, was published in 1943. What sets apart the current era of AI is the almost overnight transformation from a nascent technology to an extraordinarily capable one, particularly with the advent of models like ChatGPT-4.

Given the accelerating pace of AI innovation, businesses that hesitate to adopt AI risk falling irreversibly behind. The landscape is shifting rapidly, and the cost of inaction grows with each passing day.

If you're finding the process daunting, don't hesitate to reach out for assistance or schedule an introductory call with us here