Concept of future employment where robots will occupy different jobs, especially in the finance ... [+]
With AI and robotics and generative AI, we are at an interesting intersection of human vs. machine assuming roles of a CEO.
I have been following the developments of Sophia, from Hanson Robotics, as her evolution gives us a perspective of what’s coming for future cobots and impacts to CEO leadership roles being given to machines vs humans.
Dictador, announced hiring the first world ever AI robot as a CEO, a contract with the world's first ever AI CEO robot signed on the 30th of August, 2022 launching her official career in Dictador. The human-like robot, incorporating AI is called Mika, and she is the official face of Dictador, the world's most forward-looking luxury rum producer. This move demonstrates their position as one of the most advanced and thought-leading organizations globally. It underlines the brand's passion for innovation and headlines the beginning of machines in corporate governance roles. Mika is the first CEO female robot that is an official board member, responsible for Arthouse Spirits DAO project and communication with the DAO community, on Dictator's behalf.
Daniel Langer, a professor at Pepperdine University stated:
"What impresses me most is that Dictator's vision of impacting the future has no limits of imagination and value creation. After impressive and inspiring endeavours around the metaverse, NFTs, and the Arthouse Spirits DAO, the new initiative underlines the push into the future: the world's first CEO that is an AI powered robot. Only rebels at heart can pull off such an idea, and inspire a new generation of digitally native, young, and trend-setting luxury clients."
What lies ahead?
Economists are actively researching long-term trends around the uptake of automation in the workplace, noting that the number of robots in use worldwide increased threefold over the past two decades to 2.25 million. While researchers predict the rise of robots will bring about benefits in terms of productivity and economic growth, we now know the impacts to job loss are going to be very harsh to professionals, and now emerging CEO robots.
There is even a site tracking views on will a robot take over my CEO role. Although this is not in the near term horizon, the fact this is emerging and with the accelerating capabilities of generative AI, singularity is fast becoming a reality.
You may recall that Alibaba CEO, Jack Ma, predicted that we are mere decades from having robots at the helm of organizations. He predicted that by 2047, a robot CEO would make the cover of Time magazine. This prediction may be understated, as in March, 2023, Tang Yu, an Artificial robot, was appointed CEO of the company NetDragon Websoft. The business beat Hong Kong's stock market in addition to experiencing a significant increase in the stock market value.
While advancements in AI and robotics continue to evolve rapidly, the decision to appoint a robot as a CEO involves complex legal, ethical, and practical considerations.
The adoption of a CEO robot will require a shift in regulatory frameworks, social acceptance and technological advancements. Additionally, corporate governance structures and shareholder expectations would need to accommodate such a dramatic change.
Currently, CEOs play critical roles in decision-making, leadership, and strategic direction, which involve human qualities like: intuition, emotional intelligence, and complex judgment and hence the odds of a CEO being replaced by a robot is likely one of the last jobs to be a risk, from my perspective.
However, I do believe there could be Co-CEO roles emerge; A CEO human guiding the organization and all of the decisions being reviewed by a Co-CEO AI BOT, analyzing all the communication, decision, impacts and running risk scenarios of predictive odds of success or failure, so don’t be too surprised - if we start seeing COO - Cobots, CFO Cobots, CHRO -Cobots and CEO cobots emerge. We already have AI Board of Directors in some countries.
We have learned already at SalesChoice Inc. that an AI Model that is customized on large data sets can predict sales forecasts and outcomes more accurately than a sales manager can, so a CRO can have extra confidence when an AI gives a predictive score on any revenue outlook on any time dimension, so as these approaches are already accepted in sales organizations, just think of what’s coming in 2024 as AI investments by the technology titans is accelerating 10X.
I also did a ChatGPT search asking it what are the responsibilities of a CEO in regards to AI governance, and this is what it said:
- Setting the Vision and Strategy: The CEO is responsible for setting the overall vision and strategy for AI adoption and governance within the organization. They define the strategic objectives and goals for AI initiatives, ensuring alignment with the company's mission, values, and long-term business strategy. The CEO's leadership sets the tone and direction for AI governance efforts.
- Ensuring Ethical and Responsible AI Use: The CEO plays a pivotal role in promoting ethical and responsible AI use. They establish policies and guidelines that govern the ethical and responsible development, deployment, and use of AI technologies within the organization. The CEO ensures that AI systems and algorithms are designed to respect privacy, data protection, and fairness, and are in compliance with relevant regulations and industry standards.
- Allocating Resources: The CEO has the responsibility of allocating necessary resources, such as funding, talent, and infrastructure, for AI initiatives and governance efforts. They ensure that sufficient resources are dedicated to AI governance activities, including robust data management practices, security measures, and ongoing monitoring and evaluation of AI systems' performance and impact.
- Cultivating an AI-Ready Culture: The CEO plays a key role in fostering a culture that embraces AI and its governance. They promote awareness and understanding of AI technologies and their potential benefits and risks throughout the organization. The CEO encourages a culture of continuous learning, where employees are encouraged to acquire AI-related skills and participate in AI governance training programs.
- Collaborating with Stakeholders: The CEO collaborates with various stakeholders, including the board of directors, executive team, employees, customers, and external partners, to ensure effective AI governance. They foster collaboration between different departments and teams to establish cross-functional governance frameworks and ensure that AI initiatives align with organizational goals and values. The CEO also engages with external stakeholders, such as regulatory bodies and industry associations, to contribute to the development of responsible AI practices and standards.
- Risk Management and Accountability: The CEO assumes ultimate accountability for the risks associated with AI adoption and governance. They work with the executive team and relevant departments to identify potential risks and establish risk management strategies. The CEO ensures that mechanisms are in place to monitor and address risks related to data privacy, security breaches, algorithmic bias, and unintended consequences of AI systems.
- Promoting Transparency and Trust: The CEO plays a vital role in promoting transparency and trust in the organization's AI initiatives. They communicate the organization's AI governance practices and progress to internal and external stakeholders, including employees, customers, investors, and the public. The CEO establishes mechanisms for soliciting feedback, addressing concerns, and maintaining transparency in AI decision-making processes.
- Monitoring and Evaluation: The CEO oversees the monitoring and evaluation of AI initiatives and governance frameworks to ensure their effectiveness and alignment with organizational objectives. They establish key performance indicators (KPIs) and metrics to assess the impact of AI on business outcomes, ethical considerations, and customer satisfaction. The CEO uses these insights to guide decision-making, course correction, and continuous improvement in AI governance.
I would rate this as a very solid answer, and also think a CEO could step back and evaluate him or herself on their AI leadership in these areas and even start to consider a Co-CEO risk navigator - and follow these developments and their value.
Conclusion:
In summary, the CEO plays a pivotal role in AI governance by setting the vision and strategy, promoting ethical and responsible AI use, allocating resources, cultivating an AI-ready culture, collaborating with stakeholders, managing risks, promoting transparency and trust, and monitoring and evaluating AI initiatives. Their leadership and commitment to responsible AI governance are instrumental in driving the organization's AI adoption and ensuring its alignment with ethical principles, regulatory requirements, and long-term business success.
This, however, makes business sense but when you dig into the details, too many CEO’s have given oversight to CIOs/CTO’s on AI governance and as a result deeper cross functional leadership and learning is not as mature as it could be.
We are entering a world where all leaders at the helm of organizations must firmly have strong digital, AI literacy, advanced statistical and data management skills.
Data is not the new fuel or oil, it is the new oxygen and we all know that we need clean data to innovate and sustain our business models.
If we cannot get this right as humans, then more cobots will increasingly gain solid ground as smart CFO’s, COO’s etc... I will continue to research these areas, and in my next article, I will discuss AI taking over board director roles as this is also underway in different countries experimenting how far AI can go.
Until we have more regulatory constraints and laws, AI innovators are pushing the envelope and investors continue to flock to areas in AI, especially generative AI, despite all the warnings, humanity continues to be conflicted in building responsible and trusted AI practices.
What world do we want to create - fellow humans?
Research:
Video: Microsoft CEO Perspectives on Changing Tech Scene
