If A.I. Can Do Your Job, Maybe It Can Also Replace Your CEO
nytimes.com
nytimes.com
There still needs to be some entity who says "here is when we'll listen to the AI, here are the roles the AI will fill, etc", and that entity IMO is effectively the CEO.
I suppose you could say that entity is the board, and the AI is the CEO, but in practice I think you'd want a person who's involved day-to-day.
The article quotes:
> "...But I thought more deeply and would say 80 percent of the work that a C.E.O. does can be replaced by A.I.”...That includes writing, synthesizing, exhorting the employees.
If AI replaces those things, it has not replaced the CEO. It has just provided the CEO leverage.
Exactly. And you could say this about a lot of other roles as well. AI certainly has its flaws, but at this stage it does rather frustrate me when people actively resist using that leverage in their own roles. In many ways I couldn't go back to a world without it.
My days are now littered with examples where it's taken me a minute or two to figure out how to do something that was important but not particularly interesting (to me) and that might otherwise have involved, for example, an hour or two of wading through documentation without it, so that I can move on to other more valuable matters.
Why wouldn't you want this?
There's some large contingent of the population who believes being "natural" places them on a moral high horse.
The vast majority of articles about CEOs are populist rage-bait. The goal isn't to portray the actual duties and responsibilities of a CEO. The goal is to feed anti-CEO sentiment which is popular on social media. It's to get clicks.
AI: I am proposing an organizational restructuring of the company to improve efficiency.
CEO: What sort of broad philosophy are you using to guide this reoorg?
AI: None. This week I interviewed every employee and manager for thirty minutes to assemble a detailed picture of the company’s workings. I have the names of the 5272 employees who have been overpromoted relative to their skill, the 3652 who are underpromoted or are on the wrong teams, 2351 who need to be fired in the next year. Would you like me to execute on this plan or read you all the rationales?
CEO (presumably after the AI has been right about many things before): Yeah OK just go ahead and execute.
Like, we’re talking about a world where CEOs are no longer making high level “the ship turns slowly” decisions based on heuristics, but a world where CEO AIs can make millions of highly informed micro-decisions that it would normally be irresponsible for a CEO to focus on. All while maintaining a focus on a handful of core tenets.
Golden handshakes mean if they move on they win. They can practically suck a company dry & move on to another one thru MBA social circles.
This idea is as old as the hills. I guess you could call it the "first, we kill all the [middle] managers" approach. It's popular with people who don't really understand how managers help groups of people work together efficiently.
- solve problems and conflicts
- escalate if neccessary
- communicate targets
But not:
- provide fuzzy warm feeling of belonging (at least in the companies where you are just a wheel)
So, replacing management is an old idea, but perhaps becoming feasible? Or did I miss something irreplaceable of the human element?
For line managers, the manager has to talk with human employees, and bad managers asides, that is where the human element comes in: fundamentally, your employees are still human.
On the other hand, if the line managers are all human, then the middle managers have the same human elements, too.
This seems to indicate that AI could relieve managers from answering dumb questions at least partially.
Two of the biggest things people realize when they first become managers:
1. Managing is much harder than it looks from the outside.
2. Your past managers were probably dealing with a lot more than they let on. As an IC you think you know and see everything, but you're really only seeing the tip of the iceberg.
There are exceptions, of course. One friend is a manager at a company with more managers than ICs. By his own admission, managers there don't do much at all. Of course, the company is also bleeding money with little progress, so these situations usually don't last very long. My above points are in reference to real companies doing real work, not the rare retirement community for managers.
Shielding ICs and managers below them from bullshit is probably a manager's most important job and they're doing that job well, the ICs won't be seeing their work, by definition, which leads to an interesting paradox.
Once AIs are close to doing the job, they have fundamental advantages. They're faster than humans. They have far more network bandwidth. The next frontier is figuring out how to interconnect AIs into a management team.
Can AIs use spreadsheets yet?
I'm still expecting "Microsoft Middle Manager 2.0" at some point.
In case that wasn't rhetorical, you can upload an xslt or csv file to ChatGPT and ask it to do stuff and it'll give you answers and can update the file with new formulas that it writes and you can download an updated copy as an xslt or csv. It's pretty neat, for those who need help writing formulas.
"They will be figureheads with some responsibility, but not day to day operational duties" sounds like the job description of a politician in a democracy. They get hired (sorry, elected) by a mob who knows stuff all about the day to day running of the place and so vote on other issues. As a consequence the people they elect are rarely good at anything other than getting elected. Nonetheless they stand up and proudly claim they will fix everything now they are are in charge, and consequently get blamed for whatever goes wrong during their tenure, and then we fire 'em.
The main danger is when nothing goes wrong. That lets them stay for a while, and if they are actually competent they may start running things, which lets them re-arrange the laws, the police and the judiciary so they are hard to boot out.
If that happens we tend to introduce term limits. We can't have competent managers running the place - that's far too dangerous.
/s
Dilbert S1E2
Dilbert is fired from his drab job, but rehired at Nirvanaco. The new company is a paradise of kind people, productive collaboration, and futuristic technology. Eventually, Dilbert discovers Nirvanaco has no marketing department. The company overeagerly creates a marketing dept, and the episode ends with the fiery demise of Nirvanaco.
However, I doubt it could replace a CEO. The reason for my doubt is that being CEO is primarily a social job.
> The non-existence of someone/thing able to do my job isn't why I work at my job.
Me neither. The reason that I'd quit, though, is because if my job can be automated then there's no point in doing it. I don't want to go to work every day knowing that I'm just a meat robot who isn't actually necessary.
I'd rather spend my time doing something that I can bring actual value to.
Until I can submit an App ID as a responsible party, I'm guessing CEOs will be here to stay.
I could see an LLM arguing for personhood and our lawmakers being dumb enough to agree with it.
No, not really. They are considered independent legal entities with a subset of the same rights that people have, but they aren't broadly considered "people".
The new FinCEN BOI reporting requirement seems to be an attempt to make that easier. I don't see them accepting URLs as company officers any time soon.
OTOH, there are also towns with dogs and cats as mayors, but I suspect being elected makes the difference there.
I guess the only way to know for sure is to try, but I can't see the tax people accepting "my dog is the CEO and ate the taxes and ChatGPT was our treasurer, so collect from them", for example.
But I've been surprised before.
https://web.archive.org/web/20240529103000/https://www.nytim...
Honestly, let’s just start by replacing CEOs with people who are paid in somewhat of a sane way proportionally. There’s only one CEO job and a handful of senior leader jobs. There are almost certainly far more qualified individuals than there are positions to fill - so why are companies continually giving away their coffers to these executives?
Is there really nobody qualified who would jump at the chance to be the CEO of Disney for a modest $5 million/year salary? That would be a dream job for a whole bunch of cast members and imagineers, many of whom have real industry experience and education credentials that would make them qualified.
It’s weird to me how companies use obvious supply and demand logic for all the employees except for the executive suite. Is there a shortage of MBA graduates or something? Isn’t it one of the most popular majors?
I’ve seen compensation and equity compensation numbers that just look completely insane to me. Companies that have CEOs that make enough money to be equal to 10% of the company’s entire debt load or profit or other crazy huge metrics. In what world is a CEO worth more than reducing the company’s debt by 10% or increasing their profit by 10%? In what world does any individual need to be given compensation that is in the triple digit millions of dollars for anything?
Use it to support your decision making process all you like, but you shouldn't trust a big opaque ball of matrix arithmetic to make the final call on anything that matters.
I still wonder if this is something AI will ever be able to do, or if it’s much harder than we suspect and at least several more AI winters away.
It’s basically the is/ought problem, where the theory is that one cannot get to what one “ought” to do based only on what “is”.
Like we might say “it is cold outside, therefore you ought to put on a coat”. But, should you? Maybe you enjoy the cold, or maybe you live in an area ruled by a street gang and your coat is the wrong color and you risk being shot if you wear it outside.
AI could eventually make a much more informed recommendation, with more context, but at some point it begs the question of how close the model needs to get to reality, which obviously has some limit.
Addition: Hell, it could probably solve 2. LLM that does sentiment analysis. Sentiment drops below a certain level, the model knows to put in an order for Dominos for a company pizza party, since this is about as much morale boasting as most employees get.
AI cannot bear responsibility, so who is going to take a blame if AI does a very bad job?
sounds like a gamble
As opposed to sometimes deliberately leading companies to failure by mortgaging the company's future so they can maximize short term profits, including their bonuses, then leaving before it all bursts into flame?
if the company has failed after squeezing short-term profits, there could be a chance that failure was inevitable, and CEO just salvaged and cashed out what was possible and left debtors/employees/suppliers on the hook, while shareholders (CEOs boss) got paid in $$$
When the AI screws up - the Board will loudly blame it, then watch as the SecTeam installs a new AI CEO.
CEOs are consequence avoidance machines.
And just to be clear: I don't think we should be considering paying yourself an obscenely high exit bonus after you fucked up as "bearing responsibility".
Same way no good FAANG engineer would sign up without good pay package like base+RSU+bonus - same way no good CEO would sign up for a high risk CEO job without golden parachute.
Because it could well be their last job if they fail. or last good CEO job.
Imagine having only one shot at working as Engineer and without ability to jump ship because all your actions are public and you are associated with your company success
This doesn't make sense
The golden parachute means that these jobs are not "high risk" at all
Oh no you got fired and wound up with a severance package that is big enough that it could set you up for life and you can retire right now? The horror!
That's not risk. Someone working a minimum wage job living paycheque to paycheque is taking more risk when they take a sick day than any CEO with a golden parachute contract ever takes in their whole life
If you want to hire CEO, that means your company is in trouble and desperately need good steward. You want to hire strong CEO, but he is taking a risk that he demands to be compensated for in case you change your mind want to change CEO again.
with engineers - risk is smaller, plenty of engineers just jump ship to another company (and many even get a pay bump) after failing at current job. Thats why severance is smaller than CEO
CEO may get $20 min as severance, but would potentially lose hundreds of mils had he not taken this job, and instead pursued another job that lasted for longer
Same situations with politicians and police forces, they create a club whereby all members are unduly supported.
Two of the companies I've worked for have had their CEOs fired/replaced for poor performance.
One of them was also mismanaging finances and spending for his own gain. It became common knowledge in the local investor community. He was never able to return to being a CEO again, except for some unknown company in Europe where he was briefly a remote CEO.
If you want more public examples: Sam Bankman-Fried, Elizabeth Holmes, etc. are literally in jail. Many public companies also ditch their CEOs publicly, and most don't recover to the same career level. You just don't hear about those stories much because they don't generate rage-clicks the same way another dozen articles about Jeff Bezos or Sam Altman will.
Ah. Like employees.
Namely, lay off an bunch of employees then talk about "difficult headwinds" or some such thing?
It takes a very convoluted definition of "work" to be able to say that CEOs aren't doing any work.
Being a CEO (a real one of a real company of more than a few people that has real customers) is a huge amount of work.
Didn't seem to be a question any AI proponent asked when they said that AI can do the job of a lawyer. Not that I disagree with you.
Or replace your entire business as a more efficient competitor?
Accountability is why CEOs exist.
https://www.cutoutsandcollectables.co.uk/product/elon-musk-a...
and it's smarter.
I'm sorry for the folks who are spreading those rumours. I believe - not only they are non-technical, they lack critical thinking as well. It's not their fault. Each time there comes a new revolutionary technical advancement, we are throwing them into trenches. Then, they are on their own to find and understand - what the hell we have thrown at them.
Back in the 80s and 90s, there were some politicians who were spreading similar rumours that Computers are going to take our jobs away. And, where we are now?