Why CEOs need to create an AI doppelganger of their business

EY’s latest survey of CEOs has found that the most confident CEOs are embracing industry changes, including the implementation of AI.

In its latest CEO Outlook Pulse survey of 1,200 global executives, 38% of participants named emerging technologies including AI as the top disruptive force which will drive the most change in their industries over the next year.

A recent PwC survey had similar findings: out of over a thousand US executives surveyed, 73% use or plan to use traditional AI and GenAI.

Respondents to PwC’s US Responsible AI Survey were from public and private companies across industries including financial services, health and technology.

PwC said: “Companies slow to make AI an intrinsic part of their businesses may find themselves so far behind that it will be difficult to catch up.”

Creating a virtual doppelganger

CEOs should utilise AI to create a “virtual doppelganger” if they want to “improve their strategic and portfolio review processes and outcomes”, according to EY. 

The consultancy suggests that while digital twins exist in supply chains, CEOs should use AI to create a model of their whole business to predict what could happen in the future and help CEOs make better decisions about which assets to keep, buy and sell.

Twenty-seven per cent of CEOs said that leveraging emerging technologies to build an innovation edge and drive new ways of working is the most important element in converting these new technologies into business opportunities. 

EY’s survey found that CEOs who feel more confident about their company's future are more likely to want to use AI in big ways. 

Managing risks

The PwC report showed that although 73% of surveyed executives use or plan to use AI, only 58% had completed preliminary tests to assess its risks.

The data further showed that only 11% of executives reported having implemented fundamental tools for responsible AI use including data privacy, cybersecurity and third-party risk management.

Managing the risks of AI is a long-term effort, PwC said.

“It’s an ongoing commitment that needs to be woven into every step of developing, deploying, using and monitoring AI-based technologies.”

Workers feel overwhelmed

There is an additional risk in the use of AI for CEOs in the form of staff wellbeing. 

According to PwC’s latest Global Workforce Hopes and Fears Survey, over 50% of workers feel overwhelmed by changes happening in their businesses.

According to PwC, 44% of surveyed employees don’t understand the necessity of change, highlighting the importance of communication between CEOs and their workforce. 

Despite 61% of workers reporting that they have used GenAI at least once at work over the past year, far fewer are using it on a daily or weekly basis, the report said. 

The data showed that over 60% of both CEOs and their staff believe GenAI will increase efficiency in how employees spend their time over the next year. 

PwC said it is essential to “upskill everyone on GenAI regardless of industry or role” as it “can help prepare workers - which helps ensure that employees are not left behind as industries evolve”.

Crucially, said PwC, to maximise the benefits of GenAI, “leaders must empower their workforce to experiment and use it to rethink how work gets done”.

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