You may have seen headlines that suggest AI is coming for the C-suite. In 2022, Chinese gaming giant NetDragon Websoft made waves by appointing “Tang Yu,” an AI system, as its executive director. For middle-market CEOs, that no doubt raises a stinging question: How long until an algorithm is sitting at the head of my boardroom table?
A recent University of Cambridge experiment suggests that day might be closer than we think. In a simulated environment, AI outperformed human CEOs on nearly every standard metric, from inventory management and price optimization to overall profitability. It turns out that for the “business school” portion of the job, the machine is formidable.
However, the experiment hit a wall when faced with “black swan” events. When abrupt, unpredictable changes forced a total departure from historical data, the AI faltered. This is the gap where your value lies.
AI is a master of what is and what has been. But it cannot imagine a world where the standards no longer apply. This is the essence of the Maverick CEO. Consider Steve Jobs. A data-driven AI in 2007 would have likely flagged the iPhone as a catastrophic risk; it threatened to cannibalize the iPod, Apple’s primary revenue driver at the time. Yet, Jobs pushed forward. He also famously removed the floppy drive, the CD-ROM and Flash support from his products long before the market felt ready. He wasn’t following a data set; he was skating to where the puck was going, as hockey great Wayne Gretzky is known for saying. Jobs understood that the purpose of his role as CEO wasn’t to maintain a product line, but to anticipate human desires that hadn’t yet manifested in the market.
Jensen Huang, CEO of NVIDIA, offered a noteworthy perspective on AI at this year’s World Economic Forum. He said that if you watched a camera feed of his workday, you might mistake him for a typist because he spends so much time at a keyboard. But typing isn’t his purpose.
As a CEO, you must sometimes act on your intuition. AI can automate your processes, but it cannot replicate your gut — that subconscious synthesis of decades of experience, industry nuance and human empathy. When a market dries up or a global shift forces your company into uncharted territory, an algorithm looks for a pattern that doesn’t exist. You, however, look for an opportunity.
Still, AI is an important tool for today’s business leaders. Use it to clear your plate. Automate the metrics, the inventory and the logistics. If an algorithm can do the “business school” tasks better than you, let it. And with the time it saves, use that to reconnect with the “why” of your business. Explore where the data isn’t — with your customers, your innovators and your industry outliers.
The future of leadership isn’t human vs. machine; it is the human-driven machine. Trust your gut, lead with compassion and remember: AI can follow the pack, but only a leader can set the trend. ●
Fred Koury is an entrepreneur and investor
