Is your organisation taking the right steps to implement artificial intelligence - or just following the trends?
With each passing day, AI permeates deeper into our day-to-day lives, and the rapid evolution is making its adoption critical for businesses of all sizes. Given its growing status within strategy, is it true that we need a Chief AI Officer in the executive suite?
Recent reports would certainly have you believe so. A widely shared recent study in the UK found that 48% of FTSE 100 companies employ a Chief AI Officer, while over half of respondents of an Amazon survey in Canada worked with one.
Could we really be seeing the CAIO taking its place alongside the Chief Data Officer and Chief Information Security Officer? Let’s investigate whether this trend is right for your business.
A search for 'Chief AI Officer’ on LinkedIn suggests that there aren’t as many people in the role as the above statistics imply. The majority of the CAIOs that appear in the results fall into two categories:
Instead, in enterprises or large organisations, it seems more likely that Chief AI Officers are an expansion of other roles, such as Chief Data or Digital Officer. Given data’s importance in effectively wielding AI tools, it’s no surprise to see this evolution, particularly in businesses where these experts have had limited exposure or influence.
Deni Boncheva, Hays’ Global Head of Data, comments: “Many senior data professionals have struggled to prove their value in recent years for reasons including reporting lines and visibility. Now, as everybody looks to AI to solve our problems, I can understand why some data professionals would like to add AI to their responsibilities as well.”
All this begs the question: why are so many organisations boasting a CAIO? And why is it happening now?
James Hutt at tech consultancy Paradigm Junction can shed light on today’s market: “Lots of senior leaders I speak to want their organisation to adopt AI more quickly but are finding it harder to take action within their existing verticals. The idea of creating a Chief AI Officer is, in some cases, a tangible manifestation of this desire to make change happen, since it moves across verticals.”
Deni points to the innovation S-curve, a graph pattern which illustrates how technology adoption changes over time: a slow start, rapid growth, then plateau as maturity nears. Just before a product’s performance plateaus, innovation drives fresh growth and a new S curve begins.
“With AI, we're at the start of a new innovation curve in data and we know that the growth then happens quickly. I think people are worried and think ‘Oh no! My company will be irrelevant if we don't talk about AI!’ - it is understandable but I personally don't believe that as many companies are seeing the returns as they had believed.”
For those organisations that feel left behind as this curve climbs, it’s tempting to hire a Chief AI Officer. Insights from Hays Salary Guide data collections reveal that 44% of directors and C-Level executives are against the use of AI, primarily due to a lack of understanding or support. As with data, the purpose that AI can serve organisations is cross-functional, rather than limited to your technology team.
Although it’s tempting to make an executive appointment in place to oversee this, there are dangers in doing so without the right framework around them. Of course, buy-in and faith from senior leadership is important, but not the only ones whose backing you’ll require. Artificial intelligence’s benefits and impact will affect all of your people. In order to implement it effectively, you’ll need to bring them on the journey too.
For James Hutt, the pitfalls of external recruitment here are clear: “The real risk with bringing in someone new into a Chief AI Officer role is that they don't really know how the business works. So, making changes, they might be able to bring in new products. However, digital transformation involves changing processes and objectives or moving risks across an organisation. Someone new often doesn't have the levers to do that.”
Besides this, is your organisation’s data architecture in good condition? Deni stresses a Chief AI Officer’s job will depend on the existing data setup: “They are reliant on data to help them drive real change. If you don't have your data sorted, then how are you going to enable your CAIO to achieve the right business outcomes?”
There are challenges when expanding the remit of your Chief Digital Officer or Chief Data Officer, too. Implementing AI fundamentally differs to previous digital transformation, primarily due its cross-functional impact. Many CDOs will be inexperienced in managing such scope. Despite their knowledge, your efforts may hit obstacles when it comes to wider integration without these people receiving the right upskilling.
If you’ve read about the rise in Chief AI Officer jobs and have been concerned about missing one in your organisation, you won’t be alone.
I should also stress that the conclusion here isn’t that a Chief AI Officer doesn’t bring value. In larger organisations that have the structure, data architecture and expertise in place to support one, this role can be an asset. It’s similar for start-ups, who have the advantage of being digital native.
On the other hand, if the above has made you consider whether a CAIO does actually belong in your boardroom, there are alternatives to explore.
Gathering people from across your organisation to have input can have many benefits. This isn’t solely the remit of your Chief Technology Officer, and the diversity of thought and experience you already have is invaluable.
James Hutt reveals: “Companies have had success in bringing together internal working groups, chaired by a senior figure, to select which opportunities to pursue. They've been most successful when led by a senior executive not from a technology vertical, but a P&L (Profit and Loss) vertical. They can learn about AI while bringing in the business understanding.”
This group won’t necessarily have a direct impact. However, their ideas and approaches should be taken into account by decision makers.
Simultaneously, AI skills and expertise needn’t be limited to in house. There are experts out there with experience in digital transformation who can advise you regarding AI’s impact on your organisation, its sector and its customer behaviour. The challenge is in finding one that can truly offer value.
Carry out due diligence by researching consultancies that continue to offer relevant insights, either on social media or through blogs and newsletters. Does this content offer anything new? Has it changed your own view of AI, or is it more of the same?
Explore previous clients – most consultancies would be happy to promote this. Do you think these organisations are facing similar challenges to your own? Would their advice be of value to you and your position?
When assessing their suitability during opening conversations, you’ll need to decide whether they can back up their claims. Given the relative infancy of AI within digital transformation, this can be difficult. James Hutt suggests: “A helpful question to ask might be ‘Why do you think an approach that you have brought to consulting in the past is appropriate?’
“Someone who can help you transform your business should be able to explain how AI differs from previous technology shifts, and why it shouldn't matter that they haven't done this for ten years.”
Which solution is right for your organisation? Don’t lose sight of your most important resources - your people and your data. Whether you hire a Chief AI Officer or not, neglecting to honestly evaluate your current position will hamper your progress. This waste of time, money and effort (as well as possible employee turnover) will cause more harm than failing to follow the supposed trends.
If you’re looking to equip your organisation with the right skills, get in touch with Hays today.
James Milligan Global Head of Technology Solutions
James Milligan is the Global Head of Technology Solutions at Hays, having joined in 2000. In his role, he is responsible for the strategic development of Hays' technology businesses globally.
