Why AI Won't Help Until Your Processes Are in Order: How Simple Automation Can Save $290K+ Annually

Why AI Won't Help Until Your Processes Are in Order: How Simple Automation Can Save $290K+ Annually

During a recent conversation with an accounting firm, we identified an incredible opportunity for operational improvement. Just one of their core processes, which takes up thousands of hours each year, could be automated to save over 5,800 hours annually—translating to potential cost savings of more than $290,000. What stood out, however, wasn’t just the size of the savings (from just one scenario), but the simplicity of the solution. None of it involved artificial intelligence (AI). The entire improvement was based on straightforward, logic-driven automation and basic system integration.

This highlights a key point that’s often overlooked: before diving into AI, businesses need to ensure their foundational processes are efficient. AI can only optimize what’s already working well—it’s not a magic bullet.

Many organizations are enticed by the promise of AI to transform their operations, but without getting the basics right, AI won’t solve underlying inefficiencies. In fact, implementing AI into disjointed, manual processes can create more problems than it fixes. AI can only optimize what’s already working well—it’s not a magic bullet.

For this accounting firm, the bottlenecks were classic examples of manual tasks that bog down efficiency—like data reconciliation, reporting, and administrative follow-ups. These are tasks that can and should be automated with well-established tools. By integrating their existing systems and automating repetitive steps, they could significantly reduce the time employees spend on non-essential tasks, without the need for advanced algorithms or AI.

This example underlines a critical lesson for any business considering digital transformation. Fancy tech like AI grabs headlines, but it isn’t a solution for every problem. The real game-changer, in many cases, is applying logical automation to streamline workflows. System integration—connecting existing software tools so they “talk” to each other—is often enough to eliminate inefficiencies. It’s these simpler, cost-effective changes that free up time for more valuable work and make a tangible difference to a company’s bottom line.

AI is designed to enhance and automate complex decision-making processes, but if your basic systems aren’t functioning efficiently, AI won’t fix that. In fact, it may only highlight the inefficiencies even more. Automation based on logical processes, on the other hand, is a fast, reliable way to reduce manual work and streamline business operations without the complexity of AI.

This is why, at NEXUSsoft, we focus on getting the fundamentals right before considering advanced technologies. Our bespoke software solutions are built for each customer around continuous improvement, ensuring that businesses have a solid operational foundation. Only once those foundational processes are optimised can you even begin to consider leveraging AI for further refinement.

For the accounting firm in question, simply automating one process could save them nearly $300,000 per year. Once that kind of efficiency is achieved, further advancements—like AI—can be introduced incrementally, and only where it genuinely adds value.

In conclusion, businesses should focus first on logical automation and system integration to drive efficiency. Without an optimised foundation, even the most sophisticated AI won't make a shred of difference. Before investing in the next big technology, make sure your house is in order.

Ronan Leonard

GTM Engineer | intelligentresourcing.co

4 个月

Impressive insight, Sean. It's a great reminder that solid foundational processes are essential before diving into advanced tech like AI. That $290K in potential savings shows just how powerful straightforward automation can be when applied effectively!

Matthew Whyatt

Helping B2B Software Companies Scale Through Strategy, Sales and Marketing

5 个月

I once had a colleague say to me that Automation will only allow you to do dumb stuff faster if you don't consider the overall issue.

John Babic

|Technology and AI News | Contributor | Blog | Connect and Chat Tech

5 个月

Excellent points, the workflows and processes need to be mapped out first. Only then can you work out what parts AI can really make its benefits known. It’s cumbersome, boring at times but also so many people will often get a clearer picture of what they are wasting time on, or gaps in processes that need filling, and hopefully, automating!

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Bret Watson

The guy from Special Circumstances | I fix Tech organisations

5 个月

I've done consultations where I made the client sad by saying "no application is going to make that area better until you all work to one process"

David Ogilvie

Business Strategy Consultant | Independent ERP Expert | Supply Chain Specialist | Advisor | Author | Speaker | Business Commentator

5 个月

?? and the other unasked question is, are you using public or private LLMs? If private, what have they been trained on? And do you know what investment it takes to train an LLM?

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