Artificial intelligence has had an undeniable impact on most industries and organizations over the past year, and I believe it will dramatically transform how business is conducted for years to come. But the AI revolution isn’t new. In fact, I would argue that it is akin to what we’ve seen with the rise of the internet and cloud software.
As companies begin to navigate this with AI, it’s no surprise that we’ve seen a rise in chief AI officers (CAIO) joining executive teams. In fact, recent data indicates that 21% of midsize to large companies are searching for someone to fill the CAIO role, and news that The White House is ordering all federal agencies to name CAIOs has sparked deeper conversations about the need for this role in the private sector.
However, I believe having a chief AI officer is a red flag that an organization will not succeed in the economy of tomorrow. Here’s why.
Should the CAIO be a dedicated role?
I would argue that AI is set to have the same impact and ubiquity as the internet and cloud software but when those technologies arose, most firms didn’t jump to hire chief internet officers or chief cloud software officers. Similarly, we should ask ourselves: Does AI really require its own dedicated role?
Just like any new phenomenon that has the potential to transform our work, it’s critical to incorporate it into a company’s strategy across the organization at every level, and not keep it siloed to one dedicated individual or team. Whether your company has a strong tech focus or not, it would be a misstep to hire one sole individual who is responsible for overseeing AI’s adoption and implementation within your organization.
Instead, AI should be an integral part of your teams’ holistic thinking, and every C-suite member should be an expert in their own domain. When your chief technology officer is having a strategic discussion about the software the company should use and build, AI should be part of the conversation. When your chief product officer is having conversations about product development and innovations to embed in existing products, AI should be part of the conversation. Your chief information officer should consider AI in every strategic discussion around what software to use and how to better empower teams to increase productivity. Your chief financial officer should consider the use of AI in every day finance processes particularly involving data compilation and review. Even your general counsel should consider AI in strategic discussions around how to increase legal knowledge and efficiency while reducing risk. .
Still, I do believe there are a small number of exceptions to this rule. For instance, if you’re more of an “analog” company in product and operations, or if you don’t have a large technology-focused staff, a CAIO might be helpful—for now. For these companies, a CAIO could fill a temporary role, acting as a catalyst for rethinking the way you run your business or empower your teams to do their work. Take for example a cargo shipping company that relies on physical bills of lading to be produced by hand when arriving at their destination port, a process which is still primarily manual. A CAIO could help determine how and where AI could be used to optimize time, reduce errors, and free up the team to be more creative.
CAIOs can create silos around AI strategy
For those organizations still considering hiring a CAIO, remember that the AI revolution could follow a similar timeline as that of the internet revolution, which took about 10 to 15 years to fully mature. Having one person responsible for keeping pace with the innovation and changes associated with AI means you’re bound to see silos and breakdowns around implementation and strategy.
While the role is meant to be horizontal and span an entire organization, ownership, authority, and reporting hierarchy could be unclear when it comes to CAIOs. While CFOs and CROs have clear guardrails around what they own, influence, and where they execute, those same parameters might not be as clear for CAIOs because the concept of the role itself is so new.
Organizations might be quick to hire CAIOs before thinking through the reporting structure, or the CAIO might instinctively align to a specific department or line of business, and the strategy and execution will become focused on that group rather than the entire organization.
Focus on your AI strategy, not one specific role
Many experts believe that making AI part of the fabric of your organization is an important step in achieving success with it in the long term. Instead of boards putting money towards the CAIO role, I believe they should spend that time and money developing and implementing a broader AI strategy across the organization. If your current team of C-suite executives isn’t well-versed in AI, the best place you can start is with research and education. There is so much information available today that executives can use to understand implementations and determine which applications will fit best for their company.
Experimenting is also critical. Allocate a few people within your C-suite to try out basic AI tools and report back. Which worked best? What capabilities did you like and which didn’t work for the company’s larger goals and desired outcomes? With so many AI-powered tools available today, don’t jump on the first solution you come by. Make sure you spend time trying out different options to find the one that best suits your needs.
Another alternative to hiring a CAIO is to bring on an AI advisor in a temporary role. This person could serve as a bridge to build and develop a comprehensive AI strategy. Given their experience with AI, they could focus on educating others and supporting C-suite executives as they learn the ins and outs of AI, in addition to helping with AI tool selection and implementation.
Ultimately, I think that AI will become an everyday part of our work lives, and the demand for a CAIO will be minimized over time. Education, a keen focus on strategy, and implementation at every level of an organization will be more important in ensuring your company is set up for success with AI. The only way to keep pace with the innovation and changes associated with AI is for the entire C-suite to embrace and understand change, not outsource change to a newly created CAIO role.
