MathJax

MathJax

Tuesday, November 1, 2011

CEO's vs. AI's

I read a bit online about the CEO of netflix Reed Hastings being seduced by the high share price of his firm into a number of ruinous mis-calculations, and I thought, that's right, I remember thinking that AI's would probably be better than human CEO's in most circumstances. An AI would most likely not be another Steve Jobs, creating a couple of new industries, and replacing the PC with a device you can put in your pocket and make phone calls on, but most companies aren't like Apple. The average company, by my thinking, exists in sort of a steady state. It can probably be described by a set of rules. When this gets too much, sell this and buy that... When expenses are too high, lay-off people, and focus on the most profitable products... And so on. These are the sort of tasks that AI's excel at. The sudden blooming or crash of the share price won't bamboozle an AI at all. It will simply be another factor that can be optimized according to the AI's rule set. In the true excellence of the modern world, it should be possible to lay-off most CEO's and simply return value to the share holders - something CEO's are always claiming to do when they undertake some activity that would lead to you or I being prosecuted for fraud.

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