AI is not just another tool for efficiency. It is redefining how work gets done. The companies that win in this new era will be those that reimagine operations as AI-first, redesign processes end-to-end, and free people to focus on higher-value oversight and innovation.

In my recent Forbes article, I explore how AI is reshaping competitive advantage. This briefing note distills the message for COOs and operations leaders who need to guide their organizations through the shift from incremental efficiency to reimagined, AI-enabled operating models.

Here are the takeaways from "AI and Competitive Advantage in the Next Era" for COOs and operations leaders (read the full article here):

1. AI-first workflows redefine efficiency

In the past, growth and cost moved together. To serve more customers, companies needed more people, more machines, and more infrastructure. AI-first workflows break that link, making it possible to scale services without proportionate increases in expense.

2. Legacy systems are holding back competitiveness

Too many organizations still rely on outdated ERP and patched-together systems that don’t communicate with each other. These create bottlenecks, manual workarounds, and wasted effort. Modernization is no longer optional. It will be the foundation for competitiveness in an AI-first economy.

3. Small human teams, big agent factories

AI enables a handful of people to oversee what McKinsey calls “agent factories”: dozens of AI systems running end-to-end processes such as onboarding, claims, or compliance. Operations leaders must learn how to design these workflows, define where humans add value, and keep oversight at the right level.

4. Process fluency becomes a core capability

AI doesn’t fix broken processes: it amplifies them. Operations leaders must ensure that workflows are clear, efficient, and designed with the user in mind before layering AI on top. Process fluency will determine whether AI delivers clarity or chaos.

5. Real-time governance is the new standard

Oversight can no longer be episodic or paper-heavy. AI-first operations require real-time monitoring, with embedded checks and balances. COOs must balance automation with human accountability to manage risk without slowing the organization down.

Bottom line for COOs

The next competitive advantage in operations will belong to leaders who reimagine workflows from the ground up, modernize outdated systems, and build organizations where humans and AI work seamlessly together. The COO role is no longer about incremental efficiency. In this AI-first era of competitiveness, it is about designing the operating model of the future.