AI for Humans
NC, USA
The CEO plays a crucial role in driving the AI strategy and ensuring it aligns with the core business objectives, thereby delivering a competitive advantage. Their involvement, which accounts for nearly 23% of AI-related decisions, positions AI as a strategic imperative for the business rather than merely a technological project. As the primary advocate for AI, the CEO is responsible for unlocking its full business value while maintaining customer trust and ensuring its responsible use.
Concerns about reputational damage from AI failures—such as bias, data loss, or hallucinations—are paramount, as is the need for regulatory compliance and the establishment of a formal operating model for Enterprise AI. While this high-level strategic involvement is essential, it can create a disconnect with operational realities. A Thomson Reuters survey highlights this "AI Adoption Gap": 85% of C-suite leaders consider AI transformational, yet there is a significant disparity in actual employee adoption of AI tools and the training provided.
The Chief Technology Officer (CTO) and Chief Information Officer (CIO) are key technology strategists in an organization. The CTO focuses on innovative, future-facing technology, while the CIO manages current IT infrastructure and security. Their influence in AI decision-making is significant, with the CTO contributing to 21.7% of decisions and the CIO 14.4%, reflecting a crucial partnership between business and technology.
Their priorities include system reliability, security, scalability, and budget management. They select AI tools, assess data readiness, and manage vendor relationships. Key concerns include technical complexity, cited as a barrier by 89% of decision-makers, as well as data security, vendor lock-in, and implementation costs.
The board oversees AI governance, with a focus on long-term shareholder value and risk management. They emphasize balancing innovation with risk controls and are particularly vigilant about data privacy, regulatory compliance, and clear ROI, requiring a solid governance framework before broader AI deployment.
The role of the CFO has evolved from merely overseeing budgets to becoming a strategic advisor on AI investments and other key business initiatives. Although there is significant pressure to adopt AI technologies, CFOs must ensure that every investment is justified with a thorough business case. This involves evaluating projects through the lens of capital budgeting techniques, such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period, in addition to assessing risk management.
The Chief Data Officer (CDO) is vital to enterprise AI initiatives, as an organization's "AI readiness" is closely tied to its "data readiness." With 82% of enterprise data siloed and 68% unanalyzed, the CDO's evaluation can significantly impact a project's success.
The questions we love to ask executives are:
These types of questions reveal what the C-Suite is thinking. The next several ones are designed to understand their level of readiness:
In the past, most company leaders struggled to answer these questions. Today, a greater number can confidently provide responses that demonstrate they have invested time in learning and preparing their organization for the strategic disruptions posed by AI.
There is a notable difference between companies that quickly achieve returns from Enterprise AI and those that face challenges. This difference stems from the executives.
Leaders who recognize that their roles have evolved and who embrace the disruption of traditional business practices can effectively champion digital transformation, resulting in measurable business value. Conversely, those who view Enterprise AI as the responsibility of only the tech team or confine it to specific departments are losing significant amounts of money through ineffective initiatives.
Enterprise AI begins not with requests for proposals (RFPs) or meetings with vendors but with a clear vision from the executive team led by the CEO. This initiative uses business language to establish goals and only seeks technical expertise after the vision has been clearly defined.
The next step is to understand change management. Business as usual is no longer an option, as we are on the verge of a significant transformation in how people work and what companies can achieve. We are already witnessing a 75% reduction in unnecessary human tasks.
C-suite executives who thrive will embrace this change and educate themselves on how to manage it effectively. Those who merely aim to survive may become familiar with the process but will often delegate most of the work to outside vendors. Meanwhile, those who take no action may soon find themselves searching for new jobs in the coming year.
