Can Companies Automate Their Way Out of Decline? Industry Insiders Share Their Perspectives

Salvaging a company on the decline is a task riddled with complexity and never-ending challenges. It can feel like you’re putting out one small flame after the next, while a raging inferno continues to rage towards you, no matter what you do.

Indeed, once it all starts going downhill, it can be tough to stop the ball from rolling, so it’s no surprise that plenty of company founders and executives choose a Hail Mary in the hope that, just maybe, things will turn around.

This Hail Mary, last-ditch effort, approach is nothing new to the world of business. It’s only human nature to do as much as possible to prevent your business from going under, especially if it’s a personal endeavour, as business is for founders.

The difference these days, however, is the form that the do-or-die approach takes. Since technology has pretty much revolutionised everything else around us – from everyday consumer technology to high-end, advanced tech – it’s no surprise that people are starting to try to use modern technology to swoop in and save the day.

When employed for the purpose of operational changes, we’re calling it a tech “refresh” or, perhaps, a “revamp”. These terms imply a pretty moderate change – it may involve new systems, machinery, software and procedures, but it’s more about updating existing frameworks.

However, what we’ve started to see more of now is the concept of the “tech overhaul”, and it’s not just a linguistic difference. Rather, it seems as though companies that are struggling and have already started their downward spiral are attempting to use it as a strategy for redemption. Indeed, there’s a belief that by simply replacing everything with modern, advanced technology, that being older, existing tech as well as employees, companies may be able to claw themselves out of the holes they’re finding themselves in.

But, is this plausible? Is it realistic to expect that we may actually be able to use modern tech to swoop in and fix all that is broken? Well, wouldn’t that be a lovely, Disney-like ending to an otherwise troubling story?

Unfortunately, the reality is quite different from what we’d like to believe.

There’s no doubt that modern tech has changed our lives in ways that were previously inconceivable. It’s doing things we never thought possible, replacing humans in positions we may not have dared to imagine just a few years ago. More than that, it’s actually better than people in many things we use it to do.

However, it still has its limitations, and as much as we wish we could simply use modern tech to solve our problems, that’s just not a realistic – or smart – solution. Sometimes, using tech and automated systems where they shouldn’t be used can cause more problems than if a little more thought went into the issue at hand. Indeed, as Ben Johnson, CEO of BML Digital so eloquently puts it:  “The winners won’t be those who automate the most, but those who know what not to automate and can explain why with a straight face.”

 

“AI Is An Accelerator, It Is Not a Steering Wheel”

 

The truth is, AI and advanced tech can work wonders, but only when the foundations are already solid. They excel at speeding up processes, improving accuracy and optimising systems that are already functioning as intended. Essentially, they’re fantastic accelerators, but, “AI is an accelerator, it is not a steering wheel”, says Leanne Byrne –  they’re not capable of directing a floundering company out of trouble when all other hope is lost.

Of course, the allure of AI in a struggling business is understandable. After all, who wouldn’t want a solution that promises efficiency, insights and automation all at once? Unfortunately, the reality is far more sobering. If the underlying system is broken, no amount of automation or algorithmic wizardry will fix it. AI can replicate inefficiency faster, scale mistakes, and even obscure fundamental flaws if applied blindly.

As industry insiders repeatedly stress, the first step is understanding where your system is failing and why. Only then can technology be applied thoughtfully to amplify improvements rather than mask problems. AI is a powerful tool, but it simply cannot replace the strategic thinking, creativity and careful decision-making required to turn a struggling company around, and that’s the harsh reality.

 

Our Experts

 

• Ben Johnson: CEO of BML Digital
• Leanne Byrne: Co-Founder and Director of Maven Marketing
• Laura Moss: Managing Partner at Parisi Consulting
• Steve Kelly: VP of Method and Content at Orgvue
• Michelle Johnson: MIT-certified AI Expert, MBA (Distinction) and PMP Project Leader
• David Tyler: Founder of Outlier Technology
• Caroline Cartellieri: Founder of C-Squared Consulting
• Andy Holland: SEO Director at JBH, The Digital PR and SEO Agency
• Peter Wood: CTO at Spectrum Search
• Seb Brantigan: AI and Automation Expert, Co-Founder and COO of DBSS Digital
• Patrizia Bertini: Managing Partner at Aligned Consulting Group Ltd.
• Debra Andrews: Founder and President at Marketri
• Moti Gamburd: CEO at CARE Homecare
• Chris Sorensen: CEO of ARMOR Dial and PhoneBurner
• Kateryna Reshetilo: Head of Marketing at Greenice
• Joe Lambert: Founder at Rareloop
• Steve Morris: Founder and CEO of NEWMEDIA.COM
• Marina Davidova: Co-Founder and Managing Partner At DVC

 

Ben Johnson, CEO of BML Digital 

 

 

“When organisations rush to automate bureaucracy without asking, “why does this process even exist?”, they don’t create efficiency, they create a monster. A shiny, humming machine that knows exactly what to do… but nobody remembers why we’re doing it. That’s how you end up with institutional amnesia and organisations that look impressive on the outside but are hollow at the core.

“The Turing Institute found 143 million complex repetitive transactions a year, with 84% ripe for automation. Brilliant! Except if the process is pointless to begin with, all you’ve done is build a faster hamster wheel.

“The risk is “algorithmic bureaucracy”: the original flaws remain, but now they’re executed with ruthless precision and with zero human discretion to smooth out the rough edges. The business is more efficient at doing things that may never have made sense in the first place.

“And it is not just an operational issue. Customers like efficiency, but they love empathy. In fact, 74% say they’re more loyal to companies with actual human help. Automation can’t smile down the phone, bend the rules when it makes sense, or sound genuinely sorry when things go wrong. Strip out the humans, and customers won’t see a slicker business; they’ll see a soulless one.

“The answer isn’t “ban the bots.” It’s to use them with purpose. Kill the pointless processes before you automate them. Capture the wisdom of the humans who know why things are done before they walk out the door. And for heaven’s sake, keep some human touchpoints; for your staff and your customers. The winners won’t be those who automate the most, but those who know what not to automate and can explain why with a straight face.”

 

Leanne Byrne, Co-Founder and Director, Maven Marketing

 

 

“Short answer. No. You cannot automate your way out of decline. You can only automate your way out of waste.

“AI is brilliant at scaling what already works. It sharpens targeting, speeds insight, and cuts the grunt work so leaders can focus on strategy and customers. But when the core issues are weak value proposition, poor pricing, tired creative, or a broken sales process, more tech simply makes the wrong things happen faster.

“The riskiest move I see is trimming senior operators and hoping AI fills the gap. You lose judgement, context, and commercial memory. The playbook that works is simpler. Reaffirm the customer problem. Fix the offer and the funnel. Measure inputs and outcomes weekly. Then bring in automation to remove friction, not people. Keep your best minds and let AI extend them.

“AI is an accelerator, it is not a steering wheel.”

 

Laura Moss, Managing Partner, Parisi Consulting 

 

 

“Many companies across our industry are looking at how AI can enhance business, but automation alone can’t replace human judgment, insight, or creativity. Clients still value people – experts who interpret data, provide context, and make nuanced decisions. AI works best when it used to complement human expertise; not replace it: freeing people from repetitive tasks while enabling them to focus on complex problem-solving, strategic thinking and relationship building.

“Success comes from balancing technology with the human expertise that drives real understanding and results. Removing senior employees also has other risks beyond client service, namely, losing mentorship, leaving junior staff without guidance to learn and grow.”

 

Steve Kelly, VP of Method and Content at Orgvue

 

“AI is so often focused on as a driver for mass redundancies in efforts to quickly save on costs, and whilst there is no doubt that AI is transforming work, it’s not the main reason UK job numbers are falling. Our analysis of FTSE 100 companies’ annual reports reveals people, not algorithms, are still driving sustainable revenue growth. Nearly 40% of companies added staff while growing revenue in 2024 and achieved double the revenue compared to those that cut staff in favour of AI. In fact, only 4% of companies sustained efficiency gains through workforce reductions over two consecutive years.

“That’s not to deny that technology will revolutionise the workforce. However, the focus should be on readiness, not fear. Smart leaders are anticipating how work will change, redesigning jobs, reskilling teams, and using AI to amplify human performance rather than replace it. Those who see AI as a means to automate out of decline will find themselves short of the skills they need to compete, falling short further down the line.”

 

Michelle Johnson, MIT-Certified AI Expert, MBA and PMP Project Leader

 

 

“A major technology change can be part of a turnaround if the company is fundamentally sound. A solid systems upgrade may help reduce duplication, improve efficiency, and give a business the stability it needs. That is very different from a last-ditch bet on generative AI. So far, the returns from GenAI have been limited, and the projects are expensive and disruptive.

“If the business is already in decline, it may not have the time or money to see them through. Technology overhauls also carry their own risks: procurement failures, weak project management, and disruption to daily operations. When the underlying strategy is strong, a technology change can be useful. When it is treated as a “golden ticket” at the eleventh hour, it is far more likely to speed up the decline than to stop it.”

 

David Tyler, Founder of Outlier Technology

 

 

“Throwing an inordinate amount of money at the latest AI technology before identifying the problems you’re trying to fix within your business is like buying a hammer and then looking for nails to hit with it. Organisations need to truly understand what issues there are within their processes and systems, where their people are having to undertake manual workarounds, and what would make them more efficient and profitable. It’s only once they’ve got to the root causes of their problems that they can identify the right solution. That solution may well be AI, but it’s more likely to be a case of streamlining current processes and enhancing existing technologies instead to untangle the knots in systems.

“Working out the problem then solving it gives a much higher chance of project success – and reduces the vast amounts of time, money and effort currently being wasted. Let’s stop being blinded by the hype machine’s promises and shift our expectations: yes, some companies will find an AI model which they can utilise to great effect, but it’s not a ‘catch all’ solution which is going to fix every company’s problems.”

 

Caroline Cartellieri, Founder of C-Squared Consulting

 

 

“Companies can’t automate their way out of decline – in fact, automation often accelerates it. If your business model is broken, AI will only help you fail faster. In hospitality, I’ve seen operators roll out AI guest services without addressing core issues like pricing strategy or staff engagement. The result is a slicker façade on the same structural weaknesses.

“The myth is that automation equals cost savings. Leaders cut headcount and expect AI to fill the gap. But in reality, removing human interaction erodes guest trust and loyalty, which are far harder to rebuild. Guests may be happy to have an AI concierge confirm a late check-out, but they still want a real person to solve problems with empathy.

“The real power of AI is in amplification: letting technology handle forecasting, logistics, and repetitive tasks so people can focus on creativity, decision-making, and service. Companies that use AI to strengthen, not substitute, their workforce will emerge stronger. For those already in decline, betting everything on automation is a false economy. For those with a solid foundation, it’s a multiplier that drives both efficiency and distinctive experiences.”

 

Andy Holland, SEO Director at JBH, The Digital PR and SEO Agency 

 

 

“Companies shouldn’t be thinking about automating their way out of decline.

“What they should be doing is looking at technology as a way to increase the effectiveness of what they do, whether it be their products and services, how they are delivered or, how an organisation can create more value in the market using technology.

“It’s a mistake to think you can just get rid of high‑level employees to save money and expect it will save the company.

“You should examine technology to see how you can enhance your organisation’s effectiveness. Ask yourself how you can use technology to make your products and services better. That means making sure your staff are technology empowered.

“Employees play their part too, they need to increase their AI and technological literacy as quickly as possible. We live in a fast-paced world, and employees need to adapt to it.

“Everyone should consider how AI can support their roles and enhance their work. It’s not just about the company, we need to embrace technology to move forward.

“That said, you can’t automate your way out of a mess; it is all about creating effectiveness through technology.”

 

Peter Wood, CTO at Spectrum Search

 

 

“Automation and AI can be powerful lifelines for companies facing decline, but they are not silver bullets. The danger lies in treating technology as a wholesale replacement for people rather than as an amplifier of human expertise. When firms cut skilled employees under the belief that algorithms alone can rescue them, they often lose the tacit knowledge, creativity, and adaptability that machines cannot replicate.

“I’ve seen that the most successful organisations use AI to uncover insights, streamline operations, and support strategic decisions, while ensuring people remain central to innovation and culture. A less discussed risk is that over-automation can introduce hidden fragility: if a system is optimised to perfection, it may lack the resilience to adapt to unexpected shocks. True transformation comes from blending technological precision with human judgement, not trading one for the other.”

 

Seb Brantigan, AI and Automation Expert, Co-Founder and COO of DBSS Digital 

 

 

“AI can be extremely powerful, however it should be treated as a tool to implement, rather than a complete ‘out of the box’ solution.

“Relying too much on AI can leave an organisation vulnerable, especially if there are issues with structure or strategy. AI can be great to brainstorm on overall solutions, however human experience and expertise should be relied on also. Otherwise responses to a decline can be non-specific and leave huge gaps.

“On the more positive side, AI can definitely help to re-invent business practices, processes and systems that may be keeping a company from progressing and causing it to fall behind.

“The combination of advanced AI technology and human knowledge can create a powerful strategy that covers all bases, encompassing the human touch and up-to-date data to drive business decisions. “

 

James Barnes, CEO and Founder of StatusCake

 

 

“So many companies are under pressure right now, and AI and automation is without a doubt being seen by many as a silver bullet to speed up execution; much of the time cutting experienced people out of the process.

“The issue though is that AI without robust human oversight, is more likely than not, to create more, not less, fragility.

“There’s an observable difference now between the reliability of websites that main strong policies, checks, and human oversight, versus those that have started to over-rely on AI for code writing and pushing that code live.”

 

Patrizia Bertini, Managing Partner at Aligned Consulting Group Ltd.

 

 

“Companies can’t automate their way out of decline by treating AI as a silver bullet. At its best, AI produces outputs, but outputs aren’t outcomes. Outcomes require intent, context, and accountability, things machines cannot provide. The danger comes when leadership assumes people are interchangeable with algorithms. In reality, AI systems demand more human oversight, not less.

“Without humans in the loop, organisations risk building black boxes that churn out decisions no one can fully explain or defend. That not only harms customers but also erodes trust, creates compliance risks under frameworks like the EU AI Act, and undermines long-term resilience. Replacing experienced staff with tech may save short-term costs, but it leaves companies with outputs that lack ownership or clarity.

“The path forward isn’t about swapping humans for machines, but designing partnerships where AI augments human judgment, and humans remain accountable for outcomes. If companies confuse speed and efficiency with progress, they risk compounding decline. Sustainable recovery depends on marrying AI’s scale with human responsibility, systems thinking, and transparency; otherwise, we risk optimising ourselves into irrelevance.”

 

Debra Andrews, Founder and President at Marketri

 

 

“Tech and AI are powerful tools, but they are not a fix-all. When companies are in decline, it can be tempting to believe AI replacement will solve everything even at the cost of strong employees. But long-term health doesn’t mean going only in one direction. A better solution is a balance of human judgment with automation.

“AI should augment, not replace, the insight and creativity that come from people who have a deep understanding of the business, customers, and industry. If you jump in without the knowledge of properly implementing AI, it may do more harm than good.”

 

Francesco Bogliacino, Universita Cattolica Del Sacro Cuore

 

 

“If the company operates in a sector with high uncertainty, the most reasonable response is to pivot. If the company in decline operates in a mature industry, aggressive cost-cutting and automation constitute a necessary short-term maneuver to recover its margins and send a signal to markets and banks to gain access to further credit for investment. If the source of the problem is really “a decline”, automation and process innovation will not be enough. Unless the company creates additional value (typically via product innovation), aggressive cost-cutting will only postpone the inevitable.

“As can be seen, technological change (in the broader sense) is always part of the necessary strategy to survive and succeed. AI is on the hype right now, and it makes sense for companies to adopt it. However, there is no guarantee that by simply adopting AI, a company will avoid the decline.”

 

Moti Gamburd, CEO at CARE Homecare

 

 

“From my vantage, when you’re in service/giving care, as a care industry on its own and service by definition, you will not A.I. your way out of decline. Care is based on trust and human judgment. Technology and A.I. will help make it easier, but automating out of good experienced staff will likely only create bigger problems than you or I may realize.

“We tested this on ourselves during a rough value quarter. What we did was automate the intake and scheduling of visits, but we cut two senior care coordinators at the same time. It seemed efficient on paper, but within weeks, missed visits increased by 18%, complaints from family members increased. After a couple of months, we bucked the trend, brought back the care coordinators, then used A.I. to prep files and flag conflicts on our own. The coordinators and schedulers made the final decision in the process, and we went back to 96% of on-time starts on shifts and reduced overtime by 12%, and we could thank the A.I. with better filing and prepping.

“The real added value comes with a blend of doing some level of automation and having skilled people in the process. In home care, where you do A.I. has relief staff manage reminders and forms, but only a trained staff person can substantiate and add nuances when a family is in crisis, or a last-minute adjustment has to be made. Tech shouldn’t take away all of the work for the caregivers, family coordinators and agencies to build relationships and safety back into care planning and services.”

 

Chris Sorensen, CEO of ARMOR Dial and PhoneBurner

 

 

“To me companies in decline treat AI like automation as if it were a panic button – like tech is going to fix problems that are actually rooted more in strategy, culture, and leadership gaps. Even though technology can streamline operations and improve customer experience, its not going to be a substitute for critical thinking, human insight, or strong execution. Most companies know this and you would think that is an obvious statement but unfortunately it’s not.

“At ARMOR, AI is designed to protect call reputation and the data it provides us which allows our team to work through issues much quicker, but it is still the human experts who are still interpreting the results and working with carriers to solve problems.

“My broad statement would be that companies in decline need to ask hard questions about their value proposition and operations first. Technology should be part of the solution, but betting everything on automation while sidelining people usually accelerates decline rather than prevents it.”

 

Kateryna Reshetilo, Head of Marketing at Greenice

 

 

“AI can be a lever for struggling companies, but only if it’s used strategically. From our experience as a web development agency, we see two clear paths:

“1) Optimizing internal processes with AI automation.

We encourage our developers to use AI-assisted coding tools like Cursor and Windsurf. This isn’t about cutting corners — we emphasize responsible use to avoid costly mistakes and technical debt. With this approach, we’ve reduced development time and cost by 10–30%. Our own research on 542 AI agent projects confirms this trend: nearly a third of builds were focused on efficiency gains in back-office automation (15.2%) and customer support (14.8%). Full research: https://greenice.net/ai-agent-development-trends/

“2) Adding value for clients with AI-driven products and services.

We’ve expanded into AI engineering, building chatbots, AI agents, and recommendation systems. That’s where the market is heading: demand for traditional web development is shrinking, while demand for AI solutions is growing. For us, this isn’t just about growth — it’s about staying relevant and competitive in a rapidly changing industry.

“One caution: firing valuable employees to “save money” is shooting yourself in the foot. AI can outperform poor performers in roles like copywriting or lead generation, but it doesn’t compare to the best people in those same jobs. In fact, when we compared cost per lead, our star lead gen manager outperformed AI. The most successful companies will be those that combine their best people with AI, not replace them.”

 

Joe Lambert, Founder at Rareloop

 

 

“AI and automation can be transformative, but they’re not a last-ditch tool to save a declining business, they’re a way to unlock growth when used thoughtfully and strategically. In our experience, a focus on AI implementation usually uncovers process, data and people challenges that a company needs to resolve before they can get the full benefit of the automation.

“For that reason, companies should approach automation and AI carefully, especially if their first thought is to cut staff. It’s an opportunity to review their business practices and explore how they’d design their businesses differently if starting again with today’s technology. AI and automation works best in the hands of a skilled practitioner, when it empowers people, not replaces them. For one of our clients, we built a bespoke software system that freed up the equivalent of a full-time role, not so they could cut headcount, but so that employees could focus on higher-value tasks and new responsibilities. That’s where the real benefit lies.”

 

Steve Morris, Founder and CEO of NEWMEDIA.COM

 

 

“Don’t Automate a Broken Business Model

“Sorry, but automating a broken business model just makes it decline faster. Lots of brands and retailers seem to be going down the Bed Bath & Beyond route, where you make massive investments in OmniChannel technology and AI, but never stop to think how you change the way you get things to the customer. Instead of reimagining how you keep inventory in stock or even reimagining what inventory you offer, you automate couponing and old stock logic. I have yet to see a client, whether a legacy brand or a fast-growth eCommerce company, who is pursuing that strategy and have it turn out well. The latest is a manufacturer who want to replace all their senior planners with AI; six months later their overall KPIs are unchanged but error rates in order fulfillment have risen 27% because all the tribal knowledge walked out the door with the planners.

“Let the Business Model Drive Technology

“Winners are the people who begin by looking hard at the business they’re in. What’s the value they’re delivering? How’s customer demand shifting? Now you have a lever to automate or AI-enable. Every big turnaround I’ve seen or been involved in has at some point shot itself in the foot by committing senior management to some new technology (ERP, AI, automation) that was supposed to rewire the business without first defining the target operating model. PwC’s 2024 Digital IQ Survey research confirms this: 92% of companies who get it right start with business first, not technology. Stop firing all your senior people and turning thinking over to algorithms, and instead use senior people to redesign workflows and then use technology to scale what they do. Use technology to scale your ambition, not to hide its absence.”

 

Marina Davidova, Co-Founder and Managing Partner At DVC  

 

 

“Too many companies are trying to plaster AI over broken, legacy processes and expecting a miracle. In reality, automation amplifies what’s already there – if your workflows are messy or contradictory, AI will just scale that chaos faster, ultimately accelerating decline instead of solving it.

“What works far better is stepping back, cleaning up data, aligning incentives, and redesigning workflows to be coherent and scalable. The process needs to be re-examined from first principles: what outcomes truly matter, what constraints are critical, and how would you build this process today if AI were available from the start? The real wins come from creating brand-new, AI-first processes instead of retrofitting old ones.”