Remember the days of endless manual tasks and struggling to keep up with information overload? I certainly do. Today, a powerful wave of innovation is transforming how we manage data, fueled by artificial intelligence (AI) and automation.

This shift isn’t just about streamlining processes; it’s about fundamentally changing how we operate. Having navigated the world of hyper-growth companies like Peloton, I’ve experienced this transformation firsthand. I watched our financial team balloon in size just to manage the deluge of data, often resorting to "duct tape and bubblegum" methods to cobble together insights from siloed systems. This meant building software and processes in-house to solve our needs. This worked, but it was time-consuming and expensive. And building custom integrations was only an option for us when our team was large enough to do it.

That eye-opening experience led me to create Avise, a testament to the power of AI in streamlining accounting workflows. But my story goes beyond just one company. It’s a call to action for all startups and businesses to embrace AI and automation as key drivers of growth.

Here’s why automation in general and AI in particular are game-changers for businesses of all sizes, along with potential pitfalls to watch out for.

Empowering Your Workforce

You’ve hired a team of smart, talented people. But if they’re bogged down in repetitive tasks, their brains, and their talent can’t help drive your company forward. Automating your team’s most time-consuming tasks will free them up so they can add real value to your business.

To do this, you should look first for specialized software that targets their job responsibilities. Once you’ve done that, look to general-purpose AI tools like ChatGPT that can help fill in the rest—with human assistance.

Pitfall: Be aware that many people will not automate their work unprompted. Once repetitive manual work is part of someone’s job, they often feel like it is their job and will worry that automation will reduce their value. It’s important to help them find how they can add more value with their brain rather than by acting like a machine.

Data-Driven Decision Making

AI can analyze vast amounts of data, identifying trends and patterns invisible to the human eye. This translates to actionable insights that inform business decisions and optimize resource allocation.

There are many special-purpose SaaS software systems that can consolidate data and drive the reports you need. General-purpose AI software can also ingest your company’s documents and analyze and report on them.

Pitfalls: Reports are only as good as the quality of data that underlie them. Look first at streamlining data collection and cleaning before focusing on reporting. Also, beware of analysis by ChatGPT and similar AIs. When your data doesn’t give a satisfactory answer, these systems are prone to hallucinations, essentially giving you an answer that looks right at first glance but is not backed by your underlying data. Always check the source references of AI answers.

Enhanced Agility and Scalability

Automation streamlines workflows, allowing your team to adapt and scale effortlessly alongside your growing business. No more scrambling to keep up with the increasing workload.

Pitfall: Software might scale infinitely, but it is often more rigid than human process. This is especially true of home-grown software, and that is why it’s good to have a bias toward buying software that has been built for many customers, with a range of specific needs, over building your own software internally for the exact place where your business is now.

But embracing AI isn’t just about buying the latest software. It’s about adopting a startup mentality. Here’s my advice:

Focus on the Low-Hanging Fruit

Don’t get bogged down by complex AI applications. Start by identifying the most time-consuming repetitive tasks that can be easily automated. These initial wins will free up substantial time. It’s OK if you still have a long tail of one-off tasks that are still manual.

Embrace the Glue Work

The best automation is the magical glue that seamlessly connects systems. Look for solutions that bridge the data gaps and create a unified financial picture. Modern AI tools have an increasingly large role here, as they can understand data from most systems without needing to be specifically tuned to them.

Invest in Your People

Upskilling your team is crucial. While AI handles the heavy lifting, your human talent will provide the strategic analysis and interpretation that drive growth. This decommodification of your workforce makes your people more important than ever.

The future belongs to businesses that leverage AI and automation not just for efficiency, but for strategic advantage. Take a page out of my experience: embrace the change, and watch your team transform into a true growth engine.