Many CFOs are exploring generative AI and some companies are creating a Chief AI Officer (CAIO) to provide enterprise-wide oversight. A CAIO can steer companywide AI focus and prioritization, centralize management of AI risks, and reduce internal deficiencies. Potential downsides include C-suite tension with roles such as CIO, CTO, COO, chief digital officer, or chief data officer, the temptation to pursue AI for its own sake rather than business objectives, and additional costs that may outweigh benefits. Organizations where AI can materially affect competitiveness, particularly technology and financial-services firms that rely on data insights, may benefit most from a CAIO.
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.
Another obstacle: "CAIOs could be tempted to pursue AI for the sake of AI rather than in the service of business objectives," the authors write. And the additional costs of adding a CAIO position may outweigh the benefits. "In organizations where AI can have a major impact on competitiveness, the scales may be tipped in favor of appointing a CAIO," Wade said.
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