AI Operations: The High-Paying AI Job You Need (ft. Rachel Woods)

Rachel Woods, an expert in AI operations (AI Ops), shares her insights on how to effectively integrate AI into your business. She emphasizes the importance of a strategic approach and the critical roles needed for successful AI transformation.

Understanding AI Operations

What is AI Operations?

AI Operations involves applying AI to automate and improve business processes. It's about defining how you want your business to run and then using AI to operate it that way. Rachel Woods explains, "If I could define what I wanted done... then I could get AI to go run it, operate it."

The Importance of Operations

The hardest part of running a business is scaling and executing ideas efficiently. AI can be a powerful tool for streamlining operations and creating value once processes are well-defined.

Thinking Like an AI

Conceptualizing Language Models

To effectively work with AI, understand that language models convert words into numbers and learn patterns. This allows them to predict the next most likely word in a sequence.

Relating to AI as People

Thinking about AI as similar to managing people can help overcome common pitfalls. Consider the experience you have managing teams, hiring, and creating processes. These are skills that are also needed for a successful AI implementation. Just as with people, AI requires training, design, and strategy.

Specificity is Key

Just like when hiring, the more specific you are with your prompt, the better the results will be. You can increase your chance of success with AI by being really specific and detailed.

Key Differences Between AI and People

While AI can automate many tasks, people possess unique capabilities:

• Human Connection: The ability to connect, build trust, and relate to others.

• Creativity: The capacity for original thought and creation.

The Three Critical Roles in AI Transformation

Rachel Woods emphasizes that having one person be both the technical implementer and the AI operator is a common pitfall. She suggests creating three distinct roles:

1. AI Visionary: Sets the overall AI strategy and determines which projects to pursue. This role is typically held by an executive-level leader (CEO, COO, VP) who understands the business's goals.
2. AI Implementer: The technical expert who handles the implementation, coding, and automation aspects of AI. Their background is typically technical or analytical.
3. AI Operator: The process-oriented person who shepherds AI implementation, defines processes, and manages the execution of AI projects. They are often project managers or have a strong operational mindset. If you are a "ClickUp queen or king," this role is built for you.

Defining the AI Operator Role

Qualities of a Good AI Operator

• Process-oriented: Ability to break down complex tasks into manageable steps.

• Organized: Skilled at documenting processes and staying organized.

• Communicative: Able to interview subject matter experts and understand their workflows.

• Not necessarily technical: AI operations can be done with writing prompts.

The AI Operator's Responsibilities

• Shepherd the implementation of AI within a business.

• Define and document processes with the team.

• Run the execution of getting AI to start doing that work.

• Interview subject matter experts.

• Map out what the team is currently doing.

Structuring the AI Operator Role

Companies can structure the AI operator role in several ways:

• Dedicated Team: A centralized team of AI operators who support various departments.

• Transforming Existing Teams: Training existing operations or project management teams to incorporate AI operations responsibilities.

Importance of Compensation and Authority

AI operators should be well-compensated and have the authority to make an impact across the organization. Many AI operators have been promoted to director-level positions.

The Craft Cycle: A Five-Step Framework for AI Implementation

Rachel Woods introduces the CRAFT cycle, a repeatable framework for effectively integrating AI into business processes:

1. Clear Picture: Define the current process and the desired outcome. Understand the goal and how it should be done. It should not be assumed. Capture the current process.
2. Realistic Design: Break down the process into smaller, manageable components. Determine which steps are most suitable for AI automation.
3. AI: Build and implement the AI solution, using prompts or automation tools. At the minimum you can do this with writing prompts.
4. Feedback: Evaluate the AI's output and identify areas for improvement. Refine prompts and processes based on feedback. This is where you get the AI to be really great.
5. Team Rollout: Integrate the AI-powered process into the team's workflow. Provide training and support to ensure successful adoption. If this is a process in your task management tool already, team roll out could be simple as putting a little visual indicator.

Importance of Rapid Iteration

The goal is to complete CRAFT cycles quickly to unlock value and time efficiently.

Implementing the CRAFT Cycle

Developing a Clear Picture

• Record a Zoom call walking through the process, interviewing the subject matter expert.

• Transcribe the recording and use AI to create a checklist or standard operating procedure (SOP).

Creating a Realistic Design

• Avoid trying to automate the entire process at once.

• Focus on automating a few key steps to start.

Approaching AI-ification

• Start with writing prompts for each step.

• Use tools like Zapier to automate the process.

• Consider more advanced AI agents as you become more comfortable.

Gathering Feedback

• Evaluate the AI's output and identify areas for improvement.

• Refine prompts and processes based on feedback.

• Address substance issues by providing more context or simplifying instructions.

• Address style issues by refining examples or output criteria.

Executing Team Rollout

• Plan the integration of the AI-powered process into the team's workflow.

• Provide training and support.

• Monitor success metrics to ensure ROI.

• Consider a gradual rollout to give the team time to adapt.

The Concept of "Unlimited Time"

AI has the potential to create a new era where time is no longer a bottleneck. Rachel Woods challenges business leaders to think about what they would do with unlimited time and to use AI to unlock that potential.

Identifying Opportunities

• Look at the to-do list you never get to.

• Consider tasks you only do for high-paying clients and make them possible for every client.

• Look to the past for examples of excellence and replicate them.

By embracing AI and focusing on strategic implementation, businesses can unlock new levels of efficiency, innovation, and growth.