AI won’t optimize your company. It will force you to rebuild it
Quick Take
AI will necessitate a complete organizational overhaul rather than mere optimization.
Key Points
- AI integration requires fundamental changes in business structure.
- Companies must adapt to new workflows and processes.
- Success hinges on embracing AI as a transformative force.
📖 Reader Mode
~2 min readFor the past two years, companies have been asking the wrong question: how do we use AI in our processes?
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That question made sense at the beginning. When large language models first appeared, the instinct was natural: take what already exists, from workflows to functions, decision chains, etc., and try to accelerate them. Add copilots. Add assistants. Add automation layers. Improve productivity.
But as we’ve seen, that approach doesn’t scale. As I’ve argued in previous pieces, enterprise AI hasn’t failed because the technology doesn’t work. It has failed because we tried to place it in the wrong layer. Large language models were never designed to run a company, and embedding them into existing processes doesn’t change that structural mismatch.
Now that the initial enthusiasm has collided with reality, a different question is starting to emerge, quietly, but unmistakably: what if the problem is not how to use AI in our processes, but that our processes were never designed for AI in the first place?
The return of an old idea (this time for real)
In the 1990s, business process reengineering (BPR) promised something radical: redesign companies around information systems instead of layering technology on top of existing workflows. The idea was compelling, but the execution was uneven. Many initiatives became expensive reorganizations with limited long-term impact, partly because the underlying systems were still rigid, fragmented, and unable to adapt in real time.
This time is different.
Back then, systems were passive. They stored information, enforced rules, and supported decisions made by humans. Today, systems are becoming active: they can generate, evaluate, coordinate, and increasingly, act. That shift changes the equation entirely. It means we are no longer just digitizing processes: we are redefining what a process is.
McKinsey’s latest research on AI adoption reinforces this point: while usage is widespread, real impact correlates strongly with workflow redesign, not just tool deployment. Organizations that rethink how work is done, not just how it is assisted, are the ones seeing measurable gains.
In other words, the original promise of BPR is resurfacing, but now the technology can finally support it.
Why most processes are incompatible with AI
The uncomfortable truth is that most enterprise processes today are not just inefficient. They are structurally incompatible with the kind of systems AI is becoming.
— Originally published at finance.yahoo.com
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