A PE-owned e-commerce company is looking for a CEO. 90 % of customer support is to be replaced by an AI chatbot. The investor says: “Eventually everyone will be doing this.” It’s an ambitious goal.
TALENTspy solves complex appointment problems. We’re shaped by private equity: high standards, time pressure, quality.
So what does the right candidate look like?
The days when software architecture, IT projects and digital customer support were entirely the CIO’s or CDO’s job are over. Weak software competence is now an obstacle to success as a CEO.
In other words, a CEO doesn’t just have to develop the strategy. Today, they often also have to judge whether a software solution works, whether the vendor keeps its promises and whether processes can sensibly be digitised. In mid-sized companies especially, which often have no dedicated IT executive, that responsibility lands directly with the CEO or the leadership team.
Take a question like this: “Should we replace our after-sales customer centre in Germany, which supports products that need a lot of explanation, with an AI-based software solution?” In that scenario, the CEO and the team have to weigh up whether the software can really deliver what’s promised, and what we and our customers expect. And whether it justifies the risks, costs and implementation effort.
In future, CEOs will have to deal with these key issues, and they can’t be delegated to the CIO(!):
- Software: what’s the promise and what’s the likely reality? Is replacing people with software realistic in my business model (dialogue skills, need for explanation, escalation)?
- What does it do to customer and employee satisfaction in my company? Studies show devastating figures, in some cases below 40 % customer satisfaction with AI chatbot service.
- How will the transition work: hybrid, human plus AI, or fully automated?
- What are the risks, for example in compliance, dependence on legacy systems, data quality or resistance to change?
We wouldn’t go so far as to say a CEO must be able to judge all of this from their own expertise and track record. But they must have it on their radar. That’s far easier said than done. We’re increasingly raising these topics in selection processes, sometimes with astonishing results.
Where have you come across these issues? Do you see them as equally important?
