This article was originally authored by Built In on March 8, 2024.
A senior executive in charge of AI can help your organization make the most of this technology. Here’s what a CAIO does and how to hire one.
The buzz around generative AI has companies across industries rushing to incorporate this technology to unlock revenue growth, increase user/customer engagement and employee productivity, and stay ahead of competitors.
However, to effectively use AI to its fullest abilities, organizations need a leader who can establish a culture that values data-driven decision-making, craft an AI strategy that aligns with business objectives, and adhere to ethical AI practices and regulatory compliance. Companies are increasingly hiring executives for AI-related positions or moving AI-focused executives to the C-suite, with some adding a chief AI officer (CAIO) to their upper management teams.
5 THINGS A CHIEF AI OFFICER DOES
- Develops AI strategies and teams
- Leads AI research and development efforts
- Manages AI adoption and innovation
- Creates and manages ethical AI standards
- Builds internal and external credibility around AI
As a partner at SPMB, an executive search firm focused on technology and innovation, I have collaborated with startups, tech giants and tech-enabled services businesses on AI-focused executive searches. From my experience placing these leaders, the specific responsibilities and nature of this role can differ depending on the organization’s unique needs, objectives and structure.
A CAIO is an executive who has previously worked as a chief data officer, chief data analytics officer or chief technology officer or has worked in senior management consulting or strategy roles. They possess extensive knowledge and expertise in the fields of AI and machine learning. This leader is responsible for ensuring that AI strategies align with the organization’s overall business objectives and typically reports to a CEO, COO/president, CTO, CIO or chief digital officer.
Here are five key responsibilities for a CAIO.
1 | Developing AI Strategy and Teams
A CAIO is responsible for developing and executing an AI strategy to drive tangible business outcomes and enhance customer or user experiences. They will proactively search for AI innovation opportunities across various products, departments, and functions. Creating a chatbot for customer support or training would be an example of this.
Simultaneously, they will be tasked with building the team by recruiting, developing and retaining the best AI talent, including data scientists, machine learning engineers, AI researchers and AI specialists. Having a high-performance AI team is essential to provide innovative AI solutions to drive business impact. The competition for AI talent is tough, so hiring someone who is a talent magnet and will lean into the recruiting process is important.
2 | Leading AI Research and Development
A core part of a CAIO role is leading AI research and development efforts to explore new algorithms, techniques and technologies to develop and/or enhance the organization’s AI capabilities. Your hire must be comfortable working at super speed and staying up to date with the latest trends and advancements in AI research. The industry is making innovation strides every day.
Before you can focus on AI research and development, you need to have clean data, so you’ll also need a strong chief data officer/head of data onboard before you make this kind of hire. Based on the structure of your organization, this executive can be positioned under the leader or be a peer.
Once all these data efforts are off the ground, the CAIO can monitor and evaluate the performance of AI initiatives, measuring key metrics such as accuracy, efficiency and ROI. The CAIO continuously optimizes AI models, algorithms and processes to improve performance and deliver greater business value.
3 | Managing Adoption and Innovation
Now that you have the models, how do you use them to your advantage? You need to hire someone to oversee the hands-on implementation, integration and productization of these new AI solutions into your existing business processes, systems, workflows and/or products.
This leader will collaborate with cross-functional teams to determine the best use cases to benefit the business. Additionally, this person should ensure a seamless deployment and adoption of the new AI solutions.
Beyond the technology, this leader will be chartered with organizational change and cultivate a culture of AI adoption, innovation and continuous learning. The individual will set an example for others, motivate and enable teams to embrace AI technologies, and effectively deal with organizational challenges.
4 | Creating and Managing Ethical AI Standards
AI offers profound capabilities for reshaping the future that can have a long-lasting positive and negative impact. Therefore, your CAIO must promote ethical AI practices, fairness, transparency and accountability in AI development and deployment. Your company should ensure that the leader in charge of AI systems designs and implements them responsibly, considering privacy, security, and bias mitigation.
Additionally, the CAIO should collaborate with your legal department and CISO to identify and mitigate risks associated with AI initiatives, such as data privacy, security, regulatory compliance and ethical considerations, to protect your company, employees and customers.
5 | Building Internal and External Credibility
This leader will collaborate with external partners, vendors, research institutions and industry experts to stay abreast of AI trends, best practices and emerging technologies. They should be an externally facing leader who actively explores opportunities for partnerships, joint ventures and innovation ecosystems to accelerate AI innovation and adoption.
What to Look for When Hiring a Chief AI Officer:
Hiring a CAIO could be a game changer for companies who are considering integrating AI into their business. Here are five skills essential to the job.
VISIONARY LEADERSHIP IN AI
Because AI innovation is happening at lightning speed, a CAIO should have a deep understanding of AI and machine learning and be hungry to stay on top of the latest advancements and challenges in the field. They should be committed to continuously expanding their knowledge and leveraging AI to drive organizational innovation.
AGILE DECISION MAKING
In the fast-evolving landscape of AI, a CAIO needs the agility to rapidly deploy new technologies and to pivot project directions based on emerging insights. This ability to think and act swiftly will ensure your organization remains at the forefront of AI applications.
PROFICIENCY IN COLLABORATION
A chief AI officer should effectively promote cultural and technical changes in an organization and bridge communication gaps between technical teams and senior management. Their proficiency in collaboration, stakeholder engagement and driving transformation is essential for leading the organization toward a unified AI vision, especially when there may be reluctance or fear of change among employees.
ABILITY TO DRIVE ROI
Successful CAIOs have a proven track record of implementing AI initiatives that significantly benefit the business. They are adept at quantifying and communicating the return on investment of AI projects, thereby illustrating the tangible value these innovations add to the company.
INDUSTRY-SPECIFIC KNOWLEDGE
While not mandatory, possessing experience in sectors where AI has profound compliance and operational ramifications, such as healthcare, government or financial services, can be a considerable advantage. This experience can streamline the adoption and maximization of AI technologies, enhancing their impact and efficiency.
To make the most of this hire, define the scope of the role and find the right type of leader for your organization. This involves considering your goals, industry dynamics, cultural factors, the current state of your data and the level of AI development and adoption.
The most successful chief AI officers have successfully combined their technical and AI expertise with business/operational skills.
