The 5 Questions CEOs are Asking About AI

Alex Singla, a senior partner and global leader of?QuantumBlack, AI by McKinsey, said that conversations with CEOs have shifted over the past several weeks. Gone are the requests for explanations of how the technology works — and whether it’s over-hyped. Now, Singla says, five questions dominate:

• What are the specific use cases?
• How do I get started?
• What are the risks I need to manage?
• What are the implications for present and future employees?
• How do I learn fast?

There has been an increase in acceptance and in the inevitability that AI will play a significant role in shaping the future of business.

The question has changed from “Will I use AI?”, to “When will I use AI?”.

So, what CEOs want to know is not how does the technology work, but rather how can it work for them. And to do so at speed.

Your ability as a CEO or C-suite executive, to understand how to use and leverage AI, will significantly affect and improve your decision-making, understanding customers and markets, making better products, making better services, improving operations, and monetizing data. Yes, AI is and will be disruptive.

Let’s look at the questions…

1.???What are the specific use cases?

Your specific use cases will depend on your business and the context of how and where you are operating. The key question is to identify a number of key AI initiatives to pilot, implement, and then scale.

So, how do you do this?

Well, firstly just because AI can deliver significant value does not make it the panacea for all your problems. It might even be the wrong thing. It’s liking saying, “Well, if AI is the answer, then what is the question?”. This may have worked in times of slow change, but not now.

Instead, to uncover new opportunities and growth you need to ask, “more beautiful questions” (thank you, Eric Ries). And the first is this:

"This is the problem I have, what technology should I use to solve it? “

Asking this question will help you uncover those initiatives which you can pilot, starting small, realise or create value from, and then scale up quickly.

2.???How do I get started?

As Benjamin Franklin said, “Take time for all things; in great makes great waste”. As a CEO you are under pressure to move fast and decisively to stay ahead of the game. AI can be a powerful multiplier for you, but only if you understand three things.

1. What is your business strategy, and what you are looking to achieve – why, how, and when?
2. What does your AI strategy have to look like to support and enable your business strategy?
3. What are the key building blocks you need to integrate and implement AI into your business, and how, so it delivers what you are looking for?

Only when you can answer all three questions can you start the work. To jumpstart this process, and to identify, leverage, and use the key building blocks to integrate and implement AI into your business, then find out how the AI Business Navigator can work for you at

3.???What are the risks I need to manage?

AI does not come without risks and the rate at which it is developing and changing can create unforeseen risks or downsides. There are a number of risks that the C-suite need to be aware of, these include:

Bias in AI Decision-Making

AI systems learn from the data they are trained on. If this data contains biases, the AI system can also develop biased decision-making. This can lead to unfair outcomes and potentially serious legal and reputational risks. For example, Amazon had to scrap an AI recruitment tool because it was found to be biased against women. The tool was trained on resumes submitted to Amazon over a 10-year period, most of which came from men, leading the system to favour male candidates.

Data Privacy and Security

AI systems often require large amounts of data to function effectively. This can pose significant privacy and security risks, particularly if sensitive information is involved. In 2017, the personal data of over 143 million Equifax customers was exposed in a cyberattack. The company's failure to update a software patch led to the breach, highlighting the importance of robust data security measures in AI systems.

Lack of Transparency (Black Box Problem)

AI systems, particularly those based on deep learning, can be incredibly complex and difficult to understand. This lack of transparency can make it hard to identify why an AI system made a particular decision, which can be problematic in regulated industries. For instance, in healthcare, an AI system might recommend a particular treatment without providing a clear rationale, which could lead to patient harm and legal issues. A real-life example of this is when IBM's Watson gave unsafe and incorrect treatment recommendations for cancer patients. The system was trained on hypothetical scenarios rather than real patient data, leading to inaccurate results.

Dependence on AI and Automation

Over-reliance on AI systems can lead to a lack of human oversight and the potential for significant errors if the AI system fails or behaves unexpectedly. In 2010, the "Flash Crash" occurred in the US stock market, where the Dow Jones Industrial Average plunged about 1000 points within minutes. This was largely attributed to high-frequency trading algorithms responding to an unusually large sell order.

Job Displacement

While AI can increase efficiency and productivity, it can also lead to job displacement as tasks previously performed by humans are automated. A real-life example is the introduction of self-checkout systems in supermarkets, which has led to fewer cashier jobs. While these systems can improve efficiency, they also raise concerns about job losses and the need for retraining.

Risk of Misuse

AI technology can be misused by malicious actors. For example, deepfake technology, which uses AI to create hyper-realistic but fake videos, can be used to spread misinformation or defame individuals. A notable case involved a deepfake video of Facebook CEO Mark Zuckerberg, which was created to demonstrate the potential dangers of this technology.

In conclusion, while AI offers significant potential benefits, it's crucial to be aware of and manage these risks effectively. This involves careful data management, regular system audits, maintaining human oversight, and considering the ethical and societal implications of AI use.

4.???What are the implications for current and future employees?

The ability to retain and use employees productively and profitably is a key priority for the C-suite. The PWC CEO Survey 2023, highlighted that the top 3 areas where businesses are looking to invest include:

1.??????Upskilling the company’s workforce in priority areas, 86%

2.??????Automating processes and systems,78%

3.??????Deploying technology (cloud, AI, and other technologies), 72%

AI is the key enabler for this, helping to empower employees, free them to work on more creative and valuable work by removing mundane tasks, and improving productivity.

This means having employees who are AI literate is critical, and who understand how to use it effectively and responsibly. With this, there is the need to manage how AI is introduced and implemented, to ensure employees are engaged, and that changes in their roles resulting from AI are managed effectively.

As AI develops, some tasks and even roles will be lost to AI, other tasks and roles will be augmented, and new tasks and roles will develop. A recent report from Goldman Sachs (March 2023) estimates that 300 million jobs could be lost or diminished by AI by 2030, and global GDP could increase in the same period by 7% ($7 trillion) with the advent of AI. Office administrative support, legal, architecture and engineering, business and financial operations, management, sales, healthcare, and art and design are some sectors that will be impacted by automation. However, it does not allow for the new jobs and roles that will be created.

The World Economic Forum’s Future of Jobs Report 2023, released in May, assesses the impact of macro trends, as well as technological change on jobs and skills over the next five years. The report finds that nearly a quarter of all jobs (23%) globally will change in the next five years. Across 45 economies, covering 673 million workers, 69 million new jobs are expected to be created and 83 million to be eliminated, a net decrease of 14 million jobs, or 2% of current employment.?

The C-suite needs to have a clear talent strategy in place, for now and in the future, which anticipates how AI will change, and what its impact will be for your people and the business. You need to identify where, when, and how roles and tasks will change, the skills that people will need to remain productive and competitive, and how to attract, retain and develop the people in advance of your needs.

AI literacy, the ability to understand and use AI responsibly and effectively, is key. In a recent report from BCG (“AI at work: what people are saying”, June 2023), 86% of people believe that they will need upskilling to address how AI will change their jobs. Yet only 14% of front-line employees and 44% of leaders say that they have already gone through upskilling. This creates a serious skill deficit which can result in failing to capture the key benefits of AI including improving your decision-making, understanding customers and markets, making better products, making better services, improving operations, and monetizing data.

With AI literacy, skills, and expertise in short supply, the sooner you develop the means by which to grow and develop the talent and skills you need, the more resilient and competitive you will become.

5.???How do I learn fast?

The question here is not how do I do fast, but how do I learn fast.

Learning has no value if you cannot apply it. Here, blended experiential learning is the fastest, and most effective way to help employees develop their AI literacy and understanding using a mix of face-to-face and online learning that can be customized to the individual, and leverage the collective wisdom of the group. This helps people to understand the importance of communication, collaboration, critical thinking, and creativity which underpin how to use AI effectively and responsibly.

Learning and applying what has been learned embeds it into the day-to-day work, and lessons are learned from what has gone well and what needs improving. Employees need to be on a journey of continuous learning, to drive continuous improvement in the business, and this needs to be driven and enabled from the C-suite. Using fast project teams and agile methods helps to drive this.

Employees have to understand what being AI literate means first, and then experientially develop their AI skills by implementing multiple pilot use cases across the business. Using cross-functional project teams allows people with the relevant technical skills, business expertise, and translation specialists (those able to interpret and communicate business needs and requirements so that these are understood in the AI and technological solutions developed, and vice-versa).

Once you have a clear business strategy in place and an AI strategy that is aligned with it, you can then develop the talent strategy and the key building blocks for it. with the skills and development plans that need to be in place. To find out more on this, discover how the AI Business Navigator can work for you.

Next Steps:

Discover and identify the 9 key building blocks for integrating and implementing AI into your business by completing the AI Business Navigator diagnostic.

This free, online tool will give you a custom report identifying how strong or weak you are on the 9 drivers, including your 3 strongest drivers, and your 3 drivers needing improvement, helping you to begin to develop your AI strategy. This enables you to leverage AI effectively, productively, and competitively.

And, if you want to get there faster, then book a 15-minute no-obligation AI Strategy call with me. Click here to find a convenient time. In this:

• We’ll see if or how we can help.
• We’ll get super clear on where you are right now, and where you want to be.
• You’ll understand the 3 key AI challenges in your business and get clarity on your next steps.
• And finally, you’re going to leave inspired and motivated regardless of what we decide to do next.

Andrew Cooke, Growth & Profit Solutions

[email protected]

+61 (0)401 842 673

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