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- Thought Piece: The backwards approach to AI
Thought Piece: The backwards approach to AI
The AI mistake costing companies millions
Hi there,
Let's clear this up from the start—AI and automation aren't the same. Automation follows rules. AI reasons and learns.
Automation is great for efficiency. It speeds up repetitive tasks, reduces human error, and cuts costs. But it doesn't adapt. If conditions change beyond what it was programmed for, automation breaks. AI, on the other hand, learns from patterns, refines itself, and makes decisions based on evolving data—if you allow it.
A macro follows a fixed script—fast, efficient, but rigid. It can't handle edge cases or rethink the process when inputs change. A business analyst, especially one augmented by AI, can identify patterns, adapt to new data, and make judgment calls in real time. That's the shift we're talking about—moving from rule-following tools to systems that learn, reason, and respond.
This distinction matters because businesses often confuse automation with AI. They think slapping a chatbot onto a website or adding content generation to internal workflows makes them "AI-driven." It doesn't. AI isn't about faster execution—it's about smarter decision-making at every level.
How Next-Gen Transformation differs from traditional approaches
Walking through a century-old aircraft engine plant in Lynn, Massachusetts, I witnessed something remarkable. Amidst the massive testing bays and equipment that hadn't changed much since the 1960s, AI systems were silently optimizing engine performance parameters, predicting maintenance needs, and fine-tuning production workflows in real-time. Instead of workers learning new software—the software was learning from them. This was more than just another digital upgrade—it marked a fundamental shift in how technology integrates with human expertise.

© KLM
Traditional digital transformation often feels like forcing a square peg into a round hole—trying to make your organization fit pre-built software and standardized processes. Next-gen digital transformation flips this paradigm entirely. It blends your organization's proprietary expertise with purpose-built AI and custom self-maintaining software to enhance operations without upending them.
Importantly, next-gen digital transformation isn't just "digital transformation, but this time with AI." It's a fundamental shift in how we think about technology adoption. It moves away from rigid standardization, supports expertise rather than replacing it, and integrates seamlessly into existing workflows without requiring massive change management.
If you want to deep dive into this model, my new book "100x: An Executive Brief for AI-Driven Business Results" unpacks exactly how to connect People, Software & Data, and Intelligence to achieve transformative ROI.
Benefits overview
When AI and software are purpose-built to amplify human expertise rather than replace it, the benefits ripple far beyond operational efficiency:
Enhanced employee engagement – By having technology adapt to people rather than forcing people to adapt to technology
Speed to value – Instead of waiting years for ROI, organizations see improvements in weeks or months
Reduced risk – By working with existing processes rather than replacing them, the risk of disruption plummets
Preserved expertise – Valuable institutional knowledge is enhanced rather than replaced
Continuous improvement – Systems get smarter over time, creating compound returns on investment
These benefits aren't isolated wins—they build on each other, creating momentum that drives long-term growth and resilience.
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At Lighthouse, we love featuring fresh perspectives from our community of AI, tech, and innovation leaders. Got insights to share? Just reply to this email—I’d love to hear from you!
Much Love,
Matt
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