Tuesday, June 17, 2025

NEW INC. MAGAZINE COLUMN FROM HOWARD TULLMAN

 

Why Now Is the Time to A.I. Audit Your Business

A.I. isn’t an optional add-on. It’s foundational and roughly equivalent to electricity or the internet.

 

EXPERT OPINION BY HOWARD TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH INVESTORS @HOWARDTULLMAN1

Jun 17, 2025

 

In most of my conversations over the last year with new business owners and seasoned operators, all of whom are all concerned about ChatGPT’s impact on the economy, I’ve found an interesting contradiction in the way entrepreneurs are approaching the use and incorporation of A.I. I see a whole lot of wait and see.  Is it a genius or a clown?

While the novelty is starting to wear off, and the hiccups and hallucinations are certainly reasons for caution, the critical need to investigate, engage with and integrate these new technologies has yet to be fully appreciated and folded into the planning and operations of millions of businesses that really can’t afford to wait. They’re taking their time when the time to move is now and the timing couldn’t be more critical.

It’s not that hard to see why they’re conflicted. They’ve lived their entire business lives trying to be innovators, first movers and early adopters of new technologies in order to stay ahead of the competition. The “ready, fire, aim” attitude has mostly served them well over the years. But the truth is that smart entrepreneurs are far more careful and conservative than we’ve been led to believe. In fact, many are control freaks.

So, when they’re confronted with a pitch that basically says they should turn over some of their business processes to the “machine” because it will be good for their bottom line, they’re more than a little wary and reluctant to jump right in.  00:0001:49

Add to their basic mindset the fact that they understand almost nothing about how these black boxes really work, that they rarely have anyone presently onboard who can help them learn or who is up-to-speed on AI themselves, and that things seem to be moving ahead and changing at a ridiculously rapid pace. This makes for a perfect formula for angst and analysis paralysis. But, as is always the case, worrying never gets you anywhere and standing still is never the right solution.  A bad decision is often better than no decision at all. 

The good news is that there are simple and cost-effective steps forward –“toes in the water” if you will – that every company can take to get the ball rolling, and none are “bet the ranch” actions or expensive decisions. They’re simply smart ways to get smarter sooner.  

Every business today needs to conduct an AI audit if they don’t want to be left behind. AI isn’t an optional add-on at this point; it’s foundational and roughly equivalent to electricity or the internet. In the call center industry, for example, it’s now estimated that AI agents will handle 70 percent of all contacts by 2028

The first order of business doesn’t require technologists or AI experts. It’s simply a comprehensive review by your senior leaders of various areas of the business where AI may be able to help. Not, to be sure, by working immediate miracles (in spite of all the hype about eliminating hundreds of jobs overnight), but by helping you identify improvements, import better practices, and eliminate obstacles in your current operations.  

In my experience, this audit and review exercise also encourages your people to do some wishful thinking, to look forward to what could be, and to even think outside of their day-to-day, nose-to-the-grindstone activities and responsibilities. It’s a literal license to iterate and constantly improve.  

Broadly speaking, I’d break the critical categories down into four major buckets: automation of various internal processes, automation of various external processes, cleaning up and streamlining basic operations, and all your employee issues from augmentation, robotics, and realignment to concerns around recruitment and retention.

Once you’ve built a hit list and a wish list, you can bring in some professional help, a prompt engineer or two, and other AI resources to start building some solutions. Here are four examples.

Internal processes 

The long-term dream of a paperless digital world remains a remote and ambitious fantasy for millions of companies still drowning in reams of paper reports, receipts, requisitions, and records of all kinds. From the accounting department to the shipping center and personnel department, AI tools will create massive improvements in the traditional systems and antiquated procedures used in virtually every business, government agency and regulatory authority. Automation, digital records and AI-enabled identification processes will improve diagnostics in medical facilities, security in all of our transportation hubs and public areas, and in the entire finance world. 

External processes 

As the world becomes increasingly comfortable with ATMs, self-service checkout counters, and other forms of automation, AI systems can speed up, simplify, enhance and scale all of your front-of-house interactions with customers, clients and consumers including sales, service, and support. Millions of bank customers already acknowledge that they would rather not deal with a teller if efficient alternatives were available. AI tools can also streamline, simplify and optimize websites which, in many instances, companies haven’t reviewed or updated in years to improve customer experience and speed up the process.   

Basic operations 

Real-time review, ongoing support and enhancement, and timely intervention to avoid problems, breakdowns and other system interruptions are already being implemented in manufacturing firms around the world. The ability to project needs, demands and resource requirements will build even further upon the economic success of many just-in-time supply and warehousing chains and save huge amounts of time and money. Having AI systems review months or years of prior actions and activities and generate detailed analytics on the fly will provide insights, new directions, and even concrete suggestions for process improvements and better use of personnel and other materials and resources.  

People  

AI and related intelligent agentic devices and robotics can augment and supplement the work done by your employees to improve accuracy, capacity and safety as well as avoiding burnout, repetitive behavior injuries, and human errors. Systems are already being designed to identify, evaluate and categorize job applicants on a variety of criteria, to assist in scaling and speeding their documentation, onboarding and training, and to outline and create multi-year individualized career paths for each team member which serve as great recruiting tools and help to manage education, expectations and attitudes as well as improving retention. MIT and Nvidia Research have already developed a new algorithm that enables a robot to “think ahead” in a planning process and evaluate thousands of alternative paths in seconds. 

The bottom line is, you don’t know what you don’t know about your own business until you ask. Now’s the time to start asking. There’s no better, more cost-effective system than an AI system built for and based upon your own data as well as employing comparable data and other information drawn from the industry, your competitors’ reports and activities, and all manner of other external information and data sources. An AI audit is step number one.  

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