4 ways to drive innovation in an era of AI

We’re in an AI era that is redefining the way we work, live, and do business—in exciting ways. But there’s also a problem: 99% of attention is focused on the future of AI, which risks missing all the innovation—both AI and non-AI related—happening in businesses of all sizes and in all sectors. In fact, some of the most inspiring advancements I’ve seen recently have come from small and midsize businesses (SMBs). Take SMBs like BetterRx, which is using software to improve access to medication for hospice patients; or Orbit Fab, the first commercial spacecraft refueling service.

This hyper-focus on cutting-edge AI and the “next big thing” poses a dilemma for many entrepreneurs: There is more pressure for immediate wins, increased investment competition, and more work needed to maintain customer loyalty and attract talent.

In this environment, driving your team to innovate—whether in AI or not—is key. Here are four approaches that have helped me lead and deliver impactfulinnovation.

1. Build a team that shares your mission.

Hire not just for skill, but also for purpose. Having the right technical qualifications is important, but innovation will be more successful when your team is genuinely passionate about your vision.

With the right team in place, one of our most important roles as leaders is inspiring motivation. Incentivesand compensation are different for this, as anyone who has left a well-paying job because of a bad boss or a terrible culture could tell you.

The most effective incentives I’ve seen are built around a shared passion and culture of empowerment. Encouraging new ideas and ownership without fear of failure can motivate your team to go above and beyond.

As you orient your team on the customer and train them to tune out the hype, it’s important to celebrate every win—not just the biggest wins. Reinforcing that innovation can take place at every level is important. In our company meetings, we have updates delivered by people in all levels. We also invite customers to talk about innovations they want and need. These approaches help keep our team jazzed and motivated, to drive faster and better results.

1. Internalize your customers’ pain points.

One uncomfortable truth for entrepreneurs is that not every innovation will change the world as much as hoped for. But often, it’s not about changing the world for everyone, but instead creating a better world for your customers.

Customers should be at the heart of innovation. To develop impactful solutions, your team needs to understand customers so deeply that they feel their pain points like they were their own. From there, they can harness their expertise to solve those pain points. Only then can you deliver solutions that excite the customer and directly address their needs, building lasting loyalty—a precious commodity in this environment.

The best way to do this? Listen. One of the best pieces of advice I’ve been given is that we have two ears and one mouth. Use them proportionally. I meet customers weekly, listen to customer service calls, and seek feedback from customer facing teams. I want to hear directly what we’re getting right, and more importantly, what we’re getting wrong.

If you stay curious and lead by example when it comes to listening and asking questions, impactful innovation flows naturally.

1. Constant innovation creates enduring impact.

In a hype era, there is so much focus on the biggest breakthroughs. But lasting impact doesn’t happen overnight. There’s also magic in constant innovation—the smaller tweaks that happen daily to improve customer experiences.

I’ve built BILL over two decades, and I’ve learned that focused and intentional innovation over time creates sustainable and enduring success. We can do this because the culture we’ve created at BILL instills continuous improvement and customer prioritization at the heart of teams.

Life is a marathon of sprints. Hype focuses only on the sprints. If we’re only focused on the next big thing, we’ll never get there. The trick is to prioritize resources to deliver the big category-leading innovations, while also creating a culture that is inspired to constantly improve every day. Constant iterations aligned with customers’ real-world needs ensures genuine value, and help us build trust over the long-term.

1. Be the sherpa.

Building a business is a lot like climbing a mountain with lots of peaks and valleys. It’s hard work, and often you’re focused on putting one foot in front of the other. But if you ask any climber who the MVP is, they aren’t going to say it’s the first person to reach the summit. It’s the sherpa.

This is the role I aspire to take on as a leader: having the deepest understanding of the terrain, motivating and guiding the team, always thinking about the next milestone, and forever charting the best course to the mountaintop—with the goal of getting everyone there together. Having a strategic vision means keeping my eyes trained on the summit, even when the peak is obscured.

Five years ago, BILL’s revenue was just north of $100 million. I knew we needed to think about the $1 billion mark. And then came the pandemic. Suddenly, we had a set of new, very serious priorities: Keep our company moving forward while also helping our customers and employees make it safely through uncharted territory. We came out the other side stronger, and last year we crossed that $1 billion point.

Staying focused on the mountain peak—and not just the next big thing—empowers and enables your team to drive the innovations needed to get you there.

An era for great leadership

The hyper-focus on AI is not ending anytime soon, and neither is the era of broad-based innovation with which it’s intertwined. True winners in this environment will be businesses that remember innovation is not just about delivering the “next big thing.” No matter your business’s size or sector—whether you are working in AI or not—success requires constant dedication and drive to transform the lives of those who trust in your products, services, and your mission. This is how we achieve enduring and impactful innovation.

René Lacerte is CEO and founder of BILL.