?The case for appointing AI as your next COO??

Innovation in artificial intelligence is now being integrated into most aspects of business operations. From chatbots to credit scoring, the technology is reshaping the way that business processes are constructed and managed. These AI systems are currently authorized at senior levels by human beings. This should strike us all as surprising, given the power of AI to make complex decisions at pace and with an accuracy humans find hard to match.

Indeed we have now arrived at a point where corporate boards should consider appointing an AI as chief operating officer.

This might seem futuristic, but the reality is that it could easily happen, and soon. Three key factors underpin this prediction : advances in AI technology, the demand for operational efficiency and the need for data-driven decision-making.

• First, the deployment of AI technology across multiple business functions has grown exponentially in recent years. Machine learning algorithms, natural language processing and advanced data analytics have reached levels of sophistication that were unimaginable a decade ago. AI systems can perform complex tasks that require equally expert and agile decision-making, strategic planning and even creative problem-solving. Humans are not equipped to do this at the scale that AI itself can.

• Second, corporations are today expected to find ways to streamline processes, reduce costs and improve productivity at an unparalleled rate. Stakeholders increasingly expect immediate action to be taken when new information is presented. An AI COO could anticipate, plan and execute the pace and scale of operational efficiency across a corporate ecosystem in ways that a human doing the same job could not match. Unlike human executives, AI systems can operate 24/7 without fatigue, process enormous amounts of information at lightning speed, and make data-driven decisions with precision. For instance, an AI COO could oversee supply chain logistics, ensuring that resources are allocated optimally and potential disruptions mitigated proactively.

• Third, AI’s superpower is its capacity for data-driven decision-making. Modern businesses generate vast quantities of data, and the ability to analyze this quickly and accurately is crucial. An AI COO would excel at this. For example, in areas such as marketing and sales, an AI COO could analyze full-cycle consumer behavior patterns, predicting future trends and developing strategies to match.

These are powerful arguments. But while AI could perform the task of a COO, it cannot and

should not (yet) be appointed to the role of chief executive. CEOs have a unique and complex position in corporate hierarchies. Human CEOs are still required to deal with people-related tasks, delivering intuition and empathy in an increasingly technology-driven world.

AI is also currently unequal to the task of taking on the nuanced decisions and trade-offs that are required at the regulatory level. Regulatory bodies and shareholders expect CEOs to be accountable for their decisions and actions. But AI systems operate on algorithms and data sets that may not always be as transparent or accurate as is desirable.

While the potential benefits of an AI COO are immense, there are of course challenges that must be addressed. Trust and acceptance from employees, shareholders and customers would be crucial. There would be a significant amount of initial skepticism to any such appointment that the (human-dominated) board of directors would need to address if they appointed an AI COO -?particularly when it comes to decisions on jobs and the transparency of operational decision-making. But an AI COO should become a reality in one of our largest corporations in the near future.

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