Insider Today: Automating away CEOs

Welcome back. Today is always a difficult day, particularly here in New York, as we remember the innocent lives lost 22 years ago.

If you only read one piece on the incredible acts of heroism that took place, I recommend this profile of Rick Rescorla. As a VP of security at Morgan Stanley, Rescorla developed an evacuation plan prior to 9/11 that saved thousands of lives. He died while helping people exit the South Tower.

In today's big story, we're looking at why the best place for AI to start automating roles should be at the very top of a company.

What's on deck:

• Markets: Arm and Instacart's big public debuts won't kickstart the IPO market.
• Tech: ChatGPT is already starting to lose some steam.
• Business: Four traits every great leader should have.

But first, ain't no fun when the rabbit got the gun.

If this was forwarded to you, sign up here.

The big story

How the tables have turned…

Just about everyone has spent at least some time wondering if their jobs are at risk of being automated away by artificial intelligence.

But the group that seems immune to those concerns — CEOs — is primed for being usurped by robots, writes Ed Zitron.

Ed's argument is straightforward: CEOs get paid a lot despite not providing much value for their companies. For all the talk of CEOs being transformational leaders full of business ingenuity, many are nothing more than figureheads. They don't have any responsibility or accountability, and their job boils down to boring media interviews and regurgitating ideas from consultants.

(I might be inclined to apologize to CEOs reading this, but the bad ones are too busy preparing their next TED Talk or drafting an uninspiring LinkedIn post.)

Maybe you don't entirely buy the idea that AI could do a CEO's job.

It's true that a lot of being a CEO is buzzword bingo — "Let's nab a quick win by doing a deep dive on synergies that can unlock efficiencies in our workflows!" — but it still seems like they do something, you say.

And if nothing else, you need someone at the top who will shoulder the blame when things go wrong, right?

So about that...

Last year was undeniably a bad year for most industries. With that in mind, one might expect leadership changes.

In reality, it was the exact opposite. The number of CEO exits last year (1,235) was actually down 8% from the previous year, according to a report from executive outplacement firm Challenger, Gray & Christmas. Not only that, but it was the lowest CEO turnover number since 2017.

To be clear, I'm not suggesting the role of CEO is entirely useless. (Neither is Ed, who previously wrote about how the modern CEO job is just broken.) But I don't see any harm in the boss realizing tech could replace them.

After all, if they're willing to do it to us, they should know the same could be said for them.

Read the full story.

3 things in markets

• Arm and Instacart's IPOs might not have the strength to save the public markets. Expectations are high that the upcoming IPOs could open the floodgates for other companies. But they might be outliers instead of catalysts that can end the IPO drought.
• Bill Ackman sounds off. The billionaire hedge fund manager foresees challenges for regional banks and commercial real estate, but thinks Elon Musk's X will ultimately succeed. Here are six of his best quotes from a recent interview.
• A China economic downturn could hit these stocks the worst. A Bank of America note highlighted 10 stocks with the greatest revenue exposure to China. From Wynn Resorts to Broadcom, these stocks have the most on the line regarding the state of China's economy.

3 things in tech

• ChatGPT is losing its hype. Traffic fell for the third month in a row. Although it could be linked to students on summer break, researchers have also found that the chatbot is becoming less accurate.
• All the Flexport drama. Right before the CEO abruptly left last week — just one year into his role — the company experienced an exec exodus. Now, Flexport is telling employees to expect cost-cutting measures and a possible workforce reduction. Plus, Ryan Petersen, Flexport's founder who has now reprised his role as CEO, announced he was rescinding job offers for candidates joining as soon as Monday.
• Apple's $200 billion drop may foreshadow a post-US tech future. The tech world is experiencing a vibe shift. China, which is an important market for US tech companies, is becoming increasingly technologically independent.

3 things in business

• The strange, twisted reason why college is so expensive. All the talk of wiping out student debt does nothing for the underlying problem — the astronomical price of higher education. It's a market-driven model that has a massive gap between the sticker price and what the average student actually pays.
• Managers are getting crushed by under-the-radar burnout. A new study found that managers are looking for new roles at a higher rate than non-managers are. They're experiencing higher levels of burnout and disengagement in their roles.
• Microsoft's former VP of HR reveals traits of outstanding leaders. Chris Williams said that most of the great leaders he's encountered shared four common traits, including team focus and candor.

In other news

• How Parrot Analytics shook up Hollywood by picking streaming hits.
• A 10-year retrospective on "One Direction: This is Us."
• These are the five sports betting battlegrounds to keep an eye on this year.
• A Stanford MBA student and TikToker shared her spreadsheet to stay organized and productive.
• Nancy Pelosi, who is 83 years old, announced that she will run for another term in Congress.
• Ocean explorers are puzzled by a golden orb resting on the Alaskan seafloor.

What's happening today

1. Anniversary of 9/11 terrorist attacks. The Pentagon, 9/11 Memorial & Museum, and other institutions will hold commemoration ceremonies. President Joe Biden will participate in a memorial ceremony in Alaska with military members and their families.
2. The New York Jets compete at home against the Buffalo Bills. Bills safety Damar Hamlin is expected to compete. This would be his first regular-season game since January, when he suffered a cardiac arrest on the football field.
3. Earnings today: Oracle, Bovis Homes Group, and other companies.

For your bookmarks

"I tried 38 of Trader Joe's fall foods." The reporter said she would probably buy 28 of the items again — but not the pumpkin gnocchi or caramel-apple-flavored granola.

The Insider Today team: Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Lisa Ryan, executive editor, in New York.