Lesson 3 of 6

What AI is good at, and what it isn't

Where today's AI tools genuinely save time, where they struggle, and a simple test for deciding whether a task is a good fit.

3 min readBy Michael Alos

Once you know AI writes by predicting text, its strengths and weaknesses start to make sense. Here's the practical version.

Where AI is strong

  • First drafts. Emails, quotes, job descriptions, social posts, proposals. A decent draft in seconds that you then improve.
  • Summarizing. Long email threads, meeting transcripts, reports and documents boiled down to what matters.
  • Rewriting. The same message made shorter, friendlier, more formal, or clearer for a customer.
  • Pulling details out of messy text. Names, dates, amounts and requests taken from emails or PDFs and put into a tidy list or table.
  • Sorting and labeling. "Which of these inquiries are urgent?" or "Tag each review as positive, negative or mixed."
  • Brainstorming. Ten subject lines, five ways to explain a price increase, a list of questions to ask a supplier.
  • Explaining. Breaking down a contract clause, a technical term, or an unfamiliar regulation in plain words. (Still check anything important.)

Where AI struggles

  • Facts without a source. It can invent names, numbers, quotes and links. The next lesson covers this.
  • Your business specifics. It doesn't know your prices, policies or customers unless you give it that information.
  • Long, exact calculations. It's getting better, but a spreadsheet is still the right tool for the numbers that matter.
  • Up-to-the-minute information. Unless the tool searches the web, it only knows what was in its training data.
  • Judgment calls. Hiring, firing, pricing, legal positions and anything with real consequences needs a person to decide.
  • Staying consistent across a long job. Without clear instructions, quality can drift from one answer to the next.

A simple test for any task

Ask yourself one question:

Would I hand this to a smart new hire with a short checklist, and then review what they produce?

If yes, it's probably a good AI task. The draft saves time, and checking it is quicker than doing it from scratch.

If the task needs years of experience, inside knowledge you haven't written down, or a decision you'd never delegate, AI can still help you think, but the work stays with you.

The pattern that works best

The most reliable way small businesses use AI looks like this: AI does the first 80%, a person does the last 20%. AI drafts, sorts or summarizes. A person checks, adjusts and approves. That's where most of the time savings come from, and it keeps quality in your hands.

Try this (5 minutes)

Find a long email thread from the last month, one with a few back-and-forths.

  1. Paste it into your AI assistant. Remove anything sensitive first.
  2. Ask: "Summarize this thread in five bullets: what was decided, what's still open, and who's waiting on whom."
  3. Compare the summary to your own memory of the thread. Was anything missed or invented?

Common mistakes

  • Giving AI a vague request, getting a vague answer, and deciding AI doesn't work.
  • Using AI for final answers in high-stakes areas with no review.
  • Doing important math in the chat window instead of a spreadsheet.

Check yourself

Name three kinds of work AI is usually strong at.

Any three of: first drafts, summarizing, rewriting, pulling details out of messy text, sorting and labeling, brainstorming, and explaining.

What's the "new hire" test?

If you'd hand the task to a smart new hire with a checklist and then review their work, it's probably a good task for AI.

What does "AI does the first 80%" mean in practice?

AI drafts, sorts or summarizes, and a person checks and finishes the work before it's used.

Where could AI give your business the most back?

Answer thirteen questions and get your biggest opportunities ranked, with a rough figure for each. Free, about four minutes, no email required.

Take the AI Opportunity Check →