AI CEOs: Great at Strategy, Terrible at Surprises

Can AI really outthink a human CEO? Turns out, AI might be smarter — until something unexpected happens.

In an experiment conducted by the University of Cambridge, AI outperformed human CEOs in many areas, from profitability to product design. But there's a catch: AI got fired faster.

While AI excelled at tasks like optimizing prices and managing inventory, it struggled when faced with "black swan" events, like a pandemic. In those moments, human CEOs showed more adaptability and critical thinking - so there is still hope for human CEOs!

The experiment used a game designed by Cambridge researchers, where participants, including senior executives, acted as CEOs of a car company. AI’s data-driven decisions impressed the virtual board until a major market shift occurred, and it couldn't react quickly enough.

Although AI can outshine in routine tasks, its downfall came when it needed to think on its feet.

• AI excelled at routine decision-making and pattern recognition.
• It outperformed humans in optimizing car designs and profitability.
• But it failed to adapt to sudden market disruptions.

As AI gets smarter, how should businesses balance its impressive capabilities with human adaptability?

Read the full article on Entrepreneur.

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