A chief AI officer could be key to AI success

Realising value from AI is more than just technology, it requires strategic direction and a single role may be needed.

Appointing a chief AI officer (CAIO) may help organisations improve AI adoption and move from pilots to delivering real value, according to a new Datacom report.

Because AI touches every function, the CAIO needs to be a transformation role, not a technical one to coordinate change across the entire organisation. It should help organisations move from scattered adoption to deliberate, whole-of-organisation adaptation.

“Appointing a CAIO can’t just be a title change. The role needs to help the organisation move from pockets of AI activity to a clear, coordinated approach – with the right governance, executive alignment and business ownership in place,” said Lou Compagnone, director of artificial intelligence at Datacom.

“AI success depends on more than technical delivery. The CAIO needs to help set strategic direction, bring leaders with them and make sure the organisation understands where AI can create value, how risk will be managed and what needs to change to get there,” Compagnone said.

The public sector is leading the way, with every department and agency expected to have appointed a CAIO this year after the Government established a new senior leadership position across the public service in recognition of the fundamental shift generative AI is bringing to government operations.

Compagnone said the public sector mandate is an important signal that AI governance needs clear ownership. “How agencies define and empower the CAIO role will help set the standard for responsible AI leadership, and those expectations are likely to influence organisations well beyond government," she said.

Already, 42 percent of surveyed organisations have a CAIO or equivalent in place, with a further 21 percent expect to appoint one within twelve months, Datacom’s April survey of 507 Australian IT and business leaders found.

Yet 32 per cent of those surveyed don’t have a CAIO and are not planning to appoint one in the immediate term because AI responsibility sits with the CTO/CIO or there’s a lack of need or uncertainty about the role.

Compagnone said these mixed responses indicate the role is far from settled, with organisations continuing to debate reporting lines, scope, ownership and mandate. Organisations most likely to realise value must align leadership, strategy, governance, capability and execution around a clear vision for change.

“Technology alone won’t determine whether organisations succeed with AI. The CAIO has an important role to play in bringing leadership teams together around a clear strategy, so AI initiatives don’t stall or remain disconnected from the broader business,“ she said.