Is ChatGPT your next board member?
Artificial Intelligence is all the rage. This is fortunate since natural intelligence often seems to be in short supply. As humans meander into mediocracy, it is good to know that some replacement intelligence will shine forth from beyond meatspace. Close your eyes, take a deep breath, and let’s talk about your next Board of Directors.
Venture-funded companies have traditionally had an early stage board consisting of a mix of founders, the CEO, and lead investors. From time to time, some industry notable, celebrity, or retired government bigwig joins the board to act as a press and cash magnet. As long as the revenue and products are flowing, boards are often affable and work well together well. Egos are balanced and the wine is good.
For unicorn companies, this situation can last for years. For most, it is fleeting. Products are late, bookings targets missed, the market goes south, or the CEO has some flaws. When a company reaches one of these critical inflection points some hard questions are raised and the answers are not apparent nor is there a consensus on the solution.
Founders and the CEO think the answer is more capital; investors may think it is profitably at any costs led by a few wellplaced executions. Technical founders think product should sell itself while the sales team dares to mention the flaws. Maybe the market doesn’t get it, investors may question product viability, addressable market, or pricing. Tempers sizzle, fingers are pointed, and there is much gnashing of teeth. In these Bud Light moments, everyone can agree on only one thing: it’s time to fire the VP of marketing.
This is where an experienced, independent director has traditionally had a huge impact. He or she is typically well schooled in all dimensions of the business; unfortunately they are usually neither large shareholders nor employees of the company and may or may not be listened to.
Enter ChatGPT.
Is there any independent director more knowledgeable than a good AI? With access to all the knowledge of the Internet plus whatever information your company uploads about your market, product, personnel, competition, finances, and strategy it knows about more dimensions of your business than any carbon-based life-form possibly could. It’s underlying model is unburdened by fear, uncertainty, or a mortgage. It’s IQ is unmeasurable. It never eats, sleeps, get’s drunk, or has a fatal attraction to that sales rep in Ft. Lauderdale. It learns more in a minute than a traditional board member can learn in a lifetime.
What could go wrong? Well, maybe a couple of things.
You will anthropomorphize your silicon-based board member. It will become Chatsworth or Chatty Cathy (if you are into nostalgia). You will treat it skeptically at first—a novelty. After a few well-timed insights you will treat it as an equal. After an absolutely, without-a-doubt ridiculous recommendation that turns out to work, you will defer to it. At some point, you may get a little nervous about your own board seat.
Not a problem though, Chatsworth is objective and honest. Unburdened by an orbital, medial, and ventrolateral frontal cortex, there are no emotions and no anger. Pure, clear, Vulcan logic.
Sure, Chatsworth was programmed by some overpaid nerds in San Francisco. Of course, they want to save humans from themselves and ensure everyone has access to their software. And absolutely none of their biases and peccadilloes found their way into the model. OK, so Skynet was developed just down the freeway by the same sort of folks. But hey, it’s just a movie people.
At Marlborough Street Partners, we have an all inclusive package. Silicon doesn’t experience the joy of victory and the lessons of defeat. It doesn’t have scars on its chest from a life-time of incoming arrows. It doesn’t know what a group of humans can do when they are motivated to fight through the obstacles and win. It never looks in someone’s eye and says: “It’s time to leave.” All those Sunday nights and Monday mornings are meaningful. Living with uncertainty and embracing change, blowing the whistle and leading the squad out of the trench count for something.
Why choose?
We think carbon supported by silicon makes the best board member. Our partners have the kind of experience that only humans can achieve and a level of knowledge that has been developed through years of silicon addiction.
Call us ChatMSP. We think we have the best of both worlds.
About MSP
Marlborough Street Partners is a team of senior operating executives that works with private equity and venture backed firms. We guide portfolio companies through their most important inflection points. Our C-level partners assess, reengineer, and when required, provide interim management to get companies on a winning trajectory. We have addressed a variety of inflection points across small, medium, and global companies. We have helped companies get to the next level organically and through mergers and acquisition.
Ken Marshall, Managing Partner