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by cyrusradfar 200 days ago
I agree with the article’s core point that placement matters.

The useful framing is not “where can we bolt on AI” but “what does the system look like if AI is a first-class component.” That requires mapping the workflow, identifying the decision points, and separating deterministic steps from judgment calls.

Most teams try to apply AI inside existing org boundaries.

That assumes the current structure is optimal. The better approach is to model the business as a set of subsystems, pick the one with the highest operational cost or latency, and simulate what happens if that subsystem becomes an order of magnitude more efficient. The rest of the architecture tends to reconfigure from that starting point.

For example, in insurance (just an illustration, not a claim about any specific firm), underwriting, sales, and support dominate cost. If underwriting throughput improves by an order of magnitude, the downstream constraints shift: pricing cycles compress, risk models refresh faster, and the human-in-the-loop boundary moves. That’s the level where AI changes the system shape and acts beyond the local workflow.

This lens seems more productive than incremental insertion into existing silos.