The C-suite’s newest member? The Chief AI Officer
Learn how leading companies are using a formal CAIO role to speed adoption, navigate risks, and accelerate value creation from AI.
Estimated read time: 3-4 minutes
For many companies today, delivering on AI’s enormous potential means having a dedicated AI leader to point the way.
The technology’s complex new considerations and massive momentum increasingly demand more hands-on strategic and tactical oversight from the C-suite, especially as proof-of-concept AI initiatives evolve into large-scale implementations.
The answer? The chief artificial intelligence officer (CAIO), a critical new role that nearly half of the organizations in a recent KPMG survey1 have either already established or are planning to add within a year. C-level ownership of AI and generative AI (GenAI) is an important consideration for any company that views these technologies as a way to create new value—and that describes a lot of companies today: Two-thirds of executives in another KPMG survey2 said they believe AI and GenAI will have a high impact on their companies over the next three to five years.
Driving AI through in-house champions and steering committees has been a logical place for many companies to start. However, as the investment, expectations, and complexity around AI continue to increase, sustainable success will require a strong leader in a clearly defined role. Let’s meet the CAIO.
Sourcing a CAIO
Adding a new role to the C-suite is a big step, and not every company needs a CAIO today. But it’s a timely discussion for CEOs and boards that see growth opportunities from AI in areas such as new product development, enhanced services, and workforce productivity.
A dedicated CAIO can provide essential strategic oversight that many companies are currently sourcing as “part-time” work from other company leaders (including the CEO). But AI has quickly become a full-time job. Beyond providing singular expertise, a CAIO can help accelerate adoption and secure early-mover advantages, such as sourcing hard-to-find AI talent. The CAIO can also manage and optimize the significant new investment that many companies are making in AI.
What makes a great CAIO? In our work with clients and our own experience hiring a CAIO, KPMG has identified some important traits to look for, as we outline in a new report on the emerging CAIO role:
who can provide a clear vision, prioritize initiatives based on value, and deliver an agile roadmap that adapts to AI’s fast-moving changes
with experience driving complex changes in large enterprise projects
with strong tech and data skills, and a sharp understanding of AI’s capabilities, limitations, and risks
who has the people skills to establish buy-in across every part of the organization
Setting up for success
To date, we’ve observed that many companies have hired a CAIO from within. An in-house expert’s strong understanding of the organization and how to get things done can help companies move faster on collaboration and implementation. But as the demand for CAIOs grows, we expect to see a higher number of external hires as the talent pool expands and stakeholders place a premium on the position.
Of course, hiring a CAIO is just the first step. For the role to be impactful quickly, company leaders must empower the CAIO with the appropriate support and funding. This will streamline AI enablement and change management efforts that generate new value. And leadership’s support will help set up the CAIO for success on five critical tasks right out of the gate:
1
Establish responsible AI governance
This is Job One for the CAIO. Clearly defined governance allows the organization to move quickly but also safely—mitigating legal, ethical, and regulatory risks.
2
Build a strong cross-functional team
Establishing a cadence of interactions across all relevant teams can help incorporate a diverse mix of perspectives and skills—and facilitate change management.
3
Size the AI opportunities and threats
Prioritizing effort and investment based on AI’s potential value creation is critical. Try looking at it in three areas: worker productivity gains, enhanced services and products, and competitive advantages and risks.
4
Shape a vision and strategy for AI
The CAIO needs to quickly articulate a clear vision for AI that includes go-to-market planning, a detailed portfolio of offerings, and a roadmap for implementation.
5
Tailor your portfolio of AI initiatives
A key here is finding the right mix of speed, impact, and security among the potential initiatives while also getting AI into the hands of a wide range of employees.
The CAIO blueprint
AI and GenAI can do a lot of work on their own. But to be truly impactful and create new value for companies, these complex, rapidly evolving technologies require dedicated oversight.
For an increasing number of companies today that means a full-time CAIO empowered to pursue AI’s myriad opportunities—boldly, quickly, and responsibly. The CAIO can provide the strategic vision, ethical guidance, and innovation leadership that deliver value through secure, responsible adoption.
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Our new report, “Leading the charge on AI with a Chief AI Officer,” includes much more on this intriguing new role, including key skills, how to tailor the role, and learnings from established CAIOs at leading companies.
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