AI for COOs: The New Era of Operational Excellence

For Chief Operating Officers, artificial intelligence is no longer just a buzzword. It’s becoming the ultimate lever for driving operational excellence, efficiency, and resilience in a rapidly changing business environment.

Imagine operations where:

• AI agents optimize supply chains in real time, identifying and resolving bottlenecks before they escalate

• Processes run 24/7, with humans stepping in only for strategic decisions and exceptions

• Teams focus on value creation, not routine firefighting or repetitive administrative work

This vision is not theoretical. It’s increasingly achievable today. The challenge for COOs is to know where to start, how to measure value, and how to scale effectively.

Here is my advice:

1. Identify Operational Friction Points

The first step is to examine your organization’s operational landscape with a critical eye. Ask:

• Where do delays, errors, or inefficiencies consistently occur?

• Which workflows are repetitive, rules-based, or data-heavy?

• Where are teams spending time on tasks that don’t require human judgment?

These friction points are prime candidates for targeted AI deployment.

Examples include:

• Demand forecasting plagued by inconsistent data across regions

• Manual scheduling of logistics or maintenance

• Repetitive compliance checks or data validation steps

A clear map of operational pain points ensures that AI investments are focused on real business challenges, not just technological experimentation.

2. Start Small with Targeted AI Agents

AI transformation doesn’t require a sweeping, organization-wide overhaul from day one. In fact, starting small is often the smartest approach. Identify one or two high-impact use cases where AI agents can deliver tangible value quickly.

Practical examples:

• A procurement agent that monitors supplier performance, detects anomalies, and suggests actions in real time.

• A customer service triage agent that routes simple queries to automated workflows while escalating complex cases to human teams.

• A logistics optimization agent that dynamically re-routes shipments to minimize delays and costs.

These targeted deployments provide fast wins, build organizational confidence, and lay the groundwork for larger initiatives.

3. Measure Real Business Impact

For operational leaders, measurement is key. AI initiatives should be judged by their ability to deliver measurable improvements to the business, not just by the sophistication of the technology.

Establish clear metrics before implementation. Examples include:

• Time saved through automation of manual processes

• Error rates reduced in critical workflows

• Capacity freed up for strategic initiatives

• Cost reductions achieved through better forecasting, fewer delays, or reduced rework

These metrics provide the data needed to evaluate success objectively and build a strong business case for scaling.

4. Scale Where Human + AI Collaboration Creates Value

The most effective operational models don’t replace people, they augment them. Once early wins are demonstrated, the next step is to scale AI into areas where human expertise and AI capabilities complement each other.

Examples:

• Supply chain control towers powered by AI provide real-time insights, while human teams handle trade-offs and strategic decisions.

• Finance and operations teams use AI to run scenarios, then apply human judgment to prioritize investments.

• Maintenance teams leverage predictive alerts generated by AI to focus human effort on complex problem-solving.

Scaling thoughtfully means embedding AI into core operational processes and making it part of the organization’s operating DNA.

The COO of the Future

The role of the COO is evolving rapidly. Tomorrow’s operational leaders won’t simply manage processes, they’ll orchestrate complex systems where machines and humans work together at scale.

They will act as:

• Strategists, identifying where AI creates leverage

• Conductors, harmonizing human expertise with intelligent agents

• Change leaders, embedding AI into the organization’s culture and workflows

The playbook is straightforward:

1. Start small with targeted AI agents

2. Measure impact rigorously

3. Scale where collaboration creates the most value

By taking this structured approach, COOs can unlock a new era of operational excellence, one where human ingenuity and machine intelligence work hand in hand.