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By:

Rahul Kulkarni

30 March 2025 at 3:32:54 pm

The Hidden Prerequisites for AI Leverage

Multipliers don’t create direction. They amplify what already exists Over the last two weeks, we’ve done something most AI conversations avoid. We’ve slowed down. First we acknowledged the truth founders don’t usually say aloud: AI isn’t a cure. It’s a diagnostic. In Week 2, Rashmi took us inside real operations and showed where AI breaks first: SOP gaps, unclear inputs, broken handoffs. This week, I want to address the question that quietly follows both pieces: If AI is not the engine of...

The Hidden Prerequisites for AI Leverage

Multipliers don’t create direction. They amplify what already exists Over the last two weeks, we’ve done something most AI conversations avoid. We’ve slowed down. First we acknowledged the truth founders don’t usually say aloud: AI isn’t a cure. It’s a diagnostic. In Week 2, Rashmi took us inside real operations and showed where AI breaks first: SOP gaps, unclear inputs, broken handoffs. This week, I want to address the question that quietly follows both pieces: If AI is not the engine of change, then what actually creates leverage? The answer is uncomfortable, especially in a year obsessed with tools. Leverage doesn’t come from intelligence. It comes from conditions. Why tools don’t create leverage on their own Founders often ask me, “Which AI tool should we standardise on?” But that question skips a more important one: “What must already be true in our business for any tool to help?” Because AI doesn’t generate value in isolation. It multiplies whatever system it is plugged into. If the system is stable, AI accelerates outcomes. If the system is fragile, AI accelerates noise. This is why some businesses see dramatic gains from very simple AI use cases, while others struggle even after large investments. The difference isn’t ambition or intelligence. It’s readiness. Condition 1: Stable processes, not heroic execution In many SMEs, outcomes depend on who handled the work, not how the work is designed. The best performer becomes the process. Everyone else “manages somehow.” Humans are surprisingly good at compensating for this. They remember exceptions. They improvise. They fix things quietly. AI cannot. For AI to add leverage, work must be stable enough that two different people can do it the same way and get roughly the same result. Not perfect … just predictable. This doesn’t require a consulting-grade process manual. It requires one honest answer to a simple question: “If someone new joined tomorrow, would they know the one right way this is done?” If the answer is no, AI won’t help yet. It will only surface the inconsistency faster. Condition 2: Clear decision rights, not more information Most SMEs don’t suffer from lack of data or ideas. They suffer from lack of closure. Decisions float. Approvals are implicit. Founders become the final checkpoint. AI is excellent at generating options. But options without decision rights create paralysis, not speed. For AI to create leverage, three things must be clear: 1) who decides, 2) on what basis, and 3) when the decision is considered final Without this, AI increases the volume of suggestions, reports, and analysis—but execution still stalls. Leverage comes not from knowing more, but from deciding faster once the information is good enough. Condition 3: Data discipline, not “more data” Most businesses don’t have a data shortage. They have a trust problem. Ask three people the same question about price, delivery date, inventory and you’ll get three answers. Each answer has a story. Each story feels valid. AI doesn’t resolve this. It confidently responds based on whatever inputs it sees. So, the question is not, “Is our data perfect?” It’s, “Which data must be right for this decision to work?” AI leverage begins when a business agrees on: a small set of critical fields a single source of truth and clear ownership for keeping those fields accurate This discipline is boring. It’s also non-negotiable. Without it, AI becomes a well-spoken guesser and founders return to verifying everything themselves. Condition 4: Rhythm and review loops, not constant monitoring One reason founders feel exhausted is that the business has no visible rhythm. Everything is urgent. Nothing is truly reviewed. Issues surface only when they become painful. AI doesn’t fix this. In fact, it can make it worse by creating the illusion that “everything is being tracked”. Leverage comes when a business has: a weekly cadence for reviewing key work clear checkpoints where output is evaluated and predictable moments where problems are surfaced early When these rhythms exist, AI becomes useful support … summarising, flagging, highlighting. Without them, AI just adds another stream of activity to monitor. The reframe that matters AI is not an engine that pulls your business forward. It is a multiplier. Multipliers don’t create direction. They amplify what already exists. This is why two companies using the same tools can experience completely different outcomes. One has conditions in place. The other doesn’t. And this is also why rushing to “scale AI” often backfires. You can’t multiply chaos into clarity. A grounded starting point If you’re wondering where to begin, don’t start with AI strategy. Start with one workflow. Just one. Stabilise it. Clarify ownership. Define inputs. Install a review rhythm. Then and only then introduce AI into that slice of work. When AI works there, you’ll know why. And when it doesn’t, you’ll know what to fix. That’s leverage. (The writer works with founders and second-generation leaders to design operating systems where growth strengthens people, not exhausts them.)

Indian Shipbuilding A Must Win Marathon

Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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