Could generative AI step into the C-suite and even replace the CEO? At first glance, the notion of AI replacing a CEO may seem as far-fetched as the successful promotion of a junior analyst to lead the boardroom. After all, AI is prone to significant errors, such as “hallucinations” — generating incorrect or misleading information — and a tendency to lose track of a task mid-process. These are not qualities typically associated with effective leadership, especially in a role that demands balancing the interests of multiple stakeholders, analyzing historical trends, detecting subtle changes in a market, and making strategic decisions that shape the future of a company. Nonetheless, generative AI is already reshaping industries that require both precision and creativity. For instance, AlphaFold has revolutionized protein folding with unprecedented accuracy, transforming the field of biophysics, while OpenAI’s Codex can generate entire software programs from simple human instructions, advancing the capabilities of software engineering. These are complex, difficult assignments that seemed well beyond AI’s ability only a few years ago. So, why would undertaking a CEO role be out of reach? To date, there has been little to no empirical data on how AI would perform as a CEO in real-world scenarios, particularly when compared to human decision-making under similar conditions. The strengths and weaknesses of AI will only be fully revealed when it is tested across a wide range of situations. We have taken a first step in this direction with a large-scale, real-world experiment, opening the door to deeper exploration of AI’s potential role and impact within the C-Suite.

Full study : Generative AI has demonstrated the potential to significantly outperform human CEOs in strategic decision-making by excelling in data-driven tasks like product design and market optimization.