Good morning. CFOs and CEOs are strategic partners—with many working more closely together than ever before—so understanding a chief executive’s perspective on emerging tech is vital for a finance chief to optimize decision-making.
A recent online Yale CEO Summit brought together top Fortune 500 CEOs to talk about how they’re reinventing their businesses around AI, clean energy, and other emerging technologies. In a new Fortune opinion piece, Jeffrey Sonnenfeld, a professor and the founder and president of the Yale Chief Executive Leadership Institute, and Steven Tian, director of research at the institute, shared viewpoints of some leading chief executives.
“Clearly, the insights shared with us by 200 top CEOs suggest that some of the most transformative uses of AI are taking place in plain sight at some of the world’s largest companies,” Sonnenfeld and Tian write. “These experienced non-tech titans embody the wisdom of Louis Pasteur regarding innovation in the field of practice, ‘Chance favors the mind that is prepared.’”
For example, Chipotle CEO Brian Niccol is focusing on using automation and AI to address employees’ pain points in prep work, such as frying chips and preparing avocados. Take, for instance, the fast-casual chain’s Chippy, a robot, which makes tortilla chips. Niccol views these robots as complementary to humans, not as replacements. “One of our biggest challenges is getting prep done on time for opening every day, especially if someone calls off in the morning and the team is short a person,” Niccol told the group.
And Niccol knows what he’s talking about. “Wrapping a burrito is an art,” he recently told Fortune in an interview. His behind-the-counter experiences gave him a deeper appreciation for the team members who prepare and serve meals, which helped generate $2.7 billion in first-quarter revenue for the company as it grew to over 3,300 locations in 48 states.
At the Yale CEO summit, the financial services industry also was represented. Brian Moynihan, CEO of Bank of America, discussed the firm’s proprietary “Erica,” a voice-activated banking assistant that’s had more than 2 billion customer interactions.
“First, we had to build a language which was recognized for banking, and then build a structure which works in a controlled, regulated environment, which is what financial services is,” Moynihan told the group. “Then, we had to think about how we could deliver our product to 60 million customers, keeping in mind that those customers would be asking specific questions related to a transaction in one of 60 million accounts, as a part of 110 different systems and types of transactions.” That’s no small feat.
For more fresh takes on tech from top CEOs, including Mary Barra of General Motors and her thoughts on electric vehicles, please read the complete report here.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Mark Harris, CFO at Heidrick & Struggles International, Inc. (Nasdaq: HSII) a global leadership advisory, has elected to depart the company to pursue other opportunities. Harris, who assumed the role in 2018, will remain with the company until August. Heidrick & Struggles has commenced a formal search for a new CFO.
Thomas DeByle was named CFO of AstroNova, Inc. (Nasdaq: ALOT), a data visualization technology provider. DeByle is replacing David S. Smith, who has retired. DeByle has more than 25 years of experience. He has been CFO for publicly held companies NN, Inc. and Standex International Corporation, as well as privately held Plastic Industries, Inc. He also has had senior finance roles at Doosan Infracore, Ingersoll Rand, Thermo King International, Enerpac, and Johnson Controls.
Big Deal
The 2024 Bank of America Private Bank Study of Wealthy Americans finds high-net-worth individuals believe U.S. stocks offer the best opportunities for growing assets, but that sentiment is less profound with younger investors. Wealthy millennials and Gen Zers are driving the demand for alternative investing strategies in areas such as real estate and private equity to digital assets and gold.
For example, 72% of investors ages 21-43 believe it's no longer possible to achieve above average investment returns by solely investing in traditional stocks and bonds, compared to just 28% of investors over the age of 44 that hold the same viewpoint.
“We're living through a period of great social, economic, and technological change alongside the greatest generational transfer of wealth in history,” Katy Knox, president of Bank of America Private Bank, said in a statement.
BofA also lists the three key trends from the report. The findings are based on the survey responses of 1,007 U.S. individuals aged 21 or older, with investable assets over $3 million.
Going deeper
Almost half (45%) of organizations moved deposits to large banks, seeking safety in systemically important financial institutions, according to the 2024 Association for Financial Professionals (AFP) Liquidity Survey. And 35% of organizations diversified their deposits among a greater number of banks.
In addition, 44% of treasury professionals surveyed report an increase in their organizations' cash holdings within the U.S. in the past 12 months (through March 2024). This is an increase from 36% in 2023. And 31% of respondents predict that their companies' current cash and short-term investment holdings will increase through the third quarter, according to AFP.
The findings are based on a survey of 239 treasury professionals from varying company sizes and industries.
Overheard
“We will pursue safe superintelligence in a straight shot, with one focus, one goal, and one product. We will do it through revolutionary breakthroughs.”
—Ilya Sutskever, OpenAI's cofounder and former chief scientist, said on Wednesday on X that he is starting a new company called Safe Superintelligence, focused on creating a safe AI environment.
