MIT Sloan Management Review Article on Do You Really Need a Chief AI Officer?

The right answer depends on the strategic importance and maturity of AI in your company.

In the rapidly evolving landscape of artificial intelligence, organizations are grappling with how best to harness its transformative power. Some are choosing to create a new senior management position with enterprisewide oversight of AI activities. In March 2024, for example, the Biden administration mandated that all U.S. federal agencies appoint a chief AI officer (CAIO) to oversee AI activities and minimize related risks. An August 2023 survey of 965 global IT decision makers at midsize to large companies found that 11% had already hired a CAIO and a further 21% were actively seeking to fill the position.

This role, meant to drive a cohesive approach to implementing AI across an organization, comes with compelling arguments both for and against its creation. As a group, we have an informed point of view on the potential value of CAIOs; four of us have been chief digital officers (CDOs) across a variety of sectors, including pharmaceuticals, technology, consumer goods, and industrial products and services. As CDOs, we experienced many of the same challenges and opportunities that CAIOs are now facing. Get Updates on Leading With AI and Data

About the Author

Michael Wade is the Tonomus Professor of Strategy and Digital at the International Institute for Management Development (IMD). Anja Lagodny is an IMD executive in residence and was formerly chief digital officer (CDO) at Japan Tobacco International and vice president of digital at Carlsberg. Ann-Christin Andersen is CEO of Norwegian Energy Partners and an IMD executive in residence. She was previously CDO at TechnipFMC. Corinne Avelines is an IMD executive in residence and was previously CDO at AkzoNobel and TomTom. Achim Plueckebaum is chief data and information officer at Bachem Holding and an IMD executive in residence. He was formerly the head of digital, data, and IT for drug development at Novartis.

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