How AI is changing the role of CEO

Since the release of Open AI’s ChatGPT, the interest in artificial intelligence (AI) and, specifically, generative AI (GenAI), has been overwhelming. With GenAI capabilities continuing to grow, augmenting human capabilities and providing real-world solutions for business, the potential for efficiencies in this area is huge.

But, with the progression of this new technology, roles will change – and at all levels. So, how will AI change the role of CEO?

AI to give high-level executive summaries

A number of institutions and executives are already using GPT models to analyze official statements and speeches produced by central banks – clearly, this sort of high-level insight is invaluable to CEOs and executives across the globe. The research paper Can ChatGPT Decipher Fedspeak? by Anne Lundgaard Hansen and Sophia Kazinnik highlights the adeptness of these AI systems in interpreting Federal Open Market Committee declarations, categorizing them as either ‘dovish’ or ‘hawkish’. As well as outperforming conventional approaches, this ability also reflects a level of analytical reasoning comparable to human intellect – ensuring that CEOs and decision-makers are considerably better briefed.

Strategic planning and forecasting: AI to reduce uncertainty and predict growth

We are now getting to a point where AI can help CEOs make predictions that increase profit and growth. AI-powered tools can assist CEOs in strategic planning and forecasting by analyzing vast amounts of data to identify patterns, anticipate market shifts and simulate various business scenarios.  

AI therefore reduces the cost and uncertainty of decision-making, enabling new business models and strategies, and improving operational efficiency and customer satisfaction. This enables CEOs to develop more agile, adaptive and future-proof business strategies. 

Adopting high-level AI analysis for competitive advantage

AI analysis is now increasingly being used in business to support high-level decision-making and, just recently, we have seen an example of this insight being employed in elite-level sport – it was recently reported that Manchester United are deploying AI in a bid to get ahead of their Premier League rivals.

The Club’s collaboration with the Institute of Sport at Manchester Metropolitan University is designed to enhance performance across the board. Through this partnership, Manchester United FC will gain access to the latest research and innovative studies via PhD programs dedicated to developing new analysis techniques and metrics with AI. Undoubtedly, this will provide the Club with distinct advantages over other top-tier teams.

CEOs and decision-makers looking to stay ahead of the game are increasingly restructuring their organizations to embrace this type of insight and stay ahead of the competition.

So, is it time for an AI CEO?

A lot of the recent noise around AI has been about how AI might eventually replace lower-ranked workers. But, should the highest-ranked corporate executives also be worried?

In 2017, Alibaba’s CEO Jack Ma made a bold prediction that a robot could be recognized as the best CEO by Time Magazine within 30 years. This idea, once considered far-fetched, gained credibility when Chinese gaming company, NetDragon Websoft, appointed an AI bot as its CEO and its stock climbed. Tang Yu, who they called an “AI-powered humanoid robot,” took on typical CEO responsibilities, such as analyzing high-level data, evaluating risks, making strategic decisions, and enhancing workplace productivity. Following Tang Yu’s successful leadership, the company has seen remarkable performance, surpassing the Hong Kong stock market’s growth. 

But a CEO is more than just a faceless decision-maker

It’s important to remember that CEOs and executives represent more than just day-to-day expertise – they are front and center, as the physical embodiment of the company they run. The Hustle quotes Marguerita Lane, a labor economist with OECD, as saying that “My gut feeling is that CEO will be the very last job to be automated.” This is likely true because most parts of a CEO’s role demonstrably cannot be taken on by AI – that’s to say the human areas, like being a figurehead for accountability, selling a vision, communicating with the public and negotiating with other executives. Human decision-making is all about context and experience – and this is something AI cannot replicate.

Working at the intersection of human and AI creativity

McKinsey estimates that around 25% of a CEO’s time is spent on tasks that machines or AI could take on — so reviewing financial performance, sending high-level emails and forecasting trends. By assisting with these tasks, more time can be invested by CEOs on the business of communicating and explaining what their companies offer their clients and customers – and it is here where AI is truly helping CEOs and executives. 

Business leaders must adapt to AI-driven disruption in their industries, anticipate new competitive forces, and identify opportunities for leveraging AI to drive innovation and growth. Over the last 20 years, the top tech companies have all leaned into disruptive innovation. They’ve ‘broken the mold’ and shaken up traditional markets by bringing in new products, services, or ways of doing business, often with AI at the forefront. 

It's crucial for the culture of innovation to keep going strong in technology. Industry leaders have a big role to play here. They should see AI as a valuable partner and be open to all the possibilities it brings. This approach can open new avenues for growth and redefine the rules of the game in their sectors. In short, it’s about bringing AI to the strategy table as a core team member and taking advantage of all it has to offer.

Faisal Husain

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Faisal Husain is Co-founder and CEO at Synechron