The Blackstone exec behind the firm's AI playbook says CEOs should ask themselves these 5 questions

"Rodney Zemmel, the global head of Blackstone's operating team, who leads a group that advises the firm's 250 portfolio companies, shared a playbook for how CEOs should use AI to get the most out of their investments. As of last February, those companies made a combined $226 billion in annual revenue,according to a press release announcing Zemmel's hire. AI is what "we're all going to be working on for the rest of our professional careers," Zemmel said at a Blackstone-hosted conference for CEOs last month."

"Leaders need to ask whether they're demonstrating "top-down commitment," meaning that CEOs are not only committing resources to AI, but are also personally invested in its roll-out. Businesses should also consider whether they're taking a "business-first approach" rather than a "tech-first" one - their objectives need to relate to specific business goals that AI can help achieve, not solely integrating AI. For example, Zemmel said, a company's head of customer service could focus on boosting productivity and co-develop a plan with a technology lead."

"It's also key to have "clear ROI," measured by EBITDA - earnings before interest, taxes, depreciation, and amortization - and by revenue growth, he said. "If you can't see either of those, it's not worth your spending your time on it," Zemmel told the CEOs in the audience. Fourth on Zemmel's list was thinking about a "path to scale," since he said many companies are too focused on piloting AI uses, rather than scaling them."

Blackstone's operating team advises 250 portfolio companies that together generated $226 billion in annual revenue. Five key questions guide effective AI integration, focusing on top-down commitment from CEOs, a business-first rather than tech-first approach, clear ROI measured by EBITDA and revenue growth, and a defined path to scale beyond pilots. Executives must align AI objectives with specific business goals, such as productivity gains in customer service, and ensure leaders are personally invested in rollout. Many companies have struggled to realize returns on AI investments, making measurable impact and scaling critical for worthwhile adoption.

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