The Hidden Cost of AI Automation

Author

Stefan Wirth
February 23, 2025

Hi Mate đź‘‹,

Ever tried implementing AI and found yourself stuck between hype and reality? You're not alone.

What's new

This week, I've been deep in the trenches implementing AI for internal processes. One interesting case: we built a file sorting system where AI handles 80% of the work, while 20% needs human review. It's not perfect, but it's practical.

Insight

The key to successful AI implementation isn't perfect accuracy - it's building trust through transparency.

Think of AI like a junior employee. You wouldn't expect a new hire to handle everything perfectly from day one. Instead, you'd set up checkpoints and review processes. The same applies to AI systems.

Three crucial lessons:
1. Always build a fallback mechanism
2. Start with an 80/20 approach (80% automation, 20% human review)
3. Be transparent about the system's limitations

The moment users lose trust in your AI system, they'll start double-checking everything - and that defeats the whole purpose of automation.

Becoming a Learning Machine

I’m currently reading: Masters of Scale

Rating: 3.5/5

Some good learnings in there, but most of it is only applicable to VC funded startups and/or if you’re trying to raise venture funding.

Still always good to know how the other side things ;)

My Latest Video

Last week I built a custom Claude project while laying in bed with fever.

It’s a customized Claude wrapper that covers all the normal workflows that I use in my day to day that are often cumbersome in Claude.

Check it out ⬇️

Talk Soon,
Stefan