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    AI: The Age of Performance Is Over, and the Age of Operations Has Begun
    - It¡¯s not the best model, but the organization that runs it best, that wins

    AI has become a technology anyone can plug in. But not everyone can turn it into results. Even with the same model, outcomes diverge—and the reason is operations.

    When Cost and Waiting Become Strategy
    When adopting generative AI, people usually start by choosing a model. Attention gravitates toward which model is smarter, more natural, or more accurate. But in real workplaces, the question changes quickly. The focus shifts from whether there is a model that gives better answers to whether it can run reliably every day. Operations here are not some grand, bureaucratic form of management. They are the methods that make the same AI cheaper, faster, and more consistently usable.

    The first reason operations become strategy is money. Generative AI is ¡°a tool whose cost increases the more you use it.¡± It differs from typical software where the unit cost drops as more employees adopt it. As questions increase, calls increase, and as calls increase, costs increase. That is why organizations with strong operations block cost leaks from the start.

    For example, many tasks involve repeating similar questions: summarizing internal policies, drafting customer response phrases, or explaining quality standards—work that requires giving the same kind of guidance again and again. Instead of attaching long explanations from scratch every time, storing frequently used sentences in advance and reusing them can sharply reduce cost. Put simply, it is ¡°preparing frequently used wording ahead of time.¡± This simple habit can separate monthly costs at enterprise scale.

    The second reason is waiting. Teams on the ground are as sensitive to speed as they are to accuracy. Even if an answer sounds more convincing, if it is slow, people stop using it. On the other hand, even if an answer is not perfectly polished, if it arrives quickly, the workflow continues. That is why organizations with strong operations prioritize perceived speed first.

    For example, when a call center or customer support team uses AI, a 10-second response time breaks the flow of a consultation. But if a draft appears within 2 seconds, an agent can quickly refine it and send it immediately. Even with the same model, this difference determines whether it becomes ¡°a tool that¡¯s actually used on the job¡± or ¡°a toy tried once and abandoned.¡±

    The third factor is how choices are made. Organizations that send every request to the most expensive model eventually get trapped by cost and latency. Organizations with strong operations handle easy work in lightweight ways and reserve heavy effort for hard work.

    For instance, simple sentence polishing or short summaries can be finished with lightweight handling, while contract drafts that require legal review or high-risk decision documents are routed through stricter procedures. This is where the term routing comes in. In more technical language, routing means ¡°sending work to an appropriate processing path depending on its difficulty.¡± In plain language, it means ¡°easy things fast, hard things carefully.¡± How well this rule is built and continuously refined is the essence of operational capability.

    Organizations That Protect Quality Run Evaluation Like a Factory
    The most common misconception in operational competition is the belief that once you plug in a model, results will automatically follow. In a demo, it can look convincing. But in a live environment, trust collapses when small errors repeat. In the end, what matters is not strength ¡°when things go well,¡± but resilience ¡°when things wobble.¡± That resilience comes from evaluation.

    The word evaluation can feel burdensome because it brings tests to mind. But evaluation here is simple. It is a mechanism that defines the standards of the answer you want, and catches deviations quickly. Suppose there is an AI that summarizes internal policies. What counts as a good answer? If it omits important clauses, it is a bad answer. If it invents content that does not exist, it is an even more dangerous answer. A slightly stiff tone might be acceptable. Setting these priorities is where evaluation begins. Without standards, there is no improvement.

    Organizations with strong operations do not leave failures as mere complaints. They turn failures into samples. They turn samples into tests. They turn tests into automated checks. For example, imagine a sales team repeatedly asking AI something like, ¡°Under what conditions is a discount available for this product?¡± If one day the AI gives a wrong answer, they save the question and the correct answer. Then every time the system changes, they ask that question again. If the same mistake repeats, they know immediately. This is factory-style evaluation: ¡°automatically checking whether this problem still occurs in the next update.¡±

    In real workplaces, this approach stabilizes quality quickly—especially for customer support AI. Early on, it may seem friendly but occasionally produces bizarre answers. In those moments, capable teams collect customer complaint cases and create a ¡°prohibited answer list¡± and ¡°required confirmation questions.¡± For instance, on sensitive topics like refund policies, they prevent the AI from making definitive statements and require it to first confirm the payment type or purchase channel. As these small rules accumulate, incidents decrease. As incidents decrease, teams trust and use it more. As usage increases, more failure data accumulates, and quality improves again.

    And evaluation is what allows operations to escape emotional arguments. One team says it helps; another says it is risky. Both are feelings. Organizations with strong operations convert those feelings into numbers. They track metrics such as the rate at which AI-generated drafts are actually adopted, the number of edits, rework rates, and time to approval. Once metrics exist, arguments shrink and improvement accelerates.

    For Work to Finish, Data and Permissions Must Be Attached
    Even if a model speaks well, if the work does not get finished, it is not a result. What companies want is not ¡°an answer,¡± but ¡°task completion.¡± To complete tasks, you need connections beyond the model. This is where the operational gap becomes large. Even with the same model, one organization sees work flow all the way to completion, while another stops at the draft.

    The first bottleneck is freshness. Companies have many documents, but often do not know where the latest version is. Manuals may be scattered across versions, updates may be shared only by email, or different teams may use the same terms differently. In this state, AI produces plausible wrong answers. That is why organizations with strong operations start with ¡°document cleanup¡± before adopting AI. They clarify who maintains the canonical documents, which documents are retired, and which are for reference. This is not work done for AI—it is work that should have been done anyway, and AI forces the need for it into view.

    The second bottleneck is permissions. The reason enterprise AI is difficult is not the technology, but the rules. The core is preventing AI from violating rules about who can see which files. Permissions here are not just passwords. Different teams have access to different materials. There are drawings that must not be shared with partners. There is restricted data, such as HR information. Organizations with strong operations open access ¡°only as much as needed, to the people who need it¡±—avoiding the extremes of blocking everything or opening everything.

    For example, when the procurement team reviews a supplier contract, the contract text can be visible only to procurement and legal, while only the summary result is shared with other departments. This preserves security while keeping work moving. Without this kind of design, the organization becomes anxious, and when anxiety rises, AI usage stops.

    The third bottleneck is workflow. Writing a good draft is only half the job. Real corporate work runs on approvals, collaboration, and change history. Organizations with strong operations start by deciding where AI outputs should go. They connect the flow—whether it should become a ticket, an approval document, or a customer response template.

    For example, when an engineering team writes an incident report, connecting the system so that an AI-generated draft is automatically registered in an issue tracker turns it from ¡°draft creation¡± into ¡°task completion.¡± If it stops at copy-and-paste, usage drops quickly.

    Expansion Stops When Trust Is Not Designed
    When AI adoption wobbles, the first thing to wobble is not productivity, but trust. What teams fear is not the existence of wrong answers, but the uncertainty of when wrong answers will pop out. Organizations with strong operations reduce that uncertainty. They do not promise perfection; they narrow and control the zones where risk appears.

    So what is a safety mechanism here? Simply put, it is ¡°a device that makes sensitive work handled more carefully.¡± For instance, for sensitive documents such as performance reviews or disciplinary matters, they prevent the AI from making definitive conclusions and design the flow so that a person must confirm. And for guidance statements that could create legal liability for customers, they can make the AI ask for ¡°information that must be verified¡± instead of answering immediately. This may look slower, but it reduces incidents and increases trust.

    Incident response is also part of operations. No system is free of mistakes. What matters is how you recover when mistakes happen. Without logs, you cannot find causes. Without causes, policies get tightened. When policies tighten, teams leave. Organizations with strong operations turn incidents into learning. They record the event, create rules to prevent recurrence, and add it to the evaluation list. Over time, the same mistakes decrease.

    At this point, organizational structure changes. You need a team that does more than attach a model—one that takes responsibility for cost, quality, and security together. Simply put, it is a team that operates AI ¡°like a service.¡± This team is necessary for enterprise-wide scaling.

    Operational Weapons That Become Especially Strong in Korean Industry
    Korean companies have conditions that are favorable in operational competition. The manufacturing base is strong, the culture of quality and standards runs deep, and there is extensive experience designing processes that include partners and suppliers. What is needed to turn generative AI into results is ultimately standards and process discipline.

    First is the speed of standardization. In many Korean organizations, once a rule is set, it spreads quickly. If you first create standards such as prompt templates, document formats, glossaries, and approval criteria, internal diffusion becomes faster. These standards improve both cost and quality. For example, if every team writes the same report in different formats, AI produces outputs in different styles and confusion grows. But if the report format is standardized, AI drafts become more stable and people review faster.

    Second is the instinct for quality control. Manufacturing sites have long managed defect rates and process stability with numbers. Bringing that mindset into AI operations makes you strong. The habit of measuring and improving—where errors occur frequently, which departments see rework increase, which rule changes improve quality—becomes a competitive advantage.

    Third is familiarity with security and regulatory environments. Companies that have worked in finance, telecom, manufacturing, and public-sector projects are accustomed to the language of permissions, auditing, and compliance. Generative AI must pass through this language for enterprise-wide expansion. In the end, the Korean battleground is not the flashiness of the model, but the ability to run it safely. If you can run it safely, you can use it at larger scale—and the larger the scale, the faster learning and improvement become.

    Operations Decide the Outcome
    The competition ahead is not a competition to find a better model, but a competition to produce greater results with the same model. The organization that designs cost, secures speed, checks quality, connects data and permissions, and maintains trust through an operational system will win.

    Even with a great model, without operations it ends as a demo. With operations, it becomes everyday work. The reason the age of performance competition is ending and the age of operational competition is beginning is simple: performance converges, but operations accumulate differently in each organization. Operations, in the end, decide the outcome.

    Reference
    Maslej, Nestor; Fattorini, Loredana; Perrault, Raymond; Gil, Yolanda; Parli, Vanessa; Kariuki, Njenga; et al. (2025). Artificial Intelligence Index Report 2025. arXiv.

    Kohl, Jens; Gloger, Luisa; Costa, Rui; Kruse, Otto; Luitz, Manuel P.; Katz, David; et al. (2024). Generative AI Toolkit: A framework for increasing the quality of LLM-based applications over their whole life cycle. arXiv.

    Patton, Seth. (2025). Introducing Copilot Control System. Microsoft 365 Copilot Blog (Microsoft Tech Community).

    Microsoft. (2025). Copilot Control System overview. Microsoft Learn.

    Amazon Web Services. (2024). Building production-grade generative AI applications: LLMOps and evaluation best practices. AWS Architecture Blog.