Navigating the AI Hype: A Practical Approach for Small Businesses

I didn't expect to have the same conversation three times in one week. Yet, there I was, watching another founder's excitement fade as they realized their costly AI tool wasn't the solution they had envisioned.

"But everyone said this would save me 10 hours a week," they told me, gesturing at the dashboard of their new AI writing assistant. The blinking cursor stared back at us, waiting for a prompt that neither of us knew how to write effectively.

The AI gold rush has created a strange paradox. We are both over-automating and under-utilizing these technologies. Tools get purchased, accounts get created, and then... not much happens. Worse still, we often add disjointed workflows that slow us down.

The truth is that most small businesses fail with AI not due to incorrect tools, but because they try to automate processes that don't actually exist yet.

Understanding the Automation Failures

I frequently encounter founders who haven't documented their customer onboarding processes. They attempt to automate it. Teams without an agreed content strategy try to delegate to AI. Business owners who haven't defined their criteria for a qualified lead attempt to build an AI-powered lead scoring system.

We're asking AI to execute against invisible standards that exist only in our heads. It's no surprise when it fails to read our minds.

Last month, I worked with a service-based business that spent nearly $6,000 on various AI subscriptions. When we mapped their workflows, we discovered they were using only 8% of the functionality they were paying for. This wasn't due to poorly designed tools. The issue was that nobody had taken the time to define what success should look like before implementing them.

The Pressure to Appear Advanced

There's a quiet pressure among small business owners to seem technologically advanced. They want to be "data-driven" and "AI-enhanced," even when these elements may not serve the actual work. I've seen founders stress over automating infrequent processes. Others build complex systems for decisions best made by human judgment.

Not everything needs to be automated; almost nothing should be automated first.

My approach with clients is simple: Document before you delegate, and delegate before you automate. It may not be glamorous, nor does it promise instant success, but it works.

Identifying Broken Processes

What does a broken process look like compared to a functional one? The difference is subtle yet significant.

A broken process is vague and reactive. It exists solely in someone's mind and fluctuates with their mood. Documentation is non-existent, or at best, scattered in notes. Decisions become inconsistent, and work varies each time.

A functional process has clear touchpoints and boundaries. Documentation exists, even if it's imperfect. Clear moments for decision-making are defined—such as proposal approvals on Tuesdays, content planning in the first week of the month, and upgrade conversations after the third client call. These moments create structured space for work to flow.

These defined moments are where AI can truly excel:

• In sales, it's the follow-up email sequence that consistently occurs three days after a discovery call.

• In operations, it's the Thursday afternoon client status report, consolidating the same five data points.

• In marketing, it's the monthly content refresh, updating old blog posts with new information.

  
  

Finding Where AI Can Help

If you're curious about where AI can serve your business right now, consider these three practical steps:

1. Track Your Week's Repetitive Tasks. For five days, log any tasks that feel familiar—"I've done this before." Don’t analyze yet; just note what each task is, how long it takes, and how often you perform it.

   
   

2. Look for Emotional Friction. Identify tasks that provoke sighs or procrastination. These friction points often indicate ideal automation candidates—not because they consume the most time, but because improving them brings significant relief.

   
   

3. Document One Task's Current Reality. What information do you need to complete this task? What decisions must be made? What does success look like? This documentation will serve as your blueprint for automation.

   
   

The Importance of Clarity

The goal isn't to determine what AI can do. Instead, focus on identifying what you consistently do that AI could effectively support.

Before purchasing another AI tool or abandoning your current ones, take a moment. Map the process you aim to enhance. Document your standards and decision-making criteria. Clarify what success means for you.

Then, provide AI with concrete information to work with—not your aspirations, fears about falling behind, or hopes for exponential growth, but your current reality.

AI tools are not magic. They serve as mirrors, reflecting the clarity or confusion you present to them. No level of technological sophistication can compensate for a lack of foundational understanding.

Embracing a Revolutionary Truth

There’s something quietly revolutionary about this approach. It isn’t about being innovative but rather being grounded in a truth we often overlook: real transformation isn't about finding the right tool; it's about understanding what we're truly building.

In this rapidly evolving landscape, let’s move beyond the hype. Focus on documenting, defining, and refining your processes. Only then can you unlock the true potential of AI for your business growth.