The Future: AI as the CEO?

**SPEAKER_2** (0:04)
The Bliss Business Podcast, the show about empathy, connection, and consciousness in business. Today's episode is brought to you by Zero Company, your paid search, social media, and programmatic ad experts.

**Stephen Sakach** (0:15)
Hello, everyone, and welcome back to the show. But our topic today, will AI be the CEO of the future for your company? Harvard Business Review just came out with a study. That's the topic today. I'm Stephen Sakach, here again with tullio Siragusa and Ash Maher. Hey, guys.

**Ash Maher** (0:35)
Hello.

**Tullio Siragusa** (0:36)
Nothing like one log in the middle of a conversation, right?

**Ash Maher** (0:39)
Yeah.

**Stephen Sakach** (0:40)
All right. Let's dive into it. Will AI replace CEOs and will employees prefer this outcome? Some of you are nodding yes right now, I know it. But I read somewhere a year ago, there was a company that said, they're replacing their CEO with AI. And my initial reaction was, no, you didn't. You're just saying you did and you're just asking ChatGPT some questions and pretending you did. And I know it, you know it. And I'm pretty sure that was the case. But it's not to say that this isn't and won't be a possibility in the future. I absolutely thought it was then. And even more so now, that after this Harvard Business Review study. So I want to cover that study real quick. So they just came out with this report on a game they ran with 344 participants and ChatGPT version O. So where everyone was a CEO and they had to make decisions based on their virtual automotive company. And basically, AI smoked every contestant by every metric, just about, except there was one problem. And that was AI struggled with these black swan events, such as market collapses during COVID pandemic kind of stuff. They had programmed in unpredictable shocks to the system, like supply change issue, collapsing and pricing levels, things like that. They had student participants and executives participating in this. And the top performing students were the ones that adopted long-term strategies, and they avoided rigid contracts and minimized their inventory risks and manage growth very cautiously and assured their flexibility. And so when these market shifts happened, they were in good position.
The GPT 4.0, on the other hand, had like this string of early successes, and it locked into this short-term optimization mindset, just relentlessly maximizing growth and profitability, and right now CEOs are cheering for this, until the market shock hit, and then it derailed. And interestingly, top executives also fell into the exact same track. They were doing the same stuff, but they were all fired faster than the long-term thinking students, but on this, based on a virtual board they had that would fire you if you failed in some way. So to me, all that is a very fixable problem. I mean, we're talking about the current AI technology. So like Sam Altman said, superintelligence will be here in a few thousand days, whatever that means, but, you know, could be, what, four or five years. Right now, AI IQ is, Mo Gadat said is about 150, 155 And he says, that's like Elon Musk right now. Side note, though, there are a lot of kinds of lines of intelligence, and you can be strong in one and subpar in others.
But what happens when AI gets to 250 IQ, 350, 500, you know, a thousand? So for fun, we're going to let AI kind of make the case for the pros and cons to discuss the merits of it being CEO. So we basket, hey, give us the pros and cons. So, and then we're kind of going to discuss this. tullio, what does AI first say is a pro about being the CEO?

**Tullio Siragusa** (4:15)
Well, first of all, it just reminds me of the conversation we had with some patent a couple of weeks ago on the live broadcast on Thursday, because we were talking about creative works and how the way it's set up now, you still need the experience and your input, which isn't something that I can just replicate. Like you can't take a bunch of research and say, give me some insights on this unless you have some expertise around that that you can feed it into. But there's definitely some interesting things that it can do today that might outperform. In fact, will outperform most human beings, especially around data-driven decision making. We know a lot of energies put into data-driven decision making. In fact, even like if you're looking for a CEO, a lot of the job description will say or C-suite executive, the job description will say, we're looking for people who know how to make data-driven decisions. Now, one of the advantages of AI is that it excels at processing vast amounts of data very quickly. And it's really good at identifying patterns and making decisions based on hard evidence.