I helped grow a steel company from $750 million to $12 billion. CEOs should use AI before they grade employees on it

I spoke to an audience at the Great Places to Work convention in Las Vegas, where an overwhelming majority of HR leaders in mid-market and enterprise companies had raised their hands to indicate their executive teams had mandated AI usage. However, when I asked if every member of their executive team was utilizing AI to enhance their value, the hands began to drop.

This observation sparked a conversation about the disconnect between mandating AI and its actual application. Many executives appear to delegate the adoption and strategy of AI to IT departments, consultants, or outside parties, rather than embracing it themselves, which they perceive as abdication. Recognizing this pattern, I emphasized the necessity for CEOs and executive teams to adopt AI and become AI-driven leaders before they can successfully build AI-driven organizations.

As companies begin integrating AI goals and skills into employee performance evaluations and compensation, a critical question arises: should compensation be tied to AI skills? The answer depends on the company's structure. If an organization's performance is typically evaluated based on specific skills that are likely to become more valuable, it makes sense to align compensation to those skills.

Nonetheless, if a company does not follow this precedent, it does not automatically imply that doing so is incorrect. What does worry me, however, is when AI-savvy CEOs are the ones dictating AI adoption policies. In this scenario, their lack of personal experience with AI usage limits their ability to envision AI's potential contributions to their organizations.

Companies that acknowledge the value of AI should set the standard for AI adoption within their executive teams instead of relying on an IT department or outside consultants. I experienced this firsthand when I became the Chief Growth Officer at Jindal Steel, and I encountered AI for the first time in December 2022. Initially, I dismissed it as a fleeting trend and deferred my engagement with it.

However, when I considered delegation and hired an IT department or an outside consulting firm, a college mentor reminded me of the importance of mastering valuable skills that transcend geographical boundaries. This moment crystallized my understanding that AI should be a skill I mastered myself, not a delegated responsibility.

I committed to using AI daily, and while I initially used it for mundane tasks like crafting emails, I eventually realized that I was focusing on the secondary aspects of AI. This led me to examine the core skills that made me an effective leader, one of which was my ability to ask strategic questions that could unlock new levels of growth.

I then pondered how AI could act as a thought partner and elevate my thinking. This realization marked a game changer for me as I began using AI to think strategically, which in turn transformed my leadership style within Jindal Steel. After a few months, I shared my AI-driven approach with Naveen Jindal, the Chairman of Jindal Steel.

He was impressed by my use of AI for strategic purposes and challenged me to drive it throughout the company, asserting that I should lead this initiative as the Chairman. Although I had limited experience with AI, I recognized its potential as a tool for enhancing strategic thinking. In response, I forged a partnership with Google to learn more about the technology, ultimately broadening my understanding and diminishing my reliance on AI as the sole determinant of its value.

The adoption of AI within Jindal Steel resulted in a remarkable growth in market cap from $750 million to $12 billion over a four-year period. This growth was primarily driven by strategic thinking, which AI supported and amplified. While AI played a role in this growth, it was not the sole factor. The key to Jindal Steel's success was the company's strategic thinking, which AI served to enhance.

After my tenure at Jindal Steel, I resigned to write a book and establish a company focused on the leadership aspect of AI. My message is clear: begin by addressing the most significant challenges your organization faces.