Opinions expressed by Entrepreneur contributors are their own.
Key Takeaways
- Many entrepreneurs have fallen for the “automation illusion.” They believe buying the right tools, building workflows and handing tasks to AI is the equivalent of traditional delegation.
- However, they miss the mark because they build automations that require review, feedback and approval — creating more work for themselves.
- To achieve genuine, intentional automation, leaders should follow a 5-step framework that includes mapping what matters most, designing roles before rules and documenting processes before delegating.
We’ve all heard the promises that AI can revolutionize entrepreneurship through round-the-clock productivity, effortless scaling and businesses that practically run themselves. For some business owners, these promises have materialized into real time savings and lower costs. That’s why nearly 80% of businesses have adopted some form of AI. The challenge is that many founders who bought into the AI dream are now overwhelmed with endless notifications, dashboards and data being generated by the AI model.
The latest trend of Agentic AI is making this even worse. The problem is that many entrepreneurs have fallen for the automation illusion. They believed that buying the right tools, building workflows and handing tasks to AI agents would be the equivalent of traditional delegation. When you delegate to a person, you set the standard and then step away.
Related: Ask 3 Questions Before Using Any AI Tool to Grow Your Business
Why delegating to AI isn’t the same as letting go
This is where many entrepreneurs miss the mark with AI agents. They build automations that require review, feedback and approval. By automating without letting go, entrepreneurs reduce their role to nothing more than a digital paper pusher by creating additional work for themselves that human team members would have solved autonomously.
This scenario is real for many entrepreneurs. One of my clients — let’s call him “Tom” — was so proud of the effort he put into using AI to automate various parts of his digital marketing agency. He didn’t hesitate when it came to embracing the latest AI tools and systems. Soon, he had automated every aspect of the business, from content approvals to invoicing to onboarding forms. Or so he thought.
Just a month later, he was exhausted. His clients were confused, and his team was frustrated. It turns out that every automation still required his oversight since he hadn’t trained anyone to make decisions without him. Despite Tom’s attempts to be a tech-forward entrepreneur, he became nothing more than the business’s biggest bottleneck.
For any entrepreneur, this is the modern equivalent of medieval torture. The lesson here is that AI doesn’t replace the need for leadership in the business. If this sounds familiar, it’s critical to rethink the way you approach leadership for your new army of digital workerbees.
The 3 tests of leadership maturity
Success with AI isn’t measured by the number of automations you have deployed. True AI leverage is measured by the number of high-value tasks that can be executed without oversight from the business owner. To move from accelerated supervision to genuine automation, your leadership style must pass three critical tests.
The first test is the Decision Test. Ask yourself if someone else can make a judgment call without you. If the answer is no, you’ve simply outsourced a portion of the task. It’s critical to have Standard Operating Procedures (or SOPs) that the AI can follow. If you can’t clearly document the process, it isn’t ready for automation, and you run the risk of the workflow constantly needing direction.
The next test is the Ownership Test. If something goes wrong, who is responsible for fixing it? If the answer is you, your automation needs refinement. Mature leadership puts exception handling protocols in place to mitigate failure. Instead of having the AI come to you when it encounters an exception, provide it with instructions on secondary actions to avoid escalations.
The Visibility Test is useful for understanding if the outputs of your AI model support mature leadership. Getting notifications about every action that your AI agent makes only creates noise and distraction. Instead, focus on systems that help you understand the outcomes of those workflows.
Related: 7 Ways AI Made My Work Smarter — and Not Harder
The 5-step framework of intentional automation
As you can see, automation disguised as efficiency can expose cracks in your leadership style and processes. If you’re struggling with AI and automation making your life as an entrepreneur easy, this is a great place to start. Once you get your leadership house in order, you’re ready to shift from haphazard automation to a more strategic and intentional approach.
-
Step 1: Map what matters most — It’s critical to focus your energy on where it matters the most. Look through your processes to identify bottlenecks and repetitive decisions or tasks that don’t need your input.
-
Step 2: Design roles before rules — Figure out where you need human ownership in your processes. These will be activities that require traits like empathy, creative thinking and high-level strategy. Once the roles are established, you can build automation that supports those roles.
-
Step 3: Document before you delegate — Both humans and machines need clear direction. Be sure to document any processes, procedures, and SOPs before delegating or automating them.
-
Step 4: Automate boring and elevate brilliant — Your primary goal with automation is to free up your time for creating, strategy and building relationships. Of course, the reality is that not everything should be automated. Focus on automating rule-based and repetitive tasks, while delegating more complex activities to your team.
-
Step 5: Measure output, not inputs — Too many entrepreneurs spend their time focused on what their team and AI agents are doing and not what they are achieving. Intentional automation requires placing your focus on outputs to ensure the processes you have in place are working effectively, or where they can be improved. You won’t get automation perfect the first time. Success with automation will require an iterative process of refinement.
Related: The Biggest AI Mistake Leaders Make Has Nothing to Do With the Technology Itself
AI agents and automation can accomplish exactly what they promise, but it requires the right leadership and approach. For Tom, he had all of the right intentions when it came to AI. But his approach was wrong. Over time, I helped him rebuild his system from scratch, focusing on intentional, strategic automation.
The result? His agency now operates like a well-oiled machine. Think of your role as that of the conductor of an orchestra. Each automation, process and person is a unique and valuable instrument. It’s your job to write the music, set the tempo and then step back and let the music flow.
Key Takeaways
- Many entrepreneurs have fallen for the “automation illusion.” They believe buying the right tools, building workflows and handing tasks to AI is the equivalent of traditional delegation.
- However, they miss the mark because they build automations that require review, feedback and approval — creating more work for themselves.
- To achieve genuine, intentional automation, leaders should follow a 5-step framework that includes mapping what matters most, designing roles before rules and documenting processes before delegating.
We’ve all heard the promises that AI can revolutionize entrepreneurship through round-the-clock productivity, effortless scaling and businesses that practically run themselves. For some business owners, these promises have materialized into real time savings and lower costs. That’s why nearly 80% of businesses have adopted some form of AI. The challenge is that many founders who bought into the AI dream are now overwhelmed with endless notifications, dashboards and data being generated by the AI model.
The latest trend of Agentic AI is making this even worse. The problem is that many entrepreneurs have fallen for the automation illusion. They believed that buying the right tools, building workflows and handing tasks to AI agents would be the equivalent of traditional delegation. When you delegate to a person, you set the standard and then step away.