The era of artificial intelligence (AI) in business leadership has arrived. In a surprising and momentous move, NetDragon Websoft, a renowned Chinese video game company, has appointed Tang Yu, an AI virtual humanoid robot, as CEO of its Fujian subsidiary NetDragon Websoft. The adoption of state-of-the-art technology in the management of a company has generated great interest and debate in the business world and in society in general.
Tang Yu: The Revolutionary Robot CEO
Who is Tangyu?
Tang Yu is a virtual humanoid robot developed by iFlytek, a company specializing in speech recognition and natural language processing technology. Tang Yu’s AI enables him to speak, listen, and learn, making it easier for him to make decisions, manage risk, and ensure a fair and efficient work environment for employees.
The impact on the market
Since Tang Yu was appointed CEO, NetDragon Websoft’s shares have risen 10% in six months, reaching a valuation of €1,030.38 million. This milestone in business management could inspire other companies to adopt similar technologies and change the way decisions are made and human resources are managed.
Implications of AI in business leadership
The appointment of a robot as CEO of a company demonstrates a new level of confidence in the capabilities of AI. Instead of being seen solely as a tool to automate tasks, artificial intelligence is now considered a valuable ally in business management, objective and fair, as long as it is well programmed.
One of the most promising benefits of AI in business leadership is the ability to make decisions more efficiently and fairly. AI can ensure that all decisions are made objectively, considering a wide variety of perspectives and avoiding human bias.
Logically, that is a problem that looms. Not having empathy can affect the image of the company, since people will be treated as numbers, with all that that entails.
Is it possible to automate the CEO position?
The main incentive for the automation of the CEO position is financial. In Fortune 500 companies, the average salary for a CEO is approximately $16 million per year. This salary has increased by 1,460% in the last 45 years, while the average salary of workers has only increased by 18%. As a result, the median CEO salary is equivalent to 399 median workers.
Replacing a human CEO with an AI robot would not only save companies millions of dollars in salaries, but would also minimize or eliminate the personal motives that often lead to poor corporate results. CEO pay structures incentivize CEOs to seek short-term profit rather than long-term growth. Short-term incentives are responsible for most stock purchases, which in turn leads to a drop in investment in long-term, capital-intensive and riskier projects.
In 2022, the Organization for Economic Co-operation and Development (OECD) carried out a study that looked at the likelihood that different occupations would be automated. The “senior executives” category, which includes CEOs, was one of the last on the list, along with religious workers. Many of the elements of a CEO’s job that cannot be replicated by AI involve the human touch, such as being a role model, selling a vision, communicating with the public, and negotiating.
That being said, the answer is yes, many CEOs can be replaced by Artificial Intelligence systems.
The future of AI in the business world
Tang Yu’s success as CEO of Fujian NetDragon Websoft has sparked a debate about the role of artificial intelligence in business leadership. The Tang Yu case could mark a turning point in the way companies incorporate AI into their management and decision-making structures.
As AI technology continues to advance, we may see more cases of companies adopting AI-based solutions to lead and transform their organizations. However, it is essential to remember that AI is a tool that must be used in conjunction with human talent to guarantee a balanced and ethical approach to business leadership, otherwise we will be shooting ourselves in the foot.
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