As a CEO, it’s not enough to just invest in AI.
Rodney Zemmel, global head of Blackstone’s investment team and head of the group that advises the firm’s 250 portfolio companies, shared strategies for how CEOs should leverage AI to get the most out of their investments. As of February of last year, these companies had combined annual revenue of $226 billion. According to a press release announcing Semmel’s hiring.
“This is something we’re all going to be working on for the rest of our professional careers,” Semmel said at a Blackstone CEO conference last month. He shared Blackstone’s five key questions for businesses to consider as they make the most of their AI investments.
Leaders need to ask whether they are demonstrating “top-down commitment.” This means that CEOs are not only committing resources to AI, but also personally investing in its deployment.
Companies should also consider whether they are taking a “business-first” approach rather than a “technology-first” approach. A company’s goals should not only integrate AI, but also relate to the specific business goals that AI can help achieve. For example, a company’s customer service director can focus on improving productivity and develop a plan jointly with the technology director, Semmel said.
It is also important to ensure a “clear ROI” as measured by EBITDA (earnings before interest, taxes, depreciation and amortization) and sales growth, he said.
“If you can’t see either of those things, it’s not worth your time,” Zemel told the CEOs in the audience.
Number four on Semmel’s list was thinking about “pathways to scale,” saying that many companies are too focused on piloting AI rather than expanding its use. Leaders need to focus their incentives and technology choices on scaling up, not just touting their best AI capabilities.
Finally, Zemmel says business leaders need to ask whether they are intentionally using data to create a competitive advantage, rather than simply keeping up with their competitors’ use of AI.
The question of AI benefits is plaguing companies large and small, as analysts pressed Big Tech leaders on the topic during recent earnings calls.
According to an October report from Boston Consulting Group, only 5% of more than 1,250 global companies surveyed in 2025 will be truly benefiting from AI. Despite significant investments in technology, around 60% saw little benefit. According to the report, sectors that incorporate AI into core functions such as sales and marketing, research and development, manufacturing, and IT will see significant value gains from 2024 to 2025.
