Considering Adding a Chief AI Officer? Here are the Pros, Cons, and 5 Characteristics to Look For

The artificial intelligence explosion is leading more organizations to consider adding a new executive position to their C-suite.

The growth in chief AI officer (CAIO) roles closely tracks with the remarkable rise in AI, as nearly two-thirds of organizations say they are regularly using generative AI in their daily work, nearly double the percentage just 10 months ago, according to a McKinsey Global Survey.

But while the CAIO role is becoming more popular, it’s not yet a common sight in the C-suite. In a recent Gartner survey of over 1,800 executive leaders, more than half (54%) said they had a specific AI leader in their organization who orchestrated AI-related initiatives. Still, the great majority of those organizations (88%) said their AI leader did not have the title of chief AI officer.  

Many experts say having one high-level executive manage a company’s artificial intelligence enterprise makes sense, given AI’s relative newness and high-investment status. In the past year, companies such as IBM, Dell, and Accenture have announced the addition of CAIOs.

“Unlike past tech disruptions, which occurred gradually, AI is reshaping today’s workplace at an unprecedented pace,” says Neal Riley, chief information officer at Adaptavist, a U.K.-based digital transformation company. “While most C-suite teams occupying common focus areas (e.g., CIO/CTO) will often be able to address these domains, introducing a new boardroom dynamic by bringing in the representation of a chief AI officer in these areas may change the dynamic of the conversation positively.”

Like any top-tier management initiative, bringing an AI officer aboard has its risks and rewards.

Potential Upsides of a CAIO

Having a single voice at the top. A good chief AI officer can lead a unified vision and strategy for AI across the organization.

“The [CAIO] can provide clarity, motivation, and speed, and create an alignment of AI initiatives with overall business objectives. It also sends a clear signal to customers and Wall Street that the organization has recognized the transformative potential of AI and won’t be left behind,” says Dev Nag, CEO of QueryPal, a workplace communications technology firm in San Francisco.

Stronger data management. CAIOs would also be best suited to ensure data governance across the organization, as data feeds AI strategies and produces analytics and predictions.

“From our experience in speaking with Fortune 500 data managers, they’re seeing disparate and decentralized data ownership, and there’s no clear corporate vision on how to use this data,” says Olga Beregovaya, vice president of AI and machine translation at Smartling, a language AI translation company based in New York. “Having an organization whose function is to collect data, train models, and produce tangible outcomes will help bridge this gap.”

Raising compliance standards. A chief AI officer role also includes corporate responsibility and compliance oversight. “That’s especially the case when ensuring that safe and ethical AI implementation principles are observed,” Beregovaya says.

Potential CAIO Downsides

Leadership quarrels. As with any new C-suite title, a potential trouble spot with a new CAIO position is conflict with other C-suite roles. One area of conflict could come from chief technology officers, who may believe the AI leadership role should be under their domain.

However, experts say there are several reasons why the CTO isn’t the right person to manage the CAIO’s new responsibilities.

“Very few CTOs have the core expertise in AI technology and AI applications to keep up with the frenetic advances and continually apply these breakthroughs to business problems,” Nag says. “CTOs have a very broad scope, balancing dozens of technological priorities, preventing them from giving AI the attention it needs.”

Short-term pain. Since the chief AI officer is a new role for companies, leadership responsibilities are most likely to be blurred in the beginning. “Consequently, the CAIO role can create more chaos than good early on,” Beregovaya notes.

AI for the sake of AI. A chief AI officer could champion expensive technology transformations—as opposed to simpler, cheaper solutions—to justify the existence of their role. “Implementing an expensive AI solution is not a silver bullet for every business objective, and companies need to know that,” says Ritu Jyoti, group vice president of automation research at IDC.

5 Key Characteristics of a Good CAIO

If you’ve weighed the pros and cons and decided to create a chief AI officer role, here are five traits that indicate a candidate who’s up to the task:

1. A robust track record in new technology management. Look for a proven track record of leading or participating in successful innovation initiatives and a deep understanding of AI’s ethical and regulatory considerations.

“These experiences should include the integration of machine learning algorithms and other AI-based solutions to enhance data processing, analysis, and utilization,” Jyoti says. “Those efforts should have helped drive innovation and fostered collaboration among business stakeholders while assisting with implementing and optimizing AI-based solutions.”

2. The ability to master the big picture. A good chief AI officer should have extensive experience driving large-scale strategic initiatives and be able to look at the AI strategy from a 30,000-foot view. “A technical degree will be of great help, but a proven track record of implementing mission-critical strategic programs would be a much stronger win,” Beregovaya says.

3. A mix of tech and collaboration skills. A good chief AI officer combines strategic foresight, technical expertise, ethical leadership, and the ability to drive cross-functional collaboration. “This mix of skills ensures that AI initiatives not only succeed technically but also deliver meaningful, long-term value to the company,” says Florin Rotar, chief AI officer at Avanade, a digital, cloud, and AI technology provider in Seattle.

Rotar says his role as CAIO at Avanade is an ongoing learning experience. “I found a strong CAIO must have the ability to align AI initiatives with the company’s overarching business goals,” he explains. “This means understanding the technology and identifying where AI can drive the most value, whether it’s through improving operational efficiency, enhancing customer experiences, or creating new revenue streams.”

4. Deep knowledge of AI technologies and ethics. While strategy is key, knowledge of AI technologies is nonnegotiable. And the right CAIO will prioritize responsible AI, ensuring that AI deployment is aligned with ethical and regulatory standards.

“A good CAIO understands which innovations will make the biggest impact and ensures AI initiatives deliver expected value,” Rotar says. “We are in an era where AI is shaping business operations. In such a scenario, a CAIO must be committed to ethical AI practices.”

5. Experience as a change expert. Implementing AI at scale often requires significant organizational change.

“A good CAIO should have experience in change management, helping to guide the company through the transition and address any resistance that might arise,” Rotar says. “This includes fostering a culture open to AI and encouraging employees to embrace AI as a tool that enhances their roles rather than replaces them.”

Simultaneously, a CAIO should focus on long-term value creation rather than short-term gains.

“This means looking beyond immediate AI projects to consider how AI can sustainably contribute to the company’s growth over time,” Rotar adds. “The CAIO should also be a forward-thinker, capable of anticipating future trends and ensuring the company remains at the forefront of AI innovation.”

Mistakes to Avoid in Your CAIO Hunt

One big error companies make in their search for a CAIO is doing more “chasing” and less analyzing in the rush to find a senior AI decision-maker.

“One of the biggest mistakes is treating the CAIO role as purely technical, overlooking the importance of business alignment, AI tools knowledge, and leadership qualities,” says Mitch Mitchem, AI-human synergy specialist and CEO of HIVE Interactive in Denver.

Don’t look at the CAIO position as strictly an engineering and technical role, he warns. With that mindset, companies too often seek someone with a computer science or data science background and years of technology leadership under their belt. That obviously matters, but a CAIO’s management role doesn’t end there.

“Companies often focus on technical expertise and programming at the expense of strategic vision and change management skills, which are critical for navigating the cultural shifts that AI adoption can trigger,” Mitchem explains.

Another common error: rushing the hiring process.

“Typically, organizations are driven by the fear of falling behind competitors rather than ensuring that the candidate is a holistic fit for the company’s needs and culture,” Mitchem says.

Brian O’Connell is a freelance writer based in Bucks County, Pa. A former Wall Street trader, he is the author of the books CNBC Creating Wealth (John Wiley & Sons, 2001) and The Career Survival Guide (McGraw Hill, 2004).