Good morning. OpenAI released ChatGPT in 2022 and, in doing so, propelled generative AI to the forefront of our current technological era. The firm’s leadership culture, though, hasn’t evolved as quickly as its tech stack—and executive turnover is high.
That includes chief technology officer Mira Murati, who announced her resignation on Wednesday. Last year, when CEO Sam Altman was ousted in a boardroom coup that wound up lasting five days, Murati served as interim CEO. Meanwhile, OpenAI’s research chief Bob McGrew and Barret Zoph, a research vice president, are also departing the company.
OpenAI, with roots as a nonprofit research institute that also sells commercial products, proclaims its goal is “building safe and beneficial artificial general intelligence for the benefit of humanity.” As ChatGPT skyrocketed in popularity, Microsoft has invested about $13 billion in the startup.
But key executives are making their departures at a time when OpenAI’s board is considering converting into a for-profit corporation accountable to shareholders, Fortune reported. The company is reportedly working on a $6.5 billion funding round at a valuation of $150 billion.
One executive staying on is Sarah Friar, the CFO who joined OpenAI in June. Friar was previously CEO of Nextdoor, a hyperlocal social networking service for neighborhoods. She served as CFO of Square and oversaw its IPO. Friar has also worked at Goldman Sachs, McKinsey, and Salesforce.
AI and community connections
In addition to leading finance, Friar seeks to keep human connection, similar to what she facilitated at Nextdoor, at the forefront of OpenAI. She is part of an ongoing dialogue on technology, governance, and democracy as co-chair of the Stanford Digital Economy Lab’s Advisory Group.
The lab announced on Tuesday the debut of The Digitalist Papers, a collection of essays exploring AI and digital technologies’ impact on U.S. society and democracy.
Friar said in a LinkedIn post on Wednesday that she co-authored an essay with Laura Bisesto, her chief of staff at OpenAI, and the former global head of policy and privacy at Nextdoor. “The Potential for AI to Restore Local Community Connectedness, the Bedrock of a Healthy Democracy,” is an essay that focuses on digital connections among neighbors to strengthen community fabric.
“While we view AI as having a major impact on our digital lives, the way digital impinges on real life may mean that AI is actually the biggest single influencer of our real-life experience, in particular, how community connectedness is established and nurtured,” the essay states.
In 2020, Nextdoor explored counteracting trends that were driving down neighborly connections, according to the essay. The company conducted a global scientific study with academic leaders. The research found that knowing as few as six neighbors, and neighborly acts of kindness, reduces the likelihood of feeling lonely and is linked to lower depression and social anxiety.
Friar argues that AI-enabled platforms can support the creation and sustenance of meaningful, place-based interactions and networks of support, which is the next leap forward in community building.
Regarding generative AI, some examples offered are fine-tuning models to uphold unique local speech patterns, and also using it to support constructive conversations by suggesting ways to rephrase potentially offensive comments with more prosocial revisions. Friar states in the essay: “Let’s ensure that AI serves as a cornerstone for a vibrant, inclusive, and resilient democracy.”
You can read the complete essay here. One thing is for sure, the impact of AI on the economy, workplace, and communities is still in the early innings.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
The following sections of CFO Daily were curated by Greg McKenna
Leaderboard
Some notable moves this week:
Markus Neubrand was appointed CFO of German shoe and sportswear giant Puma (XTRA: PUM), effective Oct. 1. He will succeed current CFO Hubert Hinterseher, who will leave the company by mutual consent on Dec. 31. Neubrand most recently served as CFO of Swiss retailer Guess. He previously held multiple roles during a 17-year tenure at German fashion giant Hugo Boss, including CFO and COO for its business in the Americas.
Jan L. Schott was named SVP and CFO of Thermon Group Holdings, Inc. (NYSE: THR), an industrial process heating solutions company, effective Oct. 14. Schott brings more than 30 years of experience.
Chris Hall was named CFO of Goodles, a mac and cheese and pasta brand. Hall is a seasoned financial executive with experience in guiding early-stage startups. Most recently, he was CFO of Sovos Brands, home to names like Rao's, Michael Angelo's, and Noosa.
Navam Welihinda was named CFO at Grammarly, Inc., the provider of an AI-powered writing assistant. Welihinda will lead Grammarly’s finance organization and corporate development efforts. Most recently, he served as CFO at HashiCorp, where he led the company’s December 2021 IPO.
Patrick S. Brennan was appointed CFO of Selective Insurance (Nasdaq: SIGI), effective Oct. 1. He will succeed Tony Harnett, who will continue at the company as senior vice president and chief accounting officer. Brennan most recently served as treasurer of The Progressive Corporation, overseeing the motor insurance giant’s treasury, capital strategy, risk management, and investor relations functions.
Ozan Pamir was named CFO of ChromaDex Corp. (Nasdaq: CDXC), a bioscience company that focuses on healthy aging, effective Oct. 21. Pamir will oversee all ChromaDex corporate finance matters and report directly to Rob Fried, CEO of ChromaDex and Founder of Tru Niagen.
David Rudow was named CFO of Jamf (Nasdaq: JAMF), a security and management platform for Apple devices, effective Oct. 28. He will succeed Jamf’s current CFO, Ian Goodkind, who is departing to pursue other opportunities, effective Nov. 28.
Paul Dobson was appointed CFO of EVgo (Nasdaq: EVGO), which operates a charging network for electric vehicles, effective Oct. 1. Dobson most recently served as CFO of Ballard Power Solutions, a clean energy company.
Big Deal
A new survey by Littler Mendelson, an employment law firm, gauges how businesses are managing generative AI use in the workplace and key challenges in tracking and enforcing policies. Just 44% of businesses have policies in place covering generative AI use in the workplace and only 31% currently offer generative AI training to employees, according to the survey.
The most common way policies are being enforced is by setting expectations with employees (67%), which suggests some policies may lack the teeth to be most effective, according to the firm. Fifty-five percent are using access controls that limit AI tools to specific groups and 43% conduct regular audits or reviews to monitor compliance. The findings are based on a survey of more than 330 C-suite executives.
Going deeper
Here are a few Fortune weekend reads:
“Southwest Airlines stock jumps 10% as investors embrace turnaround plan” by Greg McKenna
“Jamie Dimon says business school grads taking a private equity job while already working at JPMorgan is ‘unethical’” by Sydney Lake
“A laid-off Foot Locker employee shorted the stock and made over $100,000, authorities say” by Amanda Gerut
“Starbucks CEO hype has been ‘overdone,’ Jefferies analysts say in rare downgrade” by Sasha Rogelberg
Overheard
“Not only will these projects train the next generation of tradespeople with good-paying union jobs, but they will also help keep the lights on during emergencies, bolster America’s energy independence, and ensure we win the economic competition for the 21st century, over China and anyone else.”
— Michael S. Regan, the administrator of the U.S. Environmental Protection Agency, wrote in a Fortune opinion piece about why climate and infrastructure legislation enacted under the Biden administration should not be rolled back.
