🧭 Dojo Compass
Module: Finance, Risk Management and Long-Term Resilience
Focus Area: Technology, AI and Future Readiness
Learning Format: Article
Artificial intelligence is changing how work is performed. Tasks that previously required hours or days of human effort can increasingly be completed in minutes or seconds. AI models can assist employees with research, analysis, writing and problem-solving, while AI agents can execute sequences of activities, interact with software systems and automate entire workflows.
These developments create substantial opportunities for productivity and organizational improvement. However, they also introduce a new management challenge.
Making AI available to employees or deploying AI agents does not automatically produce better business performance. AI-related activities must be managed, monitored and integrated into the company’s operations.
The difficulty is that many established management practices were developed around human workers, human working speeds and human organizational structures. Applying these practices unchanged to AI-enabled work can create unnecessary delays, inefficient oversight and missed productivity opportunities.
This article explores why effective AI adoption requires effective management, and why management itself needs to evolve to accommodate a new operating environment in which humans and AI work together.
🎯 Key Challenge
For generations, management principles have been developed around the characteristics of human work.
Tasks are assigned to individuals or teams. Employees receive instructions, perform activities, report progress and submit their work for review. Managers coordinate priorities, monitor performance, provide feedback and authorize important decisions.
These processes are designed around certain practical realities:
- People have limited working capacity.
- Tasks take time to complete.
- Communication and coordination create delays.
- Employees require training and supervision.
- Work quality varies and needs to be assessed.
- Managers have limited capacity to monitor individual activities.
AI changes many of these assumptions.
Consider three situations.
1. The speed mismatch
An employee may previously have spent an entire morning researching a market, preparing a report or analyzing a set of documents.
With AI assistance, an initial analysis may now be produced in seconds or minutes.
Yet the company may still apply its traditional management process: the employee prepares the work, submits it to a manager, waits for feedback, makes revisions and resubmits it for approval.
A process designed around human working speeds may now take considerably longer than the underlying task.
If a company continues managing AI-enabled work according to the same timelines and procedures, it may sacrifice a substantial portion of the productivity improvement that AI makes possible.
2. The supervision mismatch
Traditional management assumes that managers can observe employees, review their work and provide guidance.
AI-related activities are different. An employee may interact with a model hundreds of times during a working day, or an AI agent may execute numerous activities without direct human involvement.
It is neither practical nor desirable for a manager to review every prompt, response or automated action.
The company must determine which activities require oversight, what should be monitored automatically and where human intervention is necessary.
3. The accountability mismatch
When an employee performs a task, responsibility can generally be assigned to that individual, subject to the company’s organizational and legal arrangements.
AI introduces additional questions.
Who is responsible when an AI system produces an inaccurate analysis? Who approves an agent’s authority to modify company records or communicate with customers? Who verifies the output before it is used in a material business decision?
The answers cannot simply be delegated to the AI system itself.
Companies need clear accountability structures covering the people who select, configure, supervise and rely on AI systems.
These situations illustrate a broader point:
AI does not eliminate the need for management. It changes what needs to be managed and how management should be performed.
The challenge is to develop management practices that take advantage of AI’s speed and capabilities without sacrificing quality, accountability or control.
🥋 Dojo Solution
Manage the AI-enabled workflow, not just the people or the technology
The traditional management model generally focuses on organizing and supervising human activities.
In an AI-enabled organization, management needs to consider a broader operating system involving:
- Employees using general-purpose AI models.
- Specialized AI applications supporting particular functions.
- AI systems integrated into existing software and business processes.
- Automated workflows connecting different applications.
- AI agents performing tasks with varying degrees of autonomy.
- Human employees reviewing, directing and making decisions based on AI outputs.
These elements increasingly operate together.
An employee may use an AI model to research a subject, another system to analyze information, an agent to retrieve company records and a human manager to approve the final recommendation.
The appropriate unit of management is therefore not necessarily the individual employee or AI application. It is the complete workflow through which work is performed and value is created.
This requires management to rethink several established principles.
1. Rethink the relationship between time and task management
Traditional management frequently organizes work around deadlines, schedules and reporting intervals.
These remain important, but AI changes the relationship between the time required to perform a task and the time required to manage it.
If an AI system can complete an analysis in 30 seconds, a management process requiring two days for approval may be disproportionate.
Companies should examine whether their existing management procedures introduce unnecessary delays into AI-enabled workflows.
This does not mean that every decision should be made immediately. Some decisions require careful consideration regardless of how quickly the supporting work can be performed.
The objective is to distinguish between the time required for substantive judgment and the time consumed by administrative processes that no longer need to exist.
2. Rethink supervision and human oversight
AI systems require supervision, but traditional methods of supervising human employees may not be appropriate.
Instead of reviewing every activity, management should establish controls based on the nature, importance and risk of the work.
Some AI outputs may require little intervention. Others may need automated verification, sampling, employee review or formal approval.
The objective is to create an appropriate balance between automation and human judgment.
3. Rethink accountability and authority
AI systems can perform activities, but they should not obscure organizational responsibility.
Companies need to determine who is authorized to deploy AI applications, define their permissions, approve their outputs and intervene when problems arise.
The greater the autonomy and potential impact of an AI system, the more important it becomes to establish clear boundaries and accountability.
4. Rethink performance measurement
Measuring AI productivity simply by the number of tasks completed or the speed of execution can be misleading.
Management needs to examine whether AI is improving the quality, cost, reliability and contribution of work to business objectives.
An AI system that generates 100 reports in a minute is not necessarily more valuable than one that generates five accurate reports that support better decisions.
The ultimate objective remains the creation of business value.
🏗️ Putting It into Practice
The following framework provides a starting point for managing AI-enabled workflows.
Step 1: Identify and map AI-enabled activities
Begin by understanding where AI is being used within the company.
This should include more than formally deployed AI agents or specialized software. It should also include employees’ use of general-purpose models for everyday work.
Review the principal business functions:
- Research and information gathering.
- Sales and marketing.
- Customer service.
- Finance and accounting.
- Human resources.
- Software development and technical operations.
- Legal and compliance activities.
- Management reporting and decision support.
- Internal administration and coordination.
For each activity, identify:
- What task is being performed?
- Who or what performs it?
- Which AI systems are involved?
- What information does the system access?
- What decisions or outputs result?
- Who reviews or approves the work?
- What happens if the system produces an incorrect result?
The purpose is to understand how work is actually being performed, rather than relying exclusively on formal organizational descriptions.
A company may discover that employees are using AI in ways that have never been incorporated into official workflows. It may also discover opportunities to connect activities that are currently performed separately.
Step 2: Establish appropriate levels of AI autonomy
Not every AI application should have the same degree of authority.
A useful starting point is to classify AI-enabled activities according to the extent of human involvement.
| Level | Operating model | Example |
|---|---|---|
| 1. AI assistance | AI supports an employee performing a task | Drafting, research or summarization |
| 2. AI preparation | AI completes an initial task, with human review before use | Preparing a financial analysis or customer proposal |
| 3. Supervised automation | AI executes a defined workflow, with monitoring and intervention available | Processing routine requests or updating internal records |
| 4. Bounded autonomy | AI executes approved activities within defined permissions and limits | An agent managing a routine workflow subject to specified controls |
| 5. High-impact delegated activity | AI performs activities that may have significant consequences | Actions affecting financial commitments, legal obligations or important customer decisions |
The final category requires particularly careful treatment. In many circumstances, the appropriate model will be to require human authorization before the action is executed.
This classification is not intended to imply that all activities should progressively move toward greater autonomy. Some tasks are better performed with substantial human involvement.
The important thing is to determine the appropriate level of delegation for each workflow.
Step 3: Redesign workflow timelines around AI capabilities
This is one of the most important opportunities for productivity improvement.
Companies should examine how much time is consumed by the actual work and how much is consumed by the management process surrounding it.
Consider a traditional workflow for preparing a market research report:
| Activity | Traditional process |
|---|---|
| Research | Employee spends several hours gathering information |
| Initial analysis | Employee prepares a preliminary report |
| Management review | Report is submitted and reviewed the following day |
| Revisions | Employee makes requested changes |
| Final approval | Manager reviews the revised report |
| Completion | Report is circulated several days after work began |
An AI-enabled workflow might look very different:
- AI gathers and organizes relevant information.
- AI prepares an initial analysis.
- AI identifies uncertainties, gaps and potential inconsistencies.
- The employee reviews the analysis and corrects or supplements it.
- The manager reviews the final conclusions where appropriate.
- The report is completed and distributed.
Much of this work may be completed within minutes.
The important improvement is not simply that AI performs research more quickly. It is that the entire workflow can be reorganized to take advantage of the reduced time required.
Management should therefore examine:
- Whether approvals can be simplified.
- Whether reviews can take place within the same workflow.
- Whether routine checks can be automated.
- Whether employees can receive immediate feedback.
- Whether tasks can be completed in parallel rather than sequentially.
- Whether management reporting can become more frequent and timely.
The objective is to avoid managing a seconds-based workflow through a days-based organizational structure.
Step 4: Design human-in-the-loop controls
Speed is valuable, but it should not come at the expense of reliability.
AI systems can produce inaccurate information, misunderstand instructions, omit important context or execute actions that have unintended consequences.
Human oversight should therefore be deliberately incorporated into the workflow.
However, requiring employees to check every AI output can eliminate much of the productivity advantage.
The challenge is to determine where human involvement creates the greatest value.
A useful approach is to distinguish between three types of controls.
A. Automated controls
These are checks that can be performed by software or another AI system.
Examples include:
- Checking whether required fields have been completed.
- Comparing calculations against defined rules.
- Validating data formats.
- Checking whether an output falls within specified limits.
- Identifying inconsistencies between documents.
- Confirming that an agent has not exceeded its authorized permissions.
Automated controls are particularly useful for routine, repetitive checks.
B. Human review
Some outputs should be reviewed by an employee with appropriate knowledge and authority.
Examples include:
- Reviewing an important customer proposal.
- Verifying a material financial analysis.
- Checking software code before production deployment.
- Assessing a legal or regulatory interpretation.
- Reviewing a recommendation that could materially affect the company’s strategy.
The review should focus on the aspects where human judgment is most valuable, rather than simply repeating work already performed by AI.
C. Human authorization
Certain actions should require explicit human approval before execution.
Examples may include:
- Making significant financial commitments.
- Entering into contractual obligations.
- Taking material actions affecting employees.
- Communicating legally significant positions.
- Making decisions with substantial consequences for customers.
- Authorizing access to sensitive systems or information.
The appropriate control depends on the potential impact of an error, the reliability of the process and the ability to reverse an action.
Make oversight risk-proportionate
The company should avoid applying the same review requirements to every AI activity.
For example, an AI system drafting an internal meeting summary may require relatively limited oversight. An AI agent authorized to modify financial records or issue customer refunds should operate under much more restrictive controls.
Human oversight should be concentrated where it can prevent material errors, improve judgment or ensure accountability.
Step 5: Establish clear responsibilities and operating boundaries
AI-enabled workflows can create confusion if responsibility is not clearly assigned.
For each important workflow, the company should establish:
- Who owns the business process.
- Who authorizes the use of AI.
- Who configures and maintains the system.
- What information the system can access.
- What activities it is permitted to perform.
- Which outputs require human review.
- Who is responsible for approving significant actions.
- Who monitors performance and handles incidents.
For AI agents, particular attention should be given to permissions.
An agent should have access only to the information and systems necessary for its authorized activities. Its ability to take action should be limited by clearly defined rules.
Companies should also establish procedures for suspending an agent, revoking access or intervening when unexpected behavior occurs.
The fact that an AI system performs an activity does not remove the need for an identifiable human or organizational owner.
Step 6: Measure the performance of AI-enabled workflows
Companies should measure the performance of the complete workflow rather than focusing exclusively on the performance of the AI tool.
Useful indicators may include:
| Measurement area | Potential indicators |
|---|---|
| Speed | Time required to complete the workflow |
| Productivity | Tasks completed per employee or unit of time |
| Quality | Accuracy, completeness and consistency of outputs |
| Cost | Total cost per completed task |
| Reliability | Frequency of errors, failures or rework |
| Oversight | Time spent reviewing and correcting AI outputs |
| Risk | Incidents, unauthorized actions and control failures |
| Business contribution | Impact on revenue, customer experience or strategic objectives |
It is particularly important to measure the time required for human review.
For example, an AI system may reduce the time needed to prepare a report from four hours to two minutes. But if an employee then needs three hours to verify and correct the output, the actual productivity improvement may be much smaller than expected.
Conversely, if AI can produce a reliable first draft that requires only ten minutes of review, the improvement may be substantial.
The company should also examine whether AI changes the nature of employees’ work. Time previously spent on routine tasks may be redirected toward customer relationships, problem-solving, innovation and higher-value activities.
Step 7: Develop new management practices for human–AI collaboration
The introduction of AI requires more than changes to individual workflows. It may also require changes to the way managers organize and supervise teams.
Managers should increasingly consider how work can be allocated between employees and AI systems.
For example:
- Which tasks should remain primarily human?
- Which tasks can be delegated to AI?
- Which activities benefit from collaboration between people and AI?
- Where should human judgment be concentrated?
- What new skills do employees need?
- How should managers assess performance when outputs are produced jointly by people and AI?
This may require changes to job descriptions, performance evaluation, training and organizational structures.
Managers will also need to develop new skills themselves.
These include understanding AI capabilities and limitations, designing effective workflows, establishing appropriate controls, interpreting AI-generated information and managing employees who work with increasingly capable AI systems.
The manager’s role may shift from supervising the execution of individual tasks toward designing and improving the systems through which work gets done.
Step 8: Establish a continuous improvement process
AI capabilities evolve rapidly, and workflows that are efficient today may be capable of further improvement tomorrow.
Companies should therefore treat AI workflow management as an ongoing discipline.
A practical approach could include:
Regular workflow reviews: Examine whether existing processes are taking advantage of new AI capabilities and whether unnecessary delays remain.
Performance monitoring: Review productivity, quality, reliability and risk indicators.
Employee feedback: Ask employees where AI is helping, where it is creating additional work and what improvements could be made.
Technology reviews: Assess whether new models, tools or agent capabilities could improve existing workflows.
Incident analysis: Examine errors, failures and unexpected outcomes to determine whether changes to instructions, permissions or controls are necessary.
Policy updates: Ensure that changes to workflows remain consistent with the company’s AI Use Policy and broader risk management framework.
The company should also document important workflow changes and retain sufficient information to understand how material processes operate.
The objective is to create a cycle in which the organization continuously improves its ability to combine human capabilities with AI.
📌 Key Takeaways
- Effective AI adoption requires effective management. Providing access to AI tools does not automatically create business value.
- Traditional management practices were designed around human working speeds and need to be reconsidered for AI-enabled work.
- The appropriate unit of management is increasingly the complete workflow involving employees, AI models, applications and agents.
- Management should take advantage of AI’s speed rather than impose unnecessarily slow human-oriented processes.
- AI autonomy should be determined according to the nature and risk of the activity.
- Human oversight remains essential, but it should be designed intelligently and proportionately rather than applied indiscriminately.
- Clear responsibilities, permissions and accountability are necessary, particularly for AI agents.
- Workflow performance should be measured in terms of speed, quality, cost, reliability, risk and contribution to business objectives.
- Managers will increasingly need to design and improve human–AI operating systems, not simply supervise individual tasks.
- AI workflow management should be treated as a continuous improvement discipline.
🌿 Reflection
Much of modern management has evolved around the practical limitations of human work.
We organize teams, allocate responsibilities, establish reporting structures, schedule meetings and create approval procedures to coordinate activities performed by people.
AI changes many of the assumptions underlying these arrangements.
A task that once required an employee several hours to complete may now take seconds. An AI agent may perform activities continuously rather than according to a human working schedule. Information can be processed and communicated almost immediately.
Yet companies may continue to apply management structures designed for a much slower operating environment.
This creates a paradox: an organization may adopt increasingly powerful AI tools while retaining the management practices that prevent it from realizing their full potential.
The solution is not to remove management or human judgment. It is to rethink how they should be applied.
Some activities will benefit from greater autonomy and faster execution. Others will require careful human review and authorization. The challenge is to determine the right balance for each workflow.
Ultimately, AI is changing not only the tools people use, but also the way organizations should be designed and managed.
This raises an important question:
Is your company managing AI-enabled work according to the capabilities and speed of AI, or are you simply inserting new technology into management structures designed for a different operating environment?
The companies that rethink their management practices may be able to capture substantially more value from AI than those that focus exclusively on acquiring the latest tools.
⚔️ Dojo Mission
Select one important workflow in your company where AI is currently being used or could be introduced.
Map the existing process and answer the following questions:
- Which activities are performed by employees, and which are performed by AI?
- How much time does each activity take?
- Where do approvals, reviews or handoffs create delays?
- Which activities could be completed more quickly or in parallel?
- Which outputs require automated checks, human review or explicit human authorization?
- Who is responsible for the quality and outcome of the complete workflow?
- How could the workflow be redesigned to improve speed, quality and reliability?
Then compare the existing workflow with a proposed AI-enabled version.
Identify one management procedure that could be simplified or accelerated without weakening necessary controls.
Your objective is not simply to introduce AI into an existing process. It is to rethink how the work should be managed when AI becomes part of the operating system.
Leave a Reply