With 74% of organizations now using AI according to the AI and Information Management Report, companies all around the world have begun creating leadership roles to help them get more from their AI investments. In fact, almost half of companies in a recent KPMG survey said that they’d already created a c-suite role for AI or would do so within the next year. But the growth of c-suite AI roles isn’t just limited to the private sector — in October 2023, an executive order declared that all federal agencies must designate a chief AI officer (CAIO) to nurture responsible, safe, and effective adoption within the federal government.
A CAIO can help drive AI success throughout an organization by removing roadblocks, overcoming inertia, limiting cybersecurity risks, and more. Still, while CAIOs can be powerful accelerators of efficient AI use and adoption, it’s important to understand that not all companies need or will benefit from an AI-related c-suite role. In this article, we’ll take a closer look at what CAIOs do, where they come from, and where and when they may (or may not) be needed to drive AI success.
Understanding the Role of a Chief AI Officer
According to Boston Consulting Group, more than half of executives actively discourage AI use, despite its clear benefits. Most of those executives said they didn’t understand the technology or that they didn’t have proper guardrails in place, two challenges that could be solved by a CAIO responsible for internal education, advocacy and safe adoption.
In addition, CAIOs can help define and guide an organization’s AI goals by establishing clear objectives and KPIs, which many organizations currently lack (and if you can’t define clear objectives or goals with AI, you might want to question your need for the technology in the first place).
A CAIO can also help coordinate training programs to improve the effectiveness of AI, limit security risks by strengthening policies and security controls, and drive adoption by encouraging and incentivizing use. Moreover, CAIOs can help their organizations stay on the leading edge by making sure that they keep up with new AI advances, which continue to arrive at a staggering pace. High-profile companies or vendors of AI, meanwhile, can signal their commitment to the technology by hiring a CAIO. These are just a few of the many benefits that CAIOs can provide, and, in many cases, they might never be realized without a CAIO in place.
As you can see: the nature of this emerging role is quite broad, which means CAIOs can come from a variety of backgrounds. Whether your CAIO has technical expertise or people and change management expertise depends on the particular challenges and situations faced by the organization. The important thing is to choose a tech evangelist who can work cross-functionally to meet your organization’s goals.
When a CAIO Is (And Isn’t) Needed
While a c-suite AI leader can be beneficial to many organizations, such a role isn’t always necessary, and in some cases, it could even hamper progress by creating superfluous structures or cumbersome red tape. In addition, leaders who are new to an organization (like a CAIO) might not have a full understanding of their new business or its data, which could limit their effectiveness and cause problems from day 1.
On the other hand, organizations that handle extremely sensitive data or operate within highly-regulated sectors will likely need an AI leader to ensure compliance with strict internal and external regulations. This is one of the reasons why the federal government will soon require CAIOs at all its agencies in accordance with a 2023 executive order. Further, Techopedia advises that a CAIO is likely necessary for companies that market or are heavily reliant on AI, but this may not be the case for other organizations.
In cases in which a CAIO might be unnecessary, other leaders and change agents in and outside of the c-suites can be relied on to perform some of the same duties. This could be a more sustainable solution for smaller organizations or other firms that don’t deal heavily in AI, since the additional bureaucracy that comes with a CAIO might cause more problems than it solves. Boston Consulting Group argues that CIAOs and other related roles might not always be necessary, and that, instead, “every c-suite-member" is and should be an AI leader and evangelist.
Finding the Right Approach for Your Organization
To determine whether your organization needs a CAIO, you should start by assessing your digital workplace maturity—a measure used by industry analysts and leaders to understand a firm’s readiness to adopt new technology like AI.
Gartner outlines 5 tiers of digital workplace maturity, with 1 being the lowest and 5 being the highest. At levels 1 and 2, organizations are generally disorganized and lack basic foundational building blocks like acceptable use policies or effective cybersecurity controls. Level 1 and 2 organizations may also have disorganized enterprise data that puts customers at risk and limits the effectiveness of AI tools. At level 3, organizations likely have these basic pieces in place and are moving on to more people-oriented tactics like technology training and enablement. At levels 4 and 5, organizations have all proper controls and training programs in place and are ready to use AI safely and effectively.
If your organization has yet to evolve its digital workplace maturity to a higher level, you should consider working with a CAIO as long as your broader goals and institutional profile align with this vision. Companies that are not ready for AI are some of the most likely to benefit from the efforts and expertise of a leader who has dedicated time and resources to help drive AI success.
Regardless of how your organization decides to approach AI adoption and readiness from a leadership perspective, it’s important to acknowledge that AI is here to stay and to plan accordingly—with or without a CAIO.
