Chief AI Officers: The C-Suite Role Driving 10% Higher AI ROI

Chief AI Officers: The C-Suite Role Driving 10% Higher AI ROI

The newest executive role in the C-suite is proving its worth. Organizations with Chief Artificial Intelligence Officers (CAIOs) are seeing 10% greater returns on their AI investments and outperforming peers on innovation by 24%, according to new research from the IBM Institute for Business Value.

The Rise of the CAIO

Only 26% of organizations currently have a CAIO—but this represents significant growth from just 11% in 2023. The research conducted with Dubai Future Foundation and Oxford Economics surveyed over 600 CAIOs across 22 geographies and found that 66% expect most organizations will have this role within two years.

Most telling: 61% of CAIOs control their organization's AI budget, giving them real authority to drive strategic decisions.

When Organizations Need a CAIO

The role becomes critical when companies move beyond AI pilots to enterprise-scale implementation. CAIOs serve as the "glue" holding AI portfolios together, navigating increasing complexity as organizations now use an average of 11 generative AI models and plan to expand to at least 16 by 2026.

Key Responsibilities and Success Factors

CAIOs bridge the gap between business and technology strategy. Their success depends heavily on C-suite collaboration:

• Technology alignment: Working with CIOs and CTOs on enterprise IT strategies
• Data governance: Partnering with CDOs on data quality and analytics
• Security oversight: Collaborating with CISOs on cybersecurity and data protection
• Change management: Supporting CHROs in building employee adoption

Notably, 57% of CAIOs report directly to the CEO or Board of Directors, emphasizing their strategic importance.

The ROI Challenge

Despite the promise, only 25% of executives believe their IT infrastructure can support enterprise-wide AI scaling. CAIOs address this by focusing on three critical areas: measurement, teamwork, and authority—breaking down silos that prevent AI initiatives from delivering measurable business impact.

The research reveals that successful CAIOs don't work in isolation. Instead, they serve as consultants to other executives, with 76% reporting that other C-suite leaders seek their input on AI decisions.

🔗 Read the full research report: IBM Institute for Business Value