How a chief AI officer can help accelerate your AI strategy
The fact that generative AI (GenAI) will change the way we work is no longer a question of “if” but “when.” In our annual predictions this year, we focused on how this technology changes the role of company leaders. What do we predict? Realizing the full potential of GenAI will demand new skills, knowledge and ways of working from everyone from middle management to top executives. For the C-suite in particular, there’s a critical need to close a vision and skills gap to establish AI-native operations and business models. Leaders will likely need a vision to unlock sustainable value from their AI strategy while maintaining trust — that is, capitalizing on the opportunity of AI while implementing Responsible AI practices.
It's a big job, and it’s the reason why more and more companies are considering whether they need to add a chief AI officer (CAIO) to their executive team. Today, there’s no single existing role in the C-suite with a clear, natural mandate to oversee AI, and in many organizations the responsibility has fallen to the chief technology officer or chief information officer. But as organizations look to both drive growth and transform operations with AI, a dedicated CAIO emerges as a key player in steering these initiatives to success.
Modern organizations are no stranger to this level of challenge and change, and they have evolved their executive teams. The last two decades have seen a significant evolution in the C-suite landscape, reflecting changing priorities and challenges. For example, the growing importance of data, focus on sustainability and prioritization of the customer experience have each ushered in new C-level execs — chief data officers, chief sustainability officers and chief experience officers. Likewise, boards have also been challenged to upskill themselves and examine their composition to reflect changing expectations and risk management priorities.
We see the CAIO (or an equivalently empowered C-suite leader like we have at PwC) as a response to all that is required in the complex landscape of AI transformation. This includes your internal transformation agenda, value creation opportunities, technology enablement, risk management, external relationships and stakeholder demands — just to name a few.
Given their broad remit, a CAIO should be a well-rounded leader with not only a keen understanding of AI and associated technology but with strategic business capabilities and the ability to work across the C-suite.
Effective collaboration with other company leaders is especially important as a multi-disciplinary approach with contributions of talent, perspectives and resources from across the business is what’s needed to derive value from initial investments and take the necessary steps towards true transformation.
The business case for the chief AI officer
The importance of the CAIO for strategic transformation cannot be overstated. By providing leadership and vision for AI initiatives, the CAIO can help make sure that these technologies are selected, deployed, operated and monitored in a way that increases their impact, drives growth and mitigates risk.
Organizations that build AI with responsible practices in mind sustain value. This takes a cross-disciplinary, diverse team that effectively addresses the inherent and novel risks associated with the development of AI models and AI- or GenAI-based solutions. It’s more than just addressing bias in data through effective governance. It’s the consideration of enhanced cyber and security risks with your CISO. It’s evolving your privacy risk assessments and considering evolving legal and regulatory requirements. It’s fundamentally changing the way people interact with technology, potentially in every process in your organization. It’s preparing everyone to adapt to a new way of behaving, managing and working — one in which people are empowered to always play a pivotal role, applying the technology to augment their work, reviewing outputs and decisions and continually refining their approach.
Already designated an AI leader in your organization? It may be time to consider whether they have the appropriate skills or are positioned to succeed. Leading the organization through this level of strategic change requires not only the traditional strategic thinking and leadership skills of a C-suite executive but also a multi-disciplinary focus. The latter isn’t likely to be found in existing roles that may be shepherding your AI strategy today. If your current AI leader fits this profile, elevating their role to the C-suite may be the critical next step in your AI journey.
In organizations where there's an existing chief analytics officer or chief data officer, you might consider evolving those into the CAIO role with broader analytics, data strategy and governance as part of their remit.
Roles and responsibilities of the CAIO
The primary responsibility of a CAIO is to oversee the development and implementation of AI strategies across the organization. This involves identifying and vetting opportunities where AI can drive significant improvements, such as enhancing customer experiences, optimizing operational efficiency, improving quality and creating new products or services. The CAIO also makes sure that internal use cases and productivity initiatives can be appropriately AI-enabled with reasonable cost and risk tolerance, without performance degradation. Broadly, the CAIO should work closely with other C-level executives and department heads to make sure that AI initiatives are well-integrated into the company's overall strategy and that they contribute to achieving its long-term goals.
The CAIO plays a crucial role in building and managing a skilled team of AI professionals, including data scientists, AI engineers, and analysts — key roles for running an AI factory and for translating business needs into technology solutions. This entails not only recruiting top talent but fostering a culture of continuous learning, innovation and change agility to keep pace with rapid advancements in AI. The CAIO should also make sure that the organization's AI practices adhere to ethical standards and comply with relevant regulations, safeguarding against biases and protecting customer privacy.
Relationship with the C-suite and board
Integrating a CAIO into the broader C-suite leadership team requires a collaborative and strategic approach to seamlessly align AI initiatives with the organization's overarching goals. The CAIO's interaction with other senior executives and the board is pivotal for embedding AI into the corporate culture, driving value for the organizations and an environment where data-driven decision-making and technological innovation are at the forefront of strategic planning.
The CAIO should work closely with the chief information officer, as well as the chief technology officer and chief data officer (if the organization has one) to make sure the technology and data infrastructure can support AI initiatives. This collaboration involves assessing current IT capabilities, planning for the integration of AI technologies and making sure that data management practices are in place to facilitate effective AI and GenAI deployment.
The synergy between a CAIO and other tech and data leaders is crucial for overcoming technical challenges and leveraging existing digital assets to drive AI- and GenAI-based transformations.
Engagement with the chief financial officer and chief risk officer is also critical, as the CAIO should articulate the value proposition of AI investments, aligning them with financial planning and risk management strategies. This involves presenting clear ROI projections and cost-benefit analyses while confirming that initiatives are aligned with your company's fiscal objectives, as well as with your risk appetite and management practices.
An open line of communication with the chief marketing officer and chief operations officer can also drive success in identifying opportunities for AI and GenAI to enhance customer experiences and operational efficiencies. By understanding the challenges and goals of these functions, the CAIO can tailor AI solutions that directly contribute to improving customer engagement, streamlining processes and driving business growth.
At the board level, the CAIO plays a strategic role in educating directors about the potential and implications of both AI and GenAI. This includes providing insights into emerging trends, competitive analysis and the legal and regulatory considerations of AI strategies. The CAIO's ability to translate these complex concepts into strategic business outcomes is essential for securing board support and effective oversight of AI initiatives.
What does a chief AI officer do?
- Owns and maintains enterprise AI strategy.
- Advocates and implements a Responsible AI approach across the business.
- Implements AI and GenAI capabilities across the organization in a coordinated manner.
- Scans environment, understands what’s happening and orchestrates various stakeholders and expectations.
- Establishes frameworks for defining AI transformation and system business requirements to make sure outcomes are aligned with expectations.
- Inspires and energizes AI development efforts.
- Cultivates a talent force that is AI-equipped and able to build and scale impactful AI.
Selecting your chief AI officer
Choosing to expand the C-suite is a big decision. Here’s what we recommend CEOs consider.
Evaluate current roles and gaps: Who does what now? Is there anyone driving AI initiatives under their remit today? If so, do they need more support or capabilities to succeed? Does it make sense to have this individual drive these initiatives long term or does the business case to establish a CAIO persist?
Discuss with the board: Your advisors want to help. Do they agree with the need for an elevated C-level role for AI leadership?
Identify candidates: If you’ve chosen to move forward with a CAIO, consider these specific skillsets.
- A leader with a strong grasp of AI technology, its applications and an appreciation for governance.
- A collaborative individual who is willing to work with and align with many other groups from risk management to business teams to align on expectations, requirements and goals.
- A translator who can speak to business teams, technical teams and risk teams and can translate among them.
- An individual who can gain sponsorship and broad support for their initiatives.
- A continuous learner who can rapidly learn the business as well as keep pace with changing regulatory, technical and consumer climates.
Your new CAIO may not need to be someone new to the enterprise. Consider candidates who are already driving AI or analytics initiatives internally or another leader who has a strong desire and foundational set of capabilities to grow into the CAIO role. Institutional knowledge, including how to get things done given the company culture, can be an advantage.
Regardless of your organization’s choice, recognizing someone at the C-suite to drive AI can enable your organization to drive sustainable, effective and strategic transformation with AI.
Generative AI
Lead with trust to drive outcomes and transform the future of your business.
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