How to Balance AI Automation With Human Development

I've watched companies crash and burn. Duolingo is a prime example. The company thought AI was the answer. But they got it all wrong. Their "AI-first" strategy blew up in their faces. They lost 6.7 million TikTok followers and 4.1 million on Instagram. That's a $7 billion lesson in what happens when you replace people instead of partnering with them. CEO Luis von Ahn decided to cut contractors. He claimed they would only hire if teams couldn't automate their work. Predictably, this led to chaos. Employees revolted. Users were furious. Social media went silent. 𝗛𝗲𝗿𝗲'𝘀 𝘄𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝗲𝗱: • They tossed out human expertise instead of building on it. • They saw AI as a way to save money, not as a partner. • They spread fear, not hope. • They ignored that culture and creativity can't be replaced by machines. 𝗧𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝗶𝘁 𝗿𝗶𝗴𝗵𝘁 𝗸𝗻𝗼𝘄 𝘁𝗵𝗶𝘀: AI is rewriting the rules of business, but it should only be harnessed when it is integrated with human skills, not when it replaces them. They tackle biases in AI to make sure their systems serve everyone. Microsoft found that teams using AI perform better than those that don't. 𝗛𝗲𝗿𝗲'𝘀 𝗵𝗼𝘄 𝘀𝗺𝗮𝗿𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗮𝗿𝗲 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗔𝗜 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝘄𝗮𝘆: 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗽𝗲𝗼𝗽𝗹𝗲, 𝗻𝗼𝘁 𝘁𝗵𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆: • Treat AI agents like new team members, onboard them, assign ownership, measure performance. • Set clear human-agent ratios for each function. • Invest in AI literacy training across all levels. 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗰𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻, 𝗻𝗼𝘁 𝗿𝗲𝗽𝗹𝗮𝗰𝗲𝗺𝗲𝗻𝘁 • Use AI for 24/7 availability and processing power, things humans can't provide • Keep humans in charge of judgment, creativity, and high-stakes decisions • Create "thought partner" relationships where AI challenges thinking leads to ideas 𝗦𝗰𝗮𝗹𝗲 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝗮𝗹𝗹𝘆 • Move beyond pilots to organization-wide adoption • Start with functions farthest from your competitive edge • Continuously evaluate and adjust your AI tools The truth is clear. Companies that fail to integrate AI smartly will be left behind. This concerns how AI will change your workforce and how you will lead that change. Will you lift your team up with AI, or will you create fear like Duolingo did? What's your experience with AI integration? Are you seeing partnership or replacement in your industry? The future belongs to those who master human-AI collaboration. Those who don't risk becoming the next cautionary tale. #AIvsEI #BetterTogetherAgency #Duolingo #HumanCentric  

AI is finally making services businesses scalable—and—exciting to VCs. The global services market is in the trillions of💰s, far larger than today’s software market. Yet, services businesses haven’t been the darlings of venture capital, as they were perceived to lack rapid scaling potential. 𝗔𝗜 𝗶𝘀 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝘁𝗵𝗮𝘁. By blending AI seamlessly with human expertise, there is an opportunity to get into much larger markets with models that have the potential to scale in ways services - or even SaaS businesses - can't. For example, instead of offering a marketing SaaS, an AI-powered Service-as-Software business can deliver what the customer really wants: high-quality leads or compelling content. We’ve seen this potential firsthand through Emergent Ventures’ investments in multiple AI-powered companies that leverage humans-in-the-loop. These models resonate with B2B customers because they offer faster, clearer paths to value—reliable outcomes delivered with greater efficiency. For many customers, it’s a significant upgrade over traditional agency or service-provider relationships. While the potential is huge, only a fraction of AI-powered services startups will scale. 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗱𝗲𝗽𝗲𝗻𝗱𝘀 𝗼𝗻 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝗳𝘂𝗹 𝗲𝗮𝗿𝗹𝘆 𝗰𝗵𝗼𝗶𝗰𝗲𝘀 𝗮𝗻𝗱 𝗲𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝗮𝗹 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻. Here’s what we have learned works well: 𝟭. 𝗔𝗜-𝗛𝘂𝗺𝗮𝗻 𝗦𝘆𝗻𝗲𝗿𝗴𝘆: AI and software should do the heavy lifting, with humans involved strategically— e.g. for validating AI output, edge cases, enabling adoption, or acting on AI insights. Over time, reduce human input as the AI learns, and models improve. Target 60%+ initial gross margins, with a path to SaaS-like 75%+ margins over time. 𝟮. 𝗦𝗰𝗮𝗹𝗮𝗯𝗹𝗲 𝗛𝘂𝗺𝗮𝗻 𝗜𝗻𝘃𝗼𝗹𝘃𝗲𝗺𝗲𝗻𝘁: The dependency on hiring & training humans should not constrain scale and economics. Have a path to tapping into freelancers or agency partners. Leverage human experts in a high-talent location such as India. 𝟯. 𝗥𝗲𝗰𝘂𝗿𝗿𝗶𝗻𝗴 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: Focus on high-value, recurring use-cases to ensure subscription-based revenue with strong net revenue retention (NRR). 𝟰. 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗣𝗼𝘄𝗲𝗿: Iterate to a solution that can command higher pricing, and a model that aligns incentives with customers, e.g. based on outcomes. 𝟱. 𝗗𝗮𝘁𝗮 𝗠𝗼𝗮𝘁𝘀: Build solutions that improve with use, creating compounding competitive advantages over time. 𝟲. 𝗠𝗼𝗱𝘂𝗹𝗮𝗿 𝗧𝗲𝗰𝗵: Architect a stack that can evolve with AI advancements. 𝟳. 𝗙𝘂𝗹𝗹-𝗦𝘁𝗮𝗰𝗸 𝗧𝗲𝗮𝗺: A founding team that has the technical expertise to build and rapidly improve complex AI-powered solutions, and deep operational acumen. A rare combination. These are complex businesses to build, and the right playbooks are yet to be perfected. But where this works, 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀-𝗮𝘀-𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 𝗔𝗜 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝘄𝗶𝗹𝗹 𝗿𝗲𝗱𝗲𝗳𝗶𝗻𝗲 𝗺𝗮𝗻𝘆 𝗕𝟮𝗕 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝗶𝗲𝘀 📈 #EnterpriseAI #startups #vc #SaaS

AI-driven teams scale fast—or crash hard. The real game-changer? IO psychology, and how it rewires your talent engine 👇 Most leaders focus on AI tools and forget the human element. Big mistake. Industrial-Organizational (IO) psychology is the secret sauce for AI success. It's about optimizing human performance in tech-driven environments. Here's how IO psychology transforms your AI teams: 1. Talent acquisition: Use psychometric assessments to identify AI-ready mindsets. 2. Team composition: Balance technical skills with soft skills for cohesive AI units. 3. Learning agility: Foster adaptability to keep up with rapid AI advancements. 4. Change management: Reduce resistance to AI integration through targeted interventions. 5. Performance metrics: Develop KPIs that align human efforts with AI capabilities. 6. Leadership development: Train managers to lead hybrid human-AI teams effectively. 7. Organizational culture: Build a culture that embraces AI as an enabler, not a threat. Remember: Your AI is only as good as the team behind it. Invest in your people's psychology, and watch your AI initiatives soar. Elevate your human capital to match your technological ambitions.