Everyone and their mother has been talking about the progress of artificial intelligence. The launch and record-fast adoption of ChatGPT by OpenAI have triggered responses from significant players. Microsoft began integrating OpenAI-based solutions into its products, and Google launched its chat solution and announced similar moves. The spectacular launch of ElevenLabs (I’ve invested in a preseed round) showcased the potential in the audio space. At the same time, MidJourney has been a leader in image creation. These developments signal technological progress and open new growth and profitability avenues.

This rapid technological advancement may lead to the impression that representatives of many professions will soon have to face job reductions or even the disappearance of their entire industries. Consulting firms, mine included, receive questions from clients who are simultaneously trying to defend against the negative consequences of the trend and, if possible, use it to gain a competitive edge, grow their business, and improve profitability. The same is true now. This text is about the most common recommendations we give in these situations.

Balance and Attitude

Dealing with these kinds of changes requires a solid financial position and, more importantly, the ability of your team to adapt. If your treasury is empty and your staff has been repeating the immortal phrase for years:

“Why change if we’ve always done it this way and it worked?” Attempts to cope with changes driven by business automation are likely to fail.

Sorry to be the guy who tells you.

Everyone else has a chance, and for them, this change should be viewed purely as an opportunity. A positive attitude toward change can empower you to survive and thrive in the face of technological disruptions.

It’s not up to us, the small players trying to make an extra million here or there, to mitigate risks. That’s the job of journalists, CEOs of breakthrough AI companies, and regulators. You and your company should aim to gain an advantage from this and any other technology—or, at the very least, not lose. There are several ways to do this. You can also combine these strategies.

So, what to do with AI and business automation?

Strategy 1: The Fast Follower Strategy

Every technological breakthrough opens up new, uncharted competitive fields with no entrenched players, and market participants are on a more level playing field than before. Of course, 20 years ago, people were working on artificial intelligence. They now have a massive advantage in understanding what’s happening, but 99% of people in business only began interacting with AI consciously in 2023 (barely).

If they (you?) keep practicing, their advantage will persist. If they make the right decisions, it can grow significantly and bring productivity growth. How does this look in practice?

  • Like someone trying to position their venture capital fund as a leader in AI investments.
  • Like someone setting up a training company that shows marketers how to triple their content output.
  • Like a salesperson who triples their pipeline using AI prospecting tools (have you heard about Hubspot Breeze, maybe?).
  • Like a contract lawyer transforming into someone who automates the work of other contract lawyers.

And so on.

Strategy 2: Targeting Wealthy Clients

In many markets, long after a technological change has occurred, a group of very wealthy people still upholds the “old” ways of doing things.

Consider two examples. In 2023, horseback riding no longer makes much sense because most kilometers we travel will never be covered on horseback. Therefore, people don’t ride horses for practical reasons but for pleasure. And this has been the case for a long time—the Ford Model T premiered in 1908.

Nevertheless, despite the revolution that essentially eliminated the use of horses as a means of transportation, many people made a living by producing and selling saddles, training riders, managing racetracks, and betting services. Horses are still a significant industry. Because the role of the horse has changed, so has the role of those who operate in this market. The bar for equestrian practices has increased significantly, while the number of jobs has decreased, and earnings have increased.

A similar situation occurred with blacksmiths. Today, there are far fewer blacksmiths than in the past, and they engage in much less serial production than when they were making horseshoes and swords in bulk. Their products are more expensive, their clients wealthier, and their work resembles artistic metal sculpting more than simple physical labor.

There will be niches where people pay extra for non-AI products or services. Even if McDonald’s cashiers or entry-level bank advisors are automated, servers in starred restaurants or advisors in (genuine) private banking can keep their jobs—or even receive raises.

It’s always better to have wealthy clients. This is even truer now that AI threatens many professions in their current form.

Strategy 3: Playing High Stakes Games

In many areas, what we produce plays a significant role in a customer’s or company’s life. The more important this role and the smaller the margin for error, the more we expect someone exceptionally competent to oversee the situation. Hence, AI may cut out 80% of a given market, but the remaining 20% will be playing for high stakes.

For example:

In a world where many medical patients seek a so-called “second opinion,” AI will not be able to fully automate radiologists for a long time because there will always be a group of clients who—despite the facts, even if AI radiologists outperform human radiologists—will expect the assistance of a live doctor in a physical location, despite advances in telemedicine. The role of humans in many processes can be similar to that of an insurance policy.

Strategy 4: Choosing a Non-Automatable or Hard-to-Automate Business

In many cases, a narrator reading a monologue can already be automated. However, a podcaster specializing in interviews cannot be automated because a good interview relies on real-time interaction, humor, spontaneity, and genuine curiosity about the other person. Artificial intelligence cannot replicate this in real-time.

Strategy 5: The Celebrity Approach

Let’s return to narrators. There is little hope for saving the careers of many narrators who have yet to build a recognizable voice and name. However, people like Tom Hanks, Meryl Streep, or Scarlett Johansson don’t need to worry about whether audiobook listeners will stop valuing their voices more than the voices of anonymous narrators. Even if they are automated, the companies that do that will still want to pay them for their voices – even if they won’t have to say a word to get paid.

And so on, with similar approaches in other fields.

Strategy 6: The Regulatory Niche

The development of technology always outpaces efforts to regulate it. Over time, however, regulators do intervene, and various entrepreneurs exploit this intervention, building businesses in places that become lucrative thanks to government actions.

Strategy 7: The “Bieszczady Escape” (Life Change Strategy)

Many people are in their professional lives, even though they don’t want to be there. Technological change will push you to the path you’ve wanted to follow for a long time.

Whatever you do—do it intensely, without half-measures or hiding your head in the sand.

Last, somewhat general advice: this is big. So fight like you’re the third monkey on the ramp to Noah’s ark, and brother, it’s startin’ to rain.

PS. If you need more guidance on approaching business change, it may be worth revisiting Spencer Johnson’s book “Who Moved My Cheese?” This parable about change can provide valuable insights into how to adapt to and thrive in a rapidly changing business environment. Or ask a consultant, like the one writing this text. 😉 

(thanks, MidJourney!)