The CEO AI Dilemma: Short-Term Efficiency or Long-Term Sustainability?

Originally published on CenterForSocialCapital.com

Televerde CEO Vince Barsolo explains why the choice you make could be life or death for your organization.

AI is already replacing jobs. That’s not a forecast. It’s already happening. And as CEOs, we’re the ones signing off on it. The pressure is real: Deliver growth, cut costs and satisfy investors. AI and automation give us the levers to pull.

But let’s be clear: Algorithms can’t build trust, inspire loyalty or spark creativity. They can process tasks but can’t hold a company together when the ground shifts. The companies that survive disruption won’t be the ones with the most tools. They’ll be the ones that safeguarded their human foundations and kept their people connected and committed.

The best leaders I’ve worked with shared one thing in common: They invested in people. They treated mistakes as coaching moments. They valued contributions and made space for every voice. And they believed in unlocking potential, even when someone’s background didn’t look “traditional” for corporate success.

I learned those lessons early, and they’ve only become more relevant. Leadership has never been about titles or control. It’s about creating the space where people can do their best work. Long before AI, that’s what drove performance. Today, it matters even more when technology can level the playing field.

The Illusion of Efficiency

AI promises speed, precision and cost savings — and boy, does it deliver. We’ve all seen the productivity gains. But if that’s all we chase, we’ll end up with hollow efficiency.

A company can automate workflows, but if employees don’t feel connected or trusted, the gains don’t last. Innovation dries up. Customers notice the lack of real relationships. And turnover wipes out the savings.

One client told me the reason they expanded their partnership wasn’t the tools. It was the people. Trust, understanding and consistency still win and will always outweigh the latest tool or platform. Technology can power the work, but only human connection will sustain it.

Here’s the question every CEO should be able to answer: If AI can do the tasks, why do we still need people? There’s only one answer. Companies don’t run on tasks; they run on trust, creativity and relationships. Customers don’t form loyalty with algorithms. They form it with people who listen, understand and solve problems.

When disruption hits, it’s your people who grab the wheel, patch the leaks and keep the ship afloat. And since every company has access to the same AI tools, the real differentiator is the workforce you keep, develop and inspire.

Even if companies automate internal workflows end-to-end, the market remains human. People still make decisions about partnerships, purchases and loyalty. And those people — customers, partners, communities — expect to feel heard and understood.

This is where CEOs need to pay attention. Companies that invest in connection and community will win in the long run.

The CEO’s Responsibility

There are decisions in this new era that only CEOs can make. We alone decide how much capital goes to AI adoption versus how much fuels workforce investment. We shape the story we tell to boards, shareholders and employees: Is AI just a cost-cutting tool, or a force multiplier that unlocks human potential? And we are ultimately accountable for long-term resilience, not just quarterly margins.

The stakes are real. McKinsey reports that while nearly all large organizations are investing in AI, only about 1% believe they have reached maturity in adoption. The rest are still struggling to scale and create meaningful impact. Meanwhile, SHRM and Korn Ferry research shows that replacing a skilled employee can cost anywhere from 50% to 200% of salary, with burnout-driven turnover often hitting the high end. And Edelman finds that consumer trust in employees and experts is one of the strongest predictors of brand loyalty. That’s not just “culture.” That’s the balance sheet.

You can’t outsource trust; it lives or dies with the CEO. If we get the balance right, automating where we should while doubling down on people where it matters most, we don’t just survive disruption. We thrive because of it.

The next decade will be full of disruption. But if we lead with innovation and commitment, disruption can strengthen bonds instead of breaking them.

Picture a workforce where AI clears the low-value work, giving employees space to focus on creativity, problem-solving and building customer trust. Imagine those employees in a culture where they feel connected, trusted and part of something bigger. That combination isn’t just efficient. It’s transformative.

That’s what will separate companies that merely adopt AI from those that thrive because of it.

The Leadership Mandate

AI will evolve. New tools will arrive. More jobs will be automated. But here’s what won’t change: Companies are built on people. And people need connection, trust and community.

This isn’t a culture program. It’s a leadership mandate and sits squarely on the CEO’s desk.

Boards can demand efficiency, investors can press for margin and HR can drive engagement. But only the CEO decides whether AI becomes a short-term cost play that erodes the company’s core — or a strategy that amplifies the very things technology can’t replace: trust, loyalty and creativity.

That’s the choice in front of us. And it’s one that only we can make.