Implementing EC2 Auto Scaling using CI/CD

Hi AWS, I have to implement autoscaling for my application. Ideally I am following a very simple approach where I stored my application code inside S3 bucket and then I leveraged the EC2 UserData while creating the launch template which I am going to further use for creating an ASG.

I was trying to accomplish Auto Scaling using CI/CD and the basic workflow code I wrote is:

- name: Create the AMI for the EC2 instance
           shell: powershell
           run: |
             $instance_id = Invoke-RestMethod -Uri http://169.254.169.254/latest/meta-data/instance-id
             $ami_name="poc-ami-$(Get-Date -Format 'yyyyMMddHHmmss')"
             $ami_id=(aws ec2 create-image --instance-id $instance_id --name "$ami_name" --tag-specifications "ResourceType=image,Tags=[{Key=Name,Value=$ami_name}]" --no-reboot --output text).ImageId
             echo "AMI_ID=$ami_id" >> $GITHUB_ENV
              
         - name: Create the JSON file for Launch Template specifications
           id: create-json
           uses: jsdaniell/create-json@v1.2.2
           with:
             name: "launch-template.json"
             json: |
               {
                "NetworkInterfaces": [
                  {
                    "DeviceIndex": 0,
                    "AssociatePublicIpAddress": true,
                    "Groups": ["sg-089b265ba5151931e"],
                    "DeleteOnTermination": true
                  }
                ],
                "ImageId": ${{ env.AMI_ID }},
                "InstanceType": "t2.micro",
                "TagSpecifications": [
                  {
                    "ResourceType": "instance",
                    "Tags": [
                      {"Key": "environment", "Value": "development"},
                      {"Key": "Name", "Value": "poc-lt"}
                    ]
                  },
                  {
                    "ResourceType": "volume",
                    "Tags": [
                      {"Key": "environment", "Value": "development"},
                      {"Key": "Name", "Value": "poc-lt"}
                    ]
                  }
                ],
                "BlockDeviceMappings": [
                  {
                    "DeviceName": "/dev/sda1",
                    "Ebs": {"VolumeSize": 100}
                  }
                ]
               }
               
         - name: Create EC2 Launch Template
           shell: powershell
           run: |
             $launch_template=(aws ec2 create-launch-template --launch-template-name TemplateForAutoScaling --version-description AutoScalingVersion1 --launch-template-data file://launch-template.json --region ap-south-1)
             

But what I figured out is it will create an ASG but it will not autoscale the application.

The other way I tried to achieve Auto Scaling is using Ansible something similar which is mentioned in this GitHub Repo https://github.com/manicminer/ansible-auto-scaling-tutorial. Is there any other way where we create a pre-warmed AMI where the application is installed which further can be used in launch template to launch AWS Auto Scaling Group.

Please recommend.