CEO's Role in AI Transformation

In the AI era, the role of business leaders is shifting from solely adopting technology to steering deeper organizational and people transformations. Michael Schreibmann, CEO of Star, emphasizes that the CEO's primary responsibility is to foster an adaptable organization and lead it personally.

Schreibmann terms this process "organizational recomposition," which involves restructuring the skills and capabilities of the existing workforce. The goal is not to downsize but to build a more capable company by leveraging current resources through upskilling and creating new roles. This may also involve addressing individuals who cannot adapt to new demands.

Key to successful transformation are company culture and the pace of change. Technology adoption alone is insufficient; the transformation must integrate with the company's values and practices while preserving its core identity. A pace that is too fast or lacks strategy can be costly and lead to failure. For instance, during the early days of cloud computing, success came to companies that understood the technology's impact on work methods, not just those that moved servers quickly.

Cost management in AI adoption presents a significant challenge. Without clear controls and monitoring, usage-based AI costs can escalate rapidly, as exemplified by an internal case. The CEO is responsible for balancing the adoption rate with costs. Meta, for example, has acknowledged mistakes in restructuring its organization around AI too quickly.

Ultimately, AI transformation is a personnel and strategic decision that cannot be delegated. The CEO must lead the process with calm and assurance regardless of circumstances, recognizing it as an ultra-marathon, not a sprint. Companies that successfully navigate this period will emerge significantly more capable, though their size may not necessarily change.