Is AI Revolutionizing Startup Management Challenges or Is Human Leadership Still Essential?

The Rise of AI Startup Challenges and the No-Code Builder

With the rise of AI, especially in terms of development, individuals who have ideas can now access the ability to create something from scratch without needing a specialized skill set. That’s a massive shift. Where previously you needed to know how to code or have the money to hire a dev team, now a solo founder can mock up a SaaS, design an interface, and launch a product — all using AI tools.

But with this new wave of opportunity comes something most people aren’t talking about: the rising need for business administration and an understanding of startup management challenges.

Of course, when it comes to business administration, there are an increasing number of AI tools that claim to do specific pieces of the puzzle. You’ll find tools for finances, basic tax calculations, task management, even legal docs — and they can be genuinely helpful. But here’s the thing: business administration still requires knowledge of basic business principles. No tool (currently) can substitute for that foundational understanding in a holistic way.

Business Administration Still Matters

One thing I believe will increase dramatically is the number of people starting companies without knowing what they don’t know. That blind spot — that “unknown unknown” — can absolutely kill a company before it even gets off the ground.

While the beauty of AI has allowed for the development or creation of new applications that individuals previously couldn’t dream of building — due to coding being such a unique and complex skill set — there’s now this huge gap. Because now they don’t have to know how to code… but that doesn’t mean they know how to run a business.

There will likely be a significant increase in the need for assistance with business administration. Whether it comes to finance, taxes, compliance, or operational setup, this stuff matters. Maybe not accounting in the traditional sense, but still — operations, systems, structure. Things that aren’t easily solved with just another tool.

Yes, I expect AI will fill some voids here. And people can certainly find tools to implement for specific areas — those one-off tools that plug a gap or automate a task. But the problem remains: not knowing what you don’t know can present serious issues for founders, especially when you’re the only one making decisions.

There’s a lot that goes into running a company that AI likely won’t be able to solve for quite some time, specifically, startup management challenges. And sure, AI is being improved every day. It’s moving fast. But at the end of the day, business isn’t just about tools — it’s about a holistic approach. It’s about understanding how to interpret data, talk to customers to gather insights, build a team, adapt in real-time, and structure systems around growth. Maybe AI will eventually get to a point where you can plug in a business idea and just let it run the company.

But realistically? That’s not what entrepreneurs want.

Why AI Can’t (Yet) Run a Company

Typically, when you build a business — especially as a founder — your company is "your baby", as they say. And letting something else run it for you? That doesn’t sit right. AI doesn’t have the same desires as you. It doesn’t have the same underlying motivations. It doesn’t have the same passion. At least not yet.

What is it, really? If you’re in this just for money, that’s one thing. Maybe a hands-off AI-run business sounds appealing. But if you’re trying to build something that’s unique in the market, that actually matters, that you put your passion into, that makes the difference you want to see in the world, then AI isn’t going to get you there on its own.

I don’t think AI will ever truly have the ability to hold a full, holistic overview of what should drive a business forward. Emphasis on should. Knowing what to prioritize – maybe. Knowing how to think through opportunity cost, team morale, long-term strategy — these are innate human traits, not so much algorithmic ones.

Sure, AI might be able to keep things afloat. Maybe measure some KPIs, suggest some A/B tests. But when it comes time to piece it all together in a way that drives a company forward? That’s where entrepreneurs are going to struggle if they rely solely on AI to manage their ever-changing startup challenges.

And that’s exactly why I think it’s so important to work with people who actually have a deeper knowledge and understanding of what goes into a business. What goes into a startup. Because while it’s really great to see that we now have the ability to bring ideas to life from scratch — much easier and more accessible for the average person — running a company still requires a lot more admin than AI can currently manage.

Tools can assist. Tools can cut waste. Tools can reduce hours and help streamline efficiencies. But they can’t run a business — not right now. And honestly, I don’t see that changing anytime soon.

And even if it does? If we ever get to a point where AI is running businesses completely… well, at that point, AI’s are running the world. And that opens a whole other can of worms.