Is a Chief AI Officer Necessary?
Many CFOs are exploring use cases for generative AI. But some companies have decided to create a new senior management position with enterprise-wide oversight of AI activities—a chief AI officer (CAIO). Is that necessary?
- “Do You Really Need a Chief AI Officer?” is the title of an interesting new report in MIT Sloan Management Review that delves into this topic.
- The authors have experience in analyzing the potential value of CAIOs, and four have been chief digital officers across a variety of industries.
- Some of the pros of having a CAIO is to steer the AI focus and prioritization companywide, which can centralize management of AI risks, and reduce internal deficiencies.
- But there are cons as well.
- For example, adding the position of CAIO can create tension in the existing C-suite with the CIO, CTO, chief operating officer, or the chief digital or chief data officer, according to the report.
- “In organizations where AI can have a major impact on competitiveness, the scales may be tipped in favor of appointing a CAIO,” coauthor of the report, Michael Wade said.
- Read more: Is it time to appoint a Chief AI Officer? Not so fast say experts
