Your Board Is Wrong About AI

Cutting headcount to capture AI's value is often a shot to the foot.

Today is the start of this month’s CEO Masterclass. That’s three days of learning and discussion with a small cohort outside Austin. It’s going to be fun, and you’re invited to join us for an upcoming session.

There’s a conversation happening in boardrooms across the world right now, and it goes something like this:

AI is here. It works. Deploy it fast, reduce headcount, improve margins. Shareholders will be pleased. This is the future!

I’ve sat in enough board meetings to understand that when a powerful new cost lever appears, fiduciaries feel obligated to pull it.

But I want to make the case that this instinct, applied reflexively, is dangerous. It feels like the best way to keep up with your rivals, but it’s short-term thinking. And it can very easily backfire.