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AI vs. Humans or AI + Humans: Reflections on HumanX

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For an event with “Human” in the name, the forecast for humans was questionable at this week’s inaugural HumanX AI conference in Las Vegas.

Walking onto the exhibit floor on Day 1, you couldn’t help but notice a booth with a huge sign of a young woman that shouted – “Stop Hiring Humans”.

I hustled down to the fourth floor to attend a working session where the two consultants presenting said if you adopted Gen AI and followed their plan, you can begin firing knowledge workers in six months and managers in a year.

Next up on center stage, the speaker opened, “The year 2025 is going to be the explosion of AI agents and agentic AI!”  Who needs humans if you have AI agents, right?

Moving over to the track stage, a panel of two venture capitalists had one saying to the other: “Lawyers, accountants—so many knowledge workers are going to be automated out of a job, and they don’t even see it coming. The history of technological revolutions tells us this will be nasty. People will get angry. And when they do, pitchforks start coming out.”

And the other VC guy jumped in, “Eventually, there won’t be a single task where humans outperform AI or robots. Just let that sink in. We’re heading into a really, really rough patch where things just aren’t going to work out very well for humanity.”

Not a great outlook for humans. “Are humans really going to be expendable?” I wondered.

Next thought: “It’s gotta be 5 o’clock somewhere – happy hour.” But it was only noon — and even in Vegas, that’s a bit early for a cocktail. Though after those cheerful predictions, I was tempted.

Are these stark warnings for real, or are they hype?

I think mostly hype, but there is a seed of truth. Three days of AI immersion in Las Vegas and here are my takeaways:

  1. There is no doubt – the AI revolution is now. Gen AI is for real, it is getting better and advancing rapidly. It’s not going away.
  2. Gen AI is reshaping industries, companies and jobs at an unprecedented pace.
  3. Tech companies are pushing AI agents to drive their revenue and valuations. Each of these companies is hyper focused on winning the AI prize. Doesn’t matter that most brick-and-mortar companies are nowhere close to being ready to adopt their agentic and automation tools. As one tech CEO panelist remarked, “This is an arms race, let’s be honest, and we’re all arms dealers.”
  4. AI anxiety is high at companies among humans. Mostly because leaders haven’t figured out their AI strategy and communicated it. Also, leaders and knowledge workers aren’t receiving the upskilling and training that’s necessary for Gen AI adoption and proficiency. Without training, support and encouragement, your humans will assume the worst.
  5. If you are a CEO and not leading your company to rapidly adopt Gen AI, you are falling dangerously behind. Get yourself and your leadership trained on using Gen AI responsibly and lean into it. As you adopt it and become proficient, you’ll see endless possibilities.
  6. See Gen AI as a catalyst for human potential. An enabler of humans — not a replacement. Encourage your people to become Gen AI power users. Be the role model and become one yourself.
  7. No one said unequivocally (that I heard) AI agents are ready for prime time — yet. You need humans. Their insight, empathy, experience and judgment still surpass AI’s abilities.
  8. Encourage your humans to use Gen AI to solve their biggest problems. To handle the parts of their job they don’t like. And free up more time for work they do like — creativity, connecting, and purposeful work.
  9. Get trained. Use it for 30 minutes a day for 30 days. Shoot for a 20% increase in personal productivity in a month. You’ll develop a valuable new habit and transform the way you work.
  10. A growth mindset is essential. Continuous learning and reinvention is a must. Forever. It’s the requirement to thrive in today and tomorrow’s world.

Reflecting on the week at HumanX, I’m excited about AI, but I’m even more bullish about the opportunities it will bring humans who seize this transformative technology. In this race, the AI + Humans will prevail. That’s a combination to stay relevant and thrive. That’s what I’m betting on!

 

If you’re feeling overwhelmed about where to start on your AI journey or how to develop an effective AI strategy for your company, reach out. You might also find practical guidance in my book, The CEO’s AI Playbook: A Human-First Approach for Leveraging Gen AI to Create Massive Value, where you’ll discover how CEOs learn, apply, deploy, evolve and lead AI. The future belongs to those who embrace this technology, not fear it. Let’s navigate this transformation together.

The CEO’s AI Playbook: A Human-First Approach for Leveraging Gen AI to Create Massive Value

 

Embracing Gen AI: Which Type of CEO Are You?

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From Skeptics to Visionaries—Finding Your Path in the Age of AI

As we stand on the edge of a technological revolution, it’s fascinating to witness how different CEOs are responding to the advent of Generative AI (Gen AI). As a horizontal technology that has transformative potential across the entire business, CEOs must seize the opportunity and learn, apply, deploy and lead Gen AI. From the cautious skeptics to the visionary pioneers, five distinct types of CEOs are emerging in this space. Let’s explore these categories, and I invite you to reflect on which one best describes you – or which one you aspire to be.

Exhibit from The CEO’s AI Playbook: A Human-First Approach for Leveraging Gen AI to Create Massive Value

The Denier/Deep Skeptic

The Denier, or Deep Skeptic, is the CEO who dismisses Gen AI as just another passing trend. They may think it’s all hype, see the risks as outweighing the rewards, or simply lack the time and energy to dive deeper into the technology. If this sounds familiar, here’s a challenge for you: head over to a free LLM platform like ChatGPT or Perplexity and type in this prompt:

“Give me the pros and cons of investing time to learn Gen AI. I am a CEO of (company name), operating in (industry), with annual sales of (amount) and (number) employees. I’m skeptical about dedicating time to this technology. Can you provide me with arguments to reconsider?”

Take a moment to reflect on the AI’s response. Still skeptical? Gen AI offers countless opportunities that can’t be ignored – even for the most hesitant CEOs.

The Fence Sitters

Next, we have the Fence Sitters. These are the CEOs who are intrigued by the possibilities of Gen AI but are unsure how to implement it in their companies. They may experiment with Gen AI in their personal workflows but haven’t yet figured out how to scale it for the company. The issue is particularly prevalent in regulated industries like medical technology and financial services, where concerns about risks, privacy, and regulatory compliance keep these CEOs on the sidelines. Rather than take a responsible, pro-active approach to mitigating the risks, they are frozen in a do-nothing mode, lacking the courage and vision to move forward.

While the Fence Sitters hesitate, their competitors are already gaining traction with Gen AI, reaping the rewards of early adoption. It’s time to stop waiting for the technology to “improve” and start taking calculated risks to unlock its potential.

The Dabblers

Then, we have the Dabblers. These CEOs understand the value of Gen AI but only engage with it sporadically. They’ve entered the discovery phase but haven’t moved beyond it. Without clear goals or expectations for use, they allow employees to experiment with their own AI tools, creating a fragmented approach. The problem with this approach is that it’s inconsistent and lacks the focus and intensity needed to capitalize on Gen AI’s full potential.

Dabbling is like bringing a pocketknife to a sword fight. In a game where your competitors are using AI intentionally and strategically, your half-hearted effort won’t be enough to win.

The Cost Cutters

The Cost Cutters are the CEOs who view Gen AI primarily as a tool for reducing expenses. Their focus is on slashing costs, eliminating positions, and cutting headcount. While this may produce short-term financial savings, it will lead to disengagement among employees and a toxic company culture. The real power of Gen AI lies not just in cost reduction but in productivity enhancement, innovation, and employee empowerment. When CEOs prioritize cutting corners, they risk missing the longer-term strategic benefits that AI offers.

Your workforce is your greatest asset. When leveraging Gen AI, focus on enhancing their capabilities, not just trimming their numbers.

The Human-First, AI-Augmented Leaders

Finally, we have the Human-First, AI-Augmented leaders. These CEOs understand that Gen AI is not a replacement for human talent, but an enabler of it. They deploy AI to create value and enhance both employee experiences, customer experiences and business outcomes. These leaders are committed to ongoing learning, both for themselves and their teams. They use Gen AI strategically to empower employees, reduce mundane tasks, and increase productivity, all while fostering a positive work culture.

They understand the opportunity trifecta: better jobs for employees, enhanced customer experiences, and improved business performance. These CEOs don’t just see AI as a tool—they see it as a partner in their mission to create a thriving, innovative company.

Which Type of CEO Are You?

Now, the question is: which type of CEO describes you today? More importantly, which type do you want to be?

The reality is that the age of Gen AI is upon us. CEOs who embrace it and lead their companies with vision will set themselves up for long-term success. Those who hesitate or resist will risk falling behind and potentially worse.

As Marc Benioff, CEO of Salesforce, said: “Every CEO and company knows they need to make major investments in AI right now. This is the single most important moment in the history of the technology industry.” It’s clear: Gen AI isn’t just a trend; it’s a seismic shift in how businesses operate and compete. CEOs who act decisively now will reap the rewards, while those who delay will find themselves struggling to catch up.

The Consequences of Inaction

The cost of inaction is steep. If you don’t embrace Gen AI, and your competitors do, what will than mean for your business? Your top talent may seek opportunities elsewhere, attracted by competitors who are already integrating this technology. Your customers might be drawn to AI-enhanced products, leaving your offerings in the dust. And investors may start questioning your ability to compete in a rapidly changing world. Your #1 job as CEO is to create a more valuable enterprise. If you aren’t leveraging the #1 value creation technology available, you are failing to do your job.

But here’s the good news: you have the power to steer your company into this new era. You can be the visionary who seizes the Gen AI opportunity, leads your company to new heights, and drives value for shareholders, employees, and customers. Do your job. Embrace Gen AI and create massive value.

In just a few years, we will look back and see two types of leaders: those who embraced Gen AI and those who didn’t. Which one will you be?

For More Information:

The CEO’s AI Playbook: A Human-First Approach for Leveraging Gen AI to Create Massive Value

Seizing the Gen AI Opportunity: Insights from the 2024 IBM CEO Study

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CEOs Must Strike a Balance Between Caution and Courage to Harness the Power of Gen AI

CEOs who seek to position their companies to thrive in the years ahead should review the findings of the recently released 2024 IBM CEO Study and take appropriate action – particularly with seizing the immense opportunity Generative AI offers in building a competitive advantage.

This is the 29th annual release of the survey, which was taken by over 2,500 CEOs worldwide, reveals that Gen AI presents an “opportunity paradox” – it can drive immense productivity gains and uncover new avenues for growth, but also poses significant risks if not managed properly. CEOs must act with both caution and courage, accelerating transformation while uniting teams to deliver results responsibly.

A key challenge is that CEOs’ workforce isn’t as prepared for the Gen AI era as they believe. Significant retraining and reskilling will be needed, with 35% of the workforce requiring upskilling in the next 3 years. CEOs must accurately assess skills gaps and look to forward-thinking talent to redefine how work is done.

Gen AI also enables hyper-personalized products and experiences, but the customer isn’t always right about what they will want in the future. While co-creating with customers, companies must still innovate beyond current sentiment while using customer data ethically and transparently to maintain trust.

As strategic priorities shift, CEOs must be unsentimental and selective about partnerships, prioritizing expertise over long-standing relationships. Healthy debate among the C-suite is also crucial; CEOs must encourage diverse perspectives while providing clear rules of engagement for constructive conflict.

Internally, employees often resist the change Gen AI brings. CEOs must inspire adoption by communicating its value, providing ample training, and cultivating a culture of innovation. Importantly, there are no technology short-cuts – digital infrastructure investments must align with long-term business strategies, not just exciting new use cases, to provide a foundation for growth.

The study identified a group of top-performing CEOs whose organizations excel in areas like digital infrastructure, innovation, talent development, ecosystem partnerships and strategy execution. These leaders provide a model for the capabilities required to fully harness Gen AI.

Looking ahead, CEOs have ambitious plans for the technology. While less than half are focused on Gen AI pilots today, 49% expect to leverage it for growth by 2026. This will require taking calculated risks and leaps of faith to avoid being left behind.

Ultimately, successfully adopting Gen AI demands that CEOs confront difficult realities head-on – from talent gaps to legacy technologies to resistance to change. By taking an eyes-wide-open approach while moving with agility and speed, CEOs can seize the Gen AI opportunity and lead their organizations to outperform.

Here are the top takeaways and findings from the report, courtesy of ChatGPT4o.

The Top 10 Takeaways from the IBM 2024 CEO Study are:

  1. Gen AI has the potential to drive unprecedented productivity gains and reveal new growth opportunities, but also poses significant risks. CEOs must strike the right balance between caution and courage while moving faster than ever.
  2. The CEO’s team isn’t as strong as they think when it comes to leveraging Gen AI. Significant workforce retraining and reskilling will be required, and CEOs need to accurately assess skills gaps.
  3. Customers don’t always know what they want. Gen AI enables hyper-personalized products and experiences, but companies must use customer data ethically and be transparent to maintain trust.
  4. CEOs must be selective about partnerships, prioritizing expertise over sentimentality. Changing strategic priorities demand reconfiguring core business partnerships.
  5. Healthy debate among the C-suite is crucial for good decision-making. CEOs must set ground rules to keep conflict constructive and leverage the diverse expertise of their leadership team.
  6. Employees are resistant to change brought by Gen AI. CEOs must help them see its value, provide training, and create a culture that inspires adoption of new technologies.
  7. There are no technology short-cuts. CEOs must invest in digital infrastructure aligned with long-term business strategies, not just exciting new use cases.
  8. Top-performing CEOs’ organizations have more effective digital infrastructure, innovation, talent development, ecosystem partnerships and strategy execution compared to peers.
  9. Over the next few years, CEOs will increasingly leverage Gen AI to drive efficiency and growth. By 2025, over half expect to use it for expansion.
  10. Taking risks with Gen AI is necessary to remain competitive. CEOs on a “burning platform” must take a leap of faith while building organizational agility to pivot as priorities shift.

The Top 10 Findings from the IBM 2024 CEO Study are:

  1. 67% of CEOs say the potential productivity gains from automation are so great that they must accept significant risk to stay competitive.
  2. 62% of CEOs say they will take more risk than the competition to maintain their competitive edge.
  3. 72% of top-performing CEOs agree that competitive advantage depends on who has the most advanced Gen AI.
  4. 65% of CEOs say their organization’s success is directly tied to the quality of collaboration between finance and technology functions.
  5. 64% of CEOs say their organization must take advantage of technologies that are changing faster than employees can adapt.
  6. 61% of CEOs say they’re pushing their organization to adopt Gen AI more quickly than some people are comfortable with.
  7. 59% of CEOs say they aren’t willing to sacrifice operational efficiency today to drive greater innovation.
  8. 55% of CEOs say changing strategic priorities demand reconfiguring core business partnerships.
  9. 51% of CEOs are hiring for Gen AI-related roles that didn’t exist last year.
  10. 49% of CEOs expect to use Gen AI to drive growth by 2026, up from less than half focusing on generative AI pilots today.

The findings of this study underscore the urgency for CEOs to act swiftly. Priority steps include implementing Gen AI training for knowledge workers and leveraging this technology to optimize individual workflows and company-wide processes. CEOs should then harness Gen AI to drive key performance indicators such as revenue growth, cost management, margin expansion, and enhanced customer and employee experiences. As their expertise grows, CEOs will spearhead efforts to utilize Gen AI in developing transformative products, services, and business models, while simultaneously reshaping organizational operations and culture. The imperative is clear: those who most effectively deploy this critical technology will emerge as the winners of the future.

 

Why Portfolio Companies Must Embrace the Gen AI Revolution — Now!

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New Bain Global Private Equity Report Sees Gen AI is a Game-Technology for Portfolio Companies in Value Creation

Capturing the immense power of Generative AI to drive value creation is on the agenda of most private equity-backed CEOs. As the transformative force of our time, Gen AI is not just redefining the nature of work; it’s reshaping entire industries and disrupting business as we know it. Sooner or later, this revolutionary technology will impact every industry, every company, and the job of every knowledge worker.

The urgency to lean into Gen AI is resoundingly affirmed in the recently released Bain Global Private Equity Report 2024. In the chapter Harnessing Generative AI in Private Equity, Bain observes that Gen AI is asserting itself as a game-changing technology across the global economic landscape. They envision it being rapidly deployed in portfolio companies to drive:

Operational efficiency. AI tools enable portfolio companies to streamline operations, automate routine tasks, and optimize labor use, leading to significant cost savings and operational efficiency gains that directly impact the bottom line.

Talent acquisition and optimization. Gen AI can augment the capabilities of existing staff, empowering humans to focus on higher-value activities while AI handles more routine tasks, thereby optimizing talent utilization and unlocking hidden potential.

Market competitiveness. Early adopters of Gen AI can seize a powerful competitive edge in the market by enabling innovations that outpace rivals and disrupt traditional business models, positioning themselves as industry leaders.

Improved decision making. Gen AI turbocharges decision-making by providing comprehensive data analysis that uncovers insights not immediately apparent through conventional methods, enabling leaders to make smarter, more informed choices.

Customer Interaction. AI can revolutionize customer service and engagement through more personalized and responsive communication tools, driving customer satisfaction and retention rates to new heights.

Value Creation. Implementing AI-driven solutions can directly contribute to value creation by enhancing product offerings, improving service delivery, and creating entirely new revenue streams that propel growth.

The CEOs of PE-backed portfolio companies that I coach and consult are leaning into Gen AI with fervor. While the potential benefits touted in the Bain report are undeniably attractive, they don’t materialize automatically (a point Bain glossed over). To make those transformative strides requires significant training, practice, and widespread adoption of Gen AI across your entire organization.

When I train leaders on Gen AI, I introduce them to the Gen AI Essentials Pathway, a powerful learning protocol that emphasizes the foundational elements necessary to build Gen AI literacy, proficiency, and adoption skills. It encompasses five steps:

In the training, all knowledge workers (including the CEO and C-suite) discover how to select and use large language models (LLMs) and how to craft prompts that elicit excellent outputs. They learn the three powerful personas they can leverage to harness the full potential of Gen AI: as an assistant, a strategist, and a creative force. They practice writing targeted prompts that deliver exceptional results. They are introduced to fifteen high-impact use cases and corresponding prompts that are invaluable for leaders and managers. Then, they conduct workflow audits of their critical objectives and tasks to identify use cases where Gen AI can be applied to maximize brainpower and human potential.

Before embarking on any task, they start by asking, “Can Gen AI help me with this?” As the training concludes, they are invited to participate in the 30-Day Challenge. I share examples of individuals who have dedicated just 30 minutes a day to Gen AI for 30 days, developing a new, indispensable habit that results in significant productivity gains, time savings, and better decision-making. A goal of a 20% productivity increase is established as a starting point.

We reconvene a month later to share our learnings and breakthroughs. Many participants report productivity improvements that exceed the initial 20% target. We dive into the use cases they are applying, the AI tools they’ve experimented with, the remarkable results they are achieving, and the exciting next steps on their Gen AI journey. Suggestions and best practices are freely shared, all in a spirit of discovery, learning, and leaning into this extraordinary new superpower. We discuss pain points and opportunities across the company where Gen AI can make a transformative impact, and then prioritize high-potential projects. They receive additional training, collaborating to apply Gen AI in innovative ways. Then we rinse and repeat, building their Gen AI capability that puts them on the path to delivering the game-changing benefits described by Bain.

If you want to get your people excited about Gen AI, you have to answer their first question: “What’s in it for me? “ When they see how Gen AI can help in their personal workflows to save time, help them make better decisions and do higher quality work, then they’ll be ready to tackle the company’s opportunities and challenges. Start by showing them how Gen AI can make their lives better.

A soldier isn’t forged without the crucible of bootcamp. A major league baseball player doesn’t reach the pinnacle of their sport without the rigors of spring training. Similarly, your team members won’t become Gen AI powerhouses without proper training and support. If you truly want to reap the rewards that Gen AI promises, invest in providing everyone with a solid foundation through comprehensive training and a robust learning process. Fail to do so, and you risk being left in the dust by competitors who are seizing this once-in-a-generation opportunity.

The Gen AI revolution is here, and the time to act is now. Portfolio companies that embrace this transformative technology and invest in building their Gen AI capabilities will be the ones that thrive in the new era of business. Don’t let this moment pass you by. Lean into the power of Gen AI, train your team to harness its full potential, and watch as your company soars to new heights of efficiency, competitiveness, and value creation. The future belongs to those who dare to embrace it — will you be among them?