AI of the Coast: 7 Years to General AI

AI of the Coast: 7 Years to General AI

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Startup COO should cost $800 monthly. Not more!
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Welcome to AI Off the Coast, your front-row seat to the innovations, strategies, and infrastructure driving us toward General AI within the next five years. Goal? Share insights, highlight emerging opportunities, and connect with future innovators.
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Startup COO should cost $800 monthly. Not more!

AI-Powered Fractional COOs: Silicon Snake Oil or Operational Revolution?

Jiri "Skzites" Fiala's avatar
Jiri "Skzites" Fiala
Mar 05, 2025
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AI of the Coast: 7 Years to General AI
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Startup COO should cost $800 monthly. Not more!
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The corporate world's newest obsession might just be its most hilarious yet...

The Great COO Replacement Fantasy

Let's face it, folks—the business world is having yet another torrid love affair with AI.

Only this time, we're not just relegating it to customer service chatbots that make you want to hurl your laptop through a window. No, now we're aiming higher: the C-suite itself. AI-powered Fractional COOs are the hot new trend that promises to turn your operational chaos into a well-oiled machine without those pesky human leadership salaries.

But wait—haven't we heard this song before?

The same lyrics set to a slightly different melody?

Here's where my contrarian alarm starts blaring like a smoke detector at 3 AM: Most companies can't even get their Slack channels organized, yet we're supposed to believe AI will seamlessly integrate with your operations and make strategic decisions?

The same operations where Karen from accounting still emails Excel spreadsheets named "FINAL_FINAL_v7_ACTUALLY_FINAL.xlsx"?

Consider this mind-bending statistic: NVIDIA makes $3.6 million in revenue per employee—more than Apple, Meta, and most Fortune 500 companies combined. Even more astonishing?

Their profit per employee hits a jaw-dropping $2 million.

Meanwhile, your average mid-market business or startup struggles to hit $200,000 per employee.

So we're supposed to believe that slapping an AI Band-Aid on your operational hemorrhage will suddenly give you NVIDIA-like efficiency?

Please.

Pass whatever the Silicon Valley VCs are smoking.

Here's the real kicker—if NVIDIA, essentially a hardware manufacturer (yes, I know they do more, but at their core, they make expensive rectangles with fans), can achieve this kind of efficiency, what's your excuse?

They're not even a pure software play!

They're literally moving atoms around, dealing with supply chains and chip shortages, and they're still spanking everyone else in the revenue-per-employee Olympics.

Let me pose some uncomfortable questions:

  • If AI is so smart, why do most businesses still struggle to implement basic automation?

  • How many "AI solutions" are really just fancy if/then statements wrapped in venture capital marketing?

  • When was the last time your company actually used all the features of the software you're already paying for?

  • What happens when your AI COO encounters a truly novel business situation that wasn't in its training data?

  • If autonomous AI-powered businesses are the future, why are we still watching tech giants hire thousands of engineers while simultaneously laying off thousands more?

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Look, I've been in business long enough to recognize a gold rush when I see one. And right now, vendors are selling digital pickaxes to companies desperate to strike AI gold.

But here's where it gets interesting...

The Strategic Reality: AI as Operational Ammunition

With a Side of Solopreneurial Revolution → come on, I know You want it! :)

Despite my skepticism (which, admittedly, I wear like a comfortable old sweater), there's something genuinely revolutionary happening beneath the hype.

The key insight isn't that AI will replace COOs.

It's that AI is creating an entirely new operational layer—a digital nervous system that can process information at a speed and scale no human team could match.

Let me share a case study that changed my mind:

Case Study: Undisclose Startup in Undisclosed location (with a large iconic bridge and a lot of empty offices near the pier)

This mid-sized SaaS company implemented an AI operations layer that monitored cash flow across 12 different product lines. Within the first month, the system identified a critical billing issue affecting 3.2% of customers—small enough to fly under the radar of quarterly reviews, but large enough to cause a $427,000 annual revenue leak.

The human COO didn't lose her job.

Instead, she leveraged this insight to restructure the billing system and focused her expertise on high-value strategic tasks while the AI handled the monitoring.

The result?

A 14% increase in operational efficiency and an 8% boost in profit margins within one quarter.

This isn't about replacement—it's about augmentation.

The most successful implementations are happening where companies view AI not as a magic bullet, but as specialized ammunition for very specific operational targets.

The Solopreneur Elephant in the Room

Here's where things get truly controversial.

Recent reports show companies like Lovable and Bolt hitting $15 million in annual revenue with just 15 employees—that's a staggering $1 million per person.

Cursor allegedly reached $100 million with just 20 people.

Midjourney? $300 million with 131 employees.

These numbers should terrify traditional business leaders. They're not just efficient—they're operating in an entirely different dimensional reality.

The dirty little secret?

It might not be about having a fancy AI COO after all. It might be about throwing out the entire operational playbook.

Consider the math:

  • Traditional SaaS: $150K-$250K revenue per employee

  • AI-powered autonomous businesses: $2M-$3M+ per employee

  • NVIDIA: $3.6M per employee

  • Cursor: $5M per employee

What if traditional operational structures are the problem?

What if the path to Cursor and NVIDIA-like efficiency isn't sophisticated AI management, but radically reimagining what an organization needs to be in the first place?

The Implementation Reality: How to Actually Make This Work

Now that we've moved past the existential panic and the utopian fantasies, let's talk practical implementation. Because let's be honest, the gap between AI promise and AI reality is wider than the salary difference between you and your CEO. Sometimes.

The NVIDIA Paradox: Can You Really Get There?

Let's address the $3.6 million elephant in the room. NVIDIA's revenue-per-employee metric is the stuff of corporate wet dreams. But here's the uncomfortable truth: NVIDIA didn't get there by implementing AI efficiencies on top of a traditional business model. They architected their entire business around a fundamentally different approach to value creation.

Their product strategy is elegantly focused—make the best chips for AI, period. There's no "let's also create a social network" or "maybe we should get into ride-sharing."

Unlike Amazon and Tesla (the least efficient of the BATMMAAN cohort), they're not diversifying into every shiny object that catches the CEO's eye.

Can you follow their lead?

Probably not if you're just bolting AI onto existing processes and expecting NVIDIA-like results.

And that brings us to implementation...

Step 1: Identify Operational Data Sources

Before you can have an AI-powered anything, you need data. Clean, structured, accessible data. This is where most companies face their first rude awakening.

Start by mapping your operational data sources:

  • Financial systems (accounting software, banking platforms, payment processors)

  • Customer data (CRM, support tickets, order history)

  • Operational metrics (production rates, delivery times, quality control)

  • Team performance indicators (project management tools, time tracking)

Common Pitfall #1: Assuming your data is ready for AI consumption. Spoiler alert: it's probably not. Most companies have data scattered across systems like holiday decorations after a toddler's birthday party.

Step 2: Define Specific Operational Objectives

The companies seeing real value aren't asking AI to "optimize operations." That's like asking a personal trainer to "make you healthy." Too vague to be useful.

Instead, define specific operational objectives:

  • Reduce cash flow surprises by predicting revenue shortfalls 30 days in advance

  • Automate approval workflows for purchases under $10,000

  • Identify potential supply chain disruptions based on vendor performance patterns

  • Optimize inventory levels to reduce carrying costs without risking stockouts

Common Pitfall #2: Setting objectives that are too broad or unmeasurable. "Improve efficiency" is not specific enough. "Reduce order-to-delivery time by 15%" gives AI something concrete to optimize.

Step 3: Start Small, Then Expand

The most successful implementations start with a single operational area, prove value, then expand. This approach builds organizational confidence and gives you time to adapt your processes.

Example implementation roadmap:

  1. Month 1-2: Implement AI financial monitoring for cash flow prediction

  2. Month 3-4: Add automated and AI invoked approval workflows for routine operational decisions

  3. Month 5-6: Integrate inventory and supply chain optimization

  4. Month 7-9: Expand to customer success metrics and team performance

Common Pitfall #3: The big bang approach. Trying to transform all operations simultaneously is the organizational equivalent of trying to change all four tires while driving on the highway.

Step 4: Define the Human-AI Interface

The most critical step is defining when and how humans interface with the AI system. This isn't just a technical question—it's a governance question.

Create clear rules for:

  • Which decisions AI can make autonomously (typically high-frequency, low-risk decisions)

  • Which decisions require human review

  • How exceptions and anomalies are handled

  • Who has override authority and under what circumstances

Common Pitfall #4: Unclear decision rights. Without explicit governance, you'll either have dangerous AI autonomy or such restrictive human oversight that you lose the efficiency benefits.

What You Can Actually Expect: Realistic Results

Let's cut through the marketing hyperbole and talk about what you can realistically expect from an AI-powered operational layer. We have seen it dozens of times across companies all around the world that run with our implementation (that is another pitfall a lot of companies make; kind of we know what we’re doing, we have a lady for it!!! → no, you don’t. Unless you have done it 10 times before, you will burn yourself faster than Joan of Arc):

The Good:

  • Early Warning Systems: AI excels at spotting patterns that indicate future problems. Expect 15-30 day early warnings on cash flow issues, supply chain disruptions, and customer churn signals.

  • Decision Acceleration: Approval workflows that once took days can happen in minutes. Companies typically see a 60-80% reduction in routine decision delay.

  • Insight Discovery: AI can identify non-obvious correlations between operational variables. One client discovered their customer satisfaction scores were directly linked to a specific step in their manufacturing process.

  • Time Recapture: Leadership teams report gaining back 15-25 hours per week previously spent on routine operational monitoring and decisions.

The Realistic:

  • Implementation Timeline: Expect 2-4 months before you see significant value, not the "instant insights" promised in sales pitches.

  • Ongoing Tuning: These systems require regular refinement as your business evolves. It's not "set and forget."

  • Cost Reality: Total cost typically includes external people and solutions that know what they are doing ($2,000-$8,000/month depending on scale), integration work ($10,000-$50,000), and ongoing maintenance.

The Challenge:

  • Change Management: Your team will need to adapt to new workflows and trust the AI's recommendations. This cultural shift is often the biggest hurdle.

  • Edge Cases: Every business has unique situations that won't fit neatly into AI models. You'll need processes for handling these exceptions.

  • Data Quality Issues: The "garbage in, garbage out" principle applies. Many companies discover uncomfortable truths about their data quality.

Welcome to the Tiny-Team Revolution

The reality of AI-powered operations isn't the job apocalypse that keeps executives awake at night. Nor is it the operational nirvana that vendors promise in their slick demos.

It's something far more disruptive: the rise of what I call "concentrated value creation"—where tiny teams of 10-20 people build businesses that traditionally required hundreds or thousands.

Look at the data from companies like Midjourney ($300M with 131 people), Cursor ($100M with 20 people), or even giants like NVIDIA ($3.6M revenue and $2M profit per employee).

The pattern is clear: we're not just becoming more efficient—we're witnessing a fundamental recalibration of how many humans a business actually needs.

Consider the contrast: NVIDIA, making chips—physical products requiring supply chains, manufacturing processes, and shipping logistics—generates $3.6M per employee. Amazon, drowning in 1.6 million employees (nearly twice as many as the rest of the BATMMAAN tech giants combined), sits at the bottom of the efficiency rankings.

It's not that Amazon is poorly run; it's that their business model fundamentally requires more humans. Or does it?

This isn't about AI replacing humans. It's about AI enabling a completely different organizational structure.

Traditional business structures are built around human cognitive limitations. We hire middle managers because humans can only effectively manage 7-10 direct reports. We create departments because humans need clear boundaries to function. We build hierarchies because information flows have cognitive bottlenecks.

But what if AI removes those bottlenecks?

Leave a comment

What if AI enables a radically flatter, smaller, more concentrated business model?

The Uncomfortable Questions

  • What if most mid-market companies could operate with 80% fewer people?

  • What if large enterprises are mostly solving problems created by their own size and complexity?

  • What if the role of an operations executive isn't to manage complexity but to ruthlessly eliminate it?

  • What if the best AI strategy isn't adding AI to your business, but recreating your business around AI?

  • What if NVIDIA's efficiency isn't an anomaly but a preview of what's possible?

The most successful companies won't be asking how to use AI to make their existing operations more efficient.

They'll be asking how to rebuild their entire business around what's newly possible.

The truth is, most companies are held back not by technological limitations, but by organizational inertia, outdated structures, and a fundamental reluctance to question whether 90% of what they're doing is actually necessary.

In five years, we won't be talking about "AI-powered COOs" any more than we talk about "electricity-powered offices."

The interesting companies will be the ones where the humans are so strategically deployed and the operations so fundamentally reimagined that they achieve what once seemed impossible: NVIDIA-like efficiency without NVIDIA-like products or scale.

The question isn't whether to adopt AI for operations—that's like asking in 1995 whether your business should get email.

The question is whether you're willing to fundamentally reimagine your entire organizational structure, or if you're just looking for a fancy digital assistant to help you do the same old things slightly faster.

Are you ready for that conversation?

The new breed of tiny-team unicorns is already having it.

NVIDIA has answered it to the tune of $2 million in profit per employee.

Your move.

From Europe with love,

JF.

BTW: Those $800 in the title were not fun. Right now it costs around $4k per month to run custom made AI COO. But its mostly in just getting to the right product-market-fit phase without scaling. So those $800? Give it a month or two, we will get there…

Some further reading (or DM me on LN for more jokeless discussion):

  • Harnessing Artificial Intelligence for Business and Entrepreneurship Transformation
    Attah, E. Y., & Anaba, M. I. (2025).
    Read Full PDF

    • This study investigates how AI is revolutionizing business operations and decision-making, supporting the idea that AI is augmenting rather than replacing executives.

  • Revolutionizing Sales Enablement: A Theoretical and Empirical Review of Leadership, Technology, and Market Trends
    Shah, W., & Abbas, A. (2025).
    Read Full PDF

    • Discusses AI’s increasing role in leadership and business operations, aligning with the theme of AI-driven operational efficiency.

  • Generative AI-Driven Automation in Integrated Payment Solutions
    Sriram, H. K., & Seenu, A. (2025).
    Read Full PDF

    • Examines how AI is transforming financial transactions, reinforcing the efficiency AI can bring to operational processes.

  • The Intersection of Technology and Business Ethics
    Kabir, M. E. (2025). Journal of Business Economics and Management.
    Read Full PDF

    • Explores the ethical and operational implications of AI, touching on its transformative effects on traditional business structures.

  • Advanced Supply Chain Analytics: Leveraging Digital Twins, IoT, and Blockchain for Resilient, Data-Driven Business Operations
    Owusu-Berko, L. (2025).
    Read Full PDF

    • Supports the argument that AI is driving operational efficiency through automation and predictive analytics.

  • AI-Powered Supply Chain Innovation: From Predictive Analytics to Warehouse Automation
    Palla, S. R. (2025).
    Read Full PDF

    • Highlights AI’s role in optimizing operational processes, relevant to AI-driven COO functions.

  • The Convergence of Sales and Technology: How Digital Adoption Reshapes Sales Strategies
    Ahmed, S., & Abbas, A. (2025).
    Read Full PDF

    • Explores how AI adoption is reshaping business efficiency, aligning with the article’s discussion of operational transformation.

  • Human-Artificial Intelligence Collaboration in Supply Chain Outcomes: The Mediating Role of Responsible AI
    Vann Yaroson, E., Abadie, A., & Roux, M. (2025). Annals of Operations Research.
    Read Full PDF

    • Examines AI’s role in decision-making and operational efficiency, reinforcing the augmentation rather than replacement argument.


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By Jiri "Skzites" Fiala · Launched a year ago
Welcome to AI Off the Coast, your front-row seat to the innovations, strategies, and infrastructure driving us toward General AI within the next five years. Goal? Share insights, highlight emerging opportunities, and connect with future innovators.
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AI of the Coast: 7 Years to General AI
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Startup COO should cost $800 monthly. Not more!
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Alfredo's avatar
Alfredo
Mar 12

Ours is even less costly, we don't have one!!! :D

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Jack "The AI Guru" Violet's avatar
Jack "The AI Guru" Violet
Mar 5

Already trying to build something like this in our company. It is hard.

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