Organizations are increasing their investments in AI and Generative AI (GenAI) technologies by the day. One clear sign of the momentum is a surge in the number of executives with a new title: chief artificial intelligence officer (CAIO).
Expect to see a lot more of this title in 2024. Even if your company is still in the AI experimental phase, giving a C-level executive responsibility for this technology can help you accelerate your AI deployments while mitigating the risks. It also sends a strong signal to investors that your company is all-in with AI.
The rise of essential new executive roles
This isn’t the first time we’ve seen a specialized executive role emerge in response to a fundamental technology shift. Consider the rise of chief cloud officers during the early days of the enterprise cloud computing boom—one that I can relate to firsthand.
Just over 10 years ago, I started a new role as head of Cloud at Tableau Software, where I was responsible for leading the company’s evolution to a cloud-first company. Tableau was among many companies adding senior executives with “cloud” in their titles at that time. It was a strategic move to emphasize that they took the cloud seriously. I was empowered to make bold, impactful decisions that shaped the company’s infrastructure and long-term strategy and so were many others, as the title later evolved into chief cloud officer and gained popularity.
Today, I’m seeing the CAIO title gaining similar momentum. According to Foundry’s AI Priorities Study 2023, 11% of midsize to large organizations have already designated an individual for this role, and another 21% of organizations are actively seeking one. The CDO Club held a CAIO Summit 2023 in December, billed as “the world’s first-ever event specifically designed for chief artificial intelligence officers.” And, as part of the Biden administration’s wide-ranging executive order on AI, many federal agencies are now required to name a CAIO who will be charged with promoting the use of AI and managing its risks.
Just as the chief cloud officer role was pivotal in navigating the cloud computing era, today’s CAIOs face a similar, albeit unique, set of challenges and responsibilities in the realm of AI.
The CAIO’s responsibilities
Why should the CAIO be a C-level position? Because that person will lead the development and execution of the AI strategy across the enterprise while ensuring that the company always keeps ethics and governance considerations top of mind.
One responsibility will be to create (and oversee adherence to) guidelines that will inform how business units deploy AI and GenAI solutions for their specific workflows. McKinsey expects about 75% of the value that generative AI use cases will likely fall across four areas: Customer operations, marketing and sales, software engineering, and R&D. Without coordinated and coherent guidelines, each of these divisions is likely to come up with their own approaches to AI ethics, governance, and implementation. A CAIO will ensure consistency, compliance, and efficient deployment across the organization.
The challenge will be providing those guardrails without disrupting or delaying the organization’s implementation timeline. That won’t be easy because, as McKinsey reports, “(The) full realization of the technology’s benefits will take time, and leaders in business and society still have considerable challenges to address.” Such challenges include skills, risk management, business process engineering, and change management.
Addressing these challenges falls on the CAIO’s shoulders, and the list of responsibilities doesn’t end there. The CAIO must also stay abreast of developments in the ongoing discussions on how (or if) to regulate the development and use of Gen AI. Understanding these extensive responsibilities sheds light on the qualifications necessary for an effective CAIO.
A CAIO’s qualifications
If your organization plans to use GenAI-powered solutions broadly or has already begun doing so, consider hiring a CAIO. You need someone with the relevant background and experience who can develop your overall AI strategy, including how you will implement AI in 2024 and scale it to serve additional business-use cases over the long term.
Qualifications to look for in candidates include experience leading AI initiatives at their organizations and demonstrable success in achieving specific business metrics mapped to the use of AI and GenAI (i.e., improving productivity levels).
I also recommend asking candidates if they have an eye for rethinking how to measure AI’s value. I expect forward-looking companies to shift away from simple output metrics (e.g., number of blog posts produced or code commits) to metrics focused on achieving tangible business value. For example, a software development team’s goals could map to improving software quality and delivery consistency, speeding time to market, and increasing customer satisfaction.
CAIO today, CIO tomorrow
As organizations continue to integrate AI into their core operations, the role of the CAIO will likely evolve, just as the chief cloud officer’s role has transformed over the years.
Hiring a CAIO is a good investment in 2024, given the attention required to the unknowns, risks, and criticality of rolling out an effective AI strategy. However, over time the CAIO’s role will broaden as AI and GenAI technologies transition from a specialized technology for early adopters to a standard tool across the business.
Eventually, CIOs and CTOs will be responsible for their organizations’ AI strategies—just as they are for cloud strategies today. When AI becomes a fundamental part of a company’s technology strategy, the CAIO will have accomplished their mission.
Again, I speak from first-hand experience. Ten years ago, as part of my cloud leadership role at Tableau, I often spoke to audiences of thousands of people about how I built the company’s cloud-first strategy. Today, I don’t think a similar session would attract such a large crowd—that audience would be packed into the room where a CAIO is speaking.
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