The Rise of Autonomous Businesses and Why Small Businesses Will Be the First Generative artificial intelligence (AI) is set to drive the rise of autonomous businesses, with small companies at the forefront. Dr. Imad Riachi discusses how this shift will transform the economy, redefine leadership, and merge human expertise with AI.

Advancements in generative AI are set to significantly enhance global productivity, potentially boosting global GDP by as much as 10%. However, the true transformation AI promises lies in its ability to move us closer to fully autonomous businesses. While much of the current focus is on AI's impact within large enterprises, Dr. Imad Riachi, an AI expert and founder of Honu AI, a Lonodn based company providing AI-powered solutions, explains that this is not where we will see the first breakthroughs. "Small and microbusinesses make up 90% of global economic development, and it is among this community we will see the first autonomous companies," he says.

Dr. Riachi believes that small businesses, with their agility and fewer legacy systems to navigate, are uniquely positioned to lead the transition toward autonomous business models. "If you look at AI's future transformation, you will see us edging closer to the creation of fully autonomous businesses," he explains. "While many focus on AI's role in large enterprises, this is not where the inflection point will come from."

Although the first fully autonomous businesses are still a few years away, the shift is already underway. "We're a couple of years away from seeing the first fully autonomous businesses," Riachi predicts. "When this starts to happen, the ecosystem will itself start looking different." As AI continues to evolve, these businesses will become the breeding grounds for innovation, powered by technologies that enable autonomy in decision-making and operations.

The rise of AI will prompt a shift from a "Knowledge-based Economy" to an "Expertise-based Economy," Dr. Riachi believes. "Access and retrieval of static recorded knowledge is already being democratized by LLMs (Large Language Models), especially through the RAG mechanisms," he states. In an "Expertise-based Economy," the focus will be on leveraging specialized knowledge, where individuals encapsulate or train AI agents with their implicit knowledge. These agents, in turn, will interact with and help grow other businesses.

This shift will redefine the role of the individual in the workforce. "The days of working for one company at a time will disappear," Riachi asserts. "It will most probably be a person using and leveraging the expertise they might have gathered across one or different companies, with the agent acting as a vessel operating in different kinds of autonomous businesses."

As AI becomes more integrated into business models, this will allow individuals to contribute not just in a narrow, company-specific role but in a broader, more dynamic way. The boundaries between jobs and industries will blur as AI facilitates the transfer of expertise across various autonomous enterprises.

Reimagining Leadership in Autonomous Businesses

While AI will automate many processes, it will not diminish the importance of leadership. The role of CEOs and top executives will change, but Dr. Riachi is clear that their responsibilities will remain critical. "The rise of autonomous businesses will change the nature of the CEO's role but not lessen their importance," he states. "With autonomous agents shouldering a majority of the decision-making thanks to their superhuman capabilities, top-level management shifts to see business leaders and shareholders take a more active role as corporate gatekeepers."

In an AI-powered business, decision-making will be handled by superintelligent systems capable of optimizing processes and outcomes. However, Dr. Riachi points out that these decisions still need to operate within predefined frameworks and objectives. "Even in a world where optimal decisions can be taken, they must be made in accordance with, or within the framework of, certain objectives and constraints," he explains. "These will be set by the shareholders, not just in terms of financial targets, but also with consideration of the values these companies wish to represent."

With AI assuming more decision-making power, shareholders will take on an increasingly active role, ensuring that the goals of the business are not only financially viable but also ethically sound. "In a world where you have superintelligent decision-making engines, setting such objectives will require shareholders to be much more involved," Riachi emphasizes.

The Future of Autonomous Business

Dr. Riachi sees autonomous businesses as a natural progression in the evolution of work and economic structures. As AI continues to enhance the capabilities of small businesses, it will change not just how businesses operate, but also how value is created within the economy. "The rise of autonomous businesses represents a paradigm shift in how we understand work, value, and corporate governance," he concludes.

By embracing AI, small businesses will not only enhance their operational efficiency but also unlock new opportunities for growth and innovation. "Small businesses are more agile than large corporations. They are less encumbered by legacy systems and can more quickly integrate new AI-driven solutions. This gives them a significant advantage in creating autonomous business models," Dr. Riachi says.

Ultimately, the future of business will be defined by a collaborative relationship between humans and AI. As Dr. Riachi puts it, "This is not about replacing human input; it's about enhancing the capabilities of both individuals and businesses. The future will be a collaborative one, where humans and AI work together to drive progress."

The path to fully autonomous businesses is just beginning, and it will be the small businesses leading the charge, paving the way for a future where autonomy and human expertise work in tandem to reshape the global economy.