A chief AI officer (CAIO) is a senior leader in a company responsible for overseeing and guiding the use of artificial intelligence. This role was created as AI became more important for businesses wanting to use advanced technologies to improve operations, make smarter decisions, and gain a competitive edge.

The chief AI officer (CAIO) is a new role created as AI becomes a bigger part of business plans. When a company hires a CAIO, it shows they’re serious about using AI to improve their work, likely with big projects already happening.

Many companies have explored AI for years, but tools like ChatGPT have shown just how valuable AI can be in all kinds of businesses. Now that more companies are using AI in complex ways, the role of CAIO is growing quickly. 

In fact, LinkedIn shows there are almost three times as many CAIOs now than five years ago. Also a recent research from Foundry reveals that 11% of midsize to large organizations already have someone in this role, and an additional 21% are currently looking to fill it.

The CAIO isn’t just there to help companies use AI but also to handle the risks it brings. Large AI projects come with tough questions about what’s right and wrong and must follow strict rules. CAIOs need strong technical skills and a good strategy, while also helping their companies deal with changing laws and the ethical issues that come with AI.

What are the duties of a CAIO?

A CAIO is the go-to person for making sure AI is used in a smart, safe, and effective way across the organization.

The CAIO’s main duties typically include:

1. Developing AI Strategy: The CAIO creates a vision and plan for how AI can support the company’s goals. This includes deciding which AI projects to pursue and ensuring they align with the company’s overall strategy.
2. Overseeing AI Projects: They manage teams and resources to make sure AI initiatives run smoothly and deliver the expected results. This might involve areas like customer service, data analysis, product development, or improving business processes.
3. Managing Risks and Ethics: Since AI projects can involve sensitive data and ethical concerns, the CAIO also handles these areas. They ensure the company follows legal and ethical standards, especially in areas like privacy and fairness.
4. Navigating AI Regulations: As laws and regulations for AI use develop, the CAIO makes sure the company complies with all the necessary rules, which vary by region and industry.
5. Building AI Skills in the Company: They may also work on developing AI knowledge and skills among employees, preparing the company for a future where AI plays a larger role in business.

Where the CAIO fits in the C-suite

The Chief AI Officer (CAIO) holds a crucial role within the executive team, typically reporting directly to the CEO or a senior officer, depending on the organization’s structure. This position signals the company’s dedication to making AI a strategic priority and aligns AI initiatives with broader business objectives.

In some companies, the CAIO operates within a central technology or science organization, collaborating with multiple business segments. This setup allows the CAIO to integrate AI into key areas of the business, ensuring that AI efforts enhance core offerings. Having experience in developing foundational AI technologies, these CAIOs are well-positioned to guide impactful, product-level AI solutions that directly benefit the organization’s main products or services.

In other cases, the CAIO reports directly to the CEO, emphasizing the strategic importance of AI within the company’s overall direction. These CAIOs often have significant autonomy over AI budgets, enabling them to set a clear, data-driven roadmap for AI investments. 

This autonomy allows the CAIO to make strategic decisions about where AI resources are best allocated, maximizing their contribution to growth and innovation. Working closely with other leaders, the CAIO ensures AI initiatives align with the company’s strategic goals while also having a direct impact on operational execution. Their teams often pilot AI projects internally, refining solutions before scaling them organization-wide.

In essence, the CAIO’s place in the C-suite offers a unique combination of strategic influence and hands-on implementation. Whether reporting to the CEO or another top executive, the CAIO plays a central role in ensuring that AI supports both innovation and operational success.

Skills of successful CAIOs

A successful CAIO combines a unique blend of technical expertise, strategic insight, and leadership skills. With AI playing a transformative role in many industries, a CAIO must have a solid technical foundation in AI to guide complex initiatives effectively. However, technical knowledge alone is not enough; they also need strong business acumen to align AI projects with the company’s goals and deliver measurable value.

Leadership is another essential trait, as CAIOs often lead cross-functional teams and drive collaboration across the organization. Their ability to communicate complex ideas in clear, accessible language is vital for gaining buy-in from other leaders and ensuring that AI initiatives are well-integrated into broader business operations. 

A successful CAIO also brings a high level of ethical and legal awareness, recognizing the unique challenges AI presents. They understand the ethical and regulatory considerations of deploying AI, ensuring compliance with laws and guiding responsible AI practices. 

Beyond skills, certain traits set outstanding CAIOs apart. They are passionate about using AI to drive innovation and efficiency, with a proven record of leading impactful AI projects.