The Rise of AI-Powered Entrepreneur Teams

By Nicolas Martin, Senior Full Stack Data Scientist, Fractal-Apps CEO & Founder, 08/10/2024.

For several years now, we've started seeing new teams whose members are not from the same company.

These are not underground organizations, nor a new structure invented by a government, but rather a reality present in all countries.

These new teams are much more effective than traditional teams, and for good reason: each member is fully invested and responsible for their activities.

How is this possible? It's actually simple: these are teams made up of solopreneurs who each have a complete and accurate knowledge of their business, increasingly powered by Artificial Intelligence.

Which raises the important question of whether this is a temporary event that will disappear in a few years, or a new paradigm that will gradually replace many companies?


The Problem with Traditional Companies

Most companies criticize their employees for a lack of engagement that negatively impacts their results. This lack of investment consistently stems from:

1. Poor management.

2. Removal of responsibility.

3. Unrealistic vision.

These factors prevent employees from maximizing their potential.

A 2023 McKinsey report found that companies with highly engaged employees are 21% more profitable than those with low engagement. 

Of course, this is not the case for all companies; not all entrepreneurs are talented. Many companies will continue flourishing, and many entrepreneurs will lose their business, with or without AI.


The Entrepreneur Advantage

However, these problems don't exist for successful entrepreneurs:

- No poor management: Their bosses are directly the clients or users of their project. There's no harsher boss than the market itself: Either you understand their needs and do everything to meet them correctly, or you don't, and the market completely ignores you. Experienced entrepreneurs understand this reality.

- Full responsibility: Entrepreneurs must achieve results and generate income. While it may seem harsh, a business without money is destined to disappear. (This doesn't apply to NGOs or non-profit organizations, which have different objectives.)

- Realistic vision: Entrepreneurs must thoroughly understand their clients or users, competitors, rules, and laws to succeed. This requires absolute pragmatism where even political opinions are set aside (though understood for better market service).

The AI Catalyst

This is where AI enters forcefully, as each entrepreneur can now boost formerly tedious tasks:

Those are just a few examples, and there are many more possible tasks if you search them in a tool aggregator like Theres An AI For That.

Most people already use AI in their daily tasks, but it is even more applicable to entrepreneurs for whom activity efficiency is a main concern.

In addition, the learning curve is shorter thanks to ChatBots. They provide a dynamic way to learn any subject with a clear learning path, which makes entrepreneurs even more skilled in many fields.

One color = One mastered skill. In the years 2000s, the traditional teams had a main skill per person. In the near future, AI will benefit entrepreneurs to master different skills and produce much more with a better quality. Image by author. 

The Power of Entrepreneur Networks

Entrepreneurs have found in AI a new force, amplified by interactions with other entrepreneurs. With nearly 18,000 AI services available to facilitate many processes at lower costs, entrepreneurs and freelancers test different services and gain expertise they can exchange with others.

The diversity and richness of AI services mean each entrepreneur learns different tools, making knowledge sharing mutually beneficial. When entrepreneurs have different specialties, these exchanges become even more valuable as they complement each other, increasing the success rate of team projects.

Each person commits 100% to their domain, understands the needs of other entrepreneurs and clients, and can even take risks for the project's benefit without prior approval from others.

In this video, the successful entrepreneur and Youtuber Dan Koe call it being “high agency”:

The Downside

Is there a flaw in this new type of organization? Yes, a significant one: the risk of precarity. Not all entrepreneurs can succeed, even if they're talented. Many find themselves overwhelmed, in debt, and facing personal or health problems. It's far from a comfortable situation.

However, for those who succeed, the combination of exponential wealth creation potential and the development of AI-enhanced entrepreneurial team capabilities creates a level of freedom and opportunity that is rarely achievable through traditional employment.

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Links

5 Ways Solopreneurs Can Scale Their Business Through Collaboration | Entrepreneur  

What Is a Solopreneur? Solopreneur vs. Entrepreneur (2023) - Shopify 

Why Every Solopreneur Needs to Embrace AI-Powered Teams | Entrepreneur 

4 Reasons Why Managers Fail (hbr.org) 

How Companies Can Improve Employee Engagement Right Now (hbr.org) 

11 Employee Engagement Statistics You Should Know For 2024 | Wellable 

The impact of engaging leadership on employee engagement and team effectiveness: A longitudinal, multi-level study on the mediating role of personal- and team resources | PLOS ONE  

Discover How Chatbots in Education Transform Learning Experiences

What Makes Entrepreneurs Burn Out (hbr.org) 

The 4 Biggest Problems Causing Entrepreneurs Unnecessary Stress | Entrepreneur 

Entrepreneurs are facing a mental health crisis — here’s how to help them (theconversation.com)