In the age of AI, the role of CAIO will be indispensable (and here’s why)

In November 2022, AI experienced a paradigm shift from a technology evolving in the background to a front-end disruptor. Today, we have already reached the next phase of generative AI, with consumers embracing the technology and organizations beginning to invest at scale.

Today’s generation of AI will fundamentally change the way businesses operate and thrive. In other words, it will transform work, especially that of knowledge workers.

Organizations that emerge from this period of disruption as leaders will take a holistic approach to seize new value opportunities and empower their people.

It’s been six months since I became Vice President of AI and Digital Innovation at KPMG US, our version of the latest leadership role: Chief AI Officer (CAIO). The last six months have been marked by successes and challenges, but one thing my experience has confirmed: an empowered and accountable leader at the C-suite is essential to pursuing bold, fast, and responsible AI.

Many have asked me if this role should be filled by an established technology leader, such as a CIO, CTO, or CDO. My answer is simply, “No.” There’s no doubt that technology leaders play a critical role, but the scale and pervasiveness of how next-gen AI will change the way we work and live requires a new visionary who can balance technical understanding with business acumen, strategic foresight, and innovation.

While disruption may be overrated now, it is not overrated in the long term. This role requires someone who understands both the disruptive nature of gen AI and how to mobilize an entire enterprise. As organizations move beyond pilots and use cases to industrialize the technology across functions and entire enterprises, I share three lessons learned from my experience.

Establish governance that allows you to be bold, fast and responsible (all at once)

With the rapid pace of adoption and rapidly evolving regulations, companies are grappling with how to advance their AI strategies safely and ethically. The first task for a new CAIO? Establish AI trust guardrails—not speed bumps—on the AI ​​highway to set the tone for those who follow.

CAIOs should ask themselves three key questions as they begin to mobilize their governance programs: Can you identify all the places where AI is being used in your organization today? Do you have a responsible use policy governing AI use and someone in charge to oversee it? And do you have an effective approach to monitoring and managing your policy and controls?

At KPMG, we launched our AI Framework in October and established our AI Trust Council to guide decision-making and help us stay vigilant about AI’s potential. We’ve based our principles on 10 ethical pillars, ranging from sustainability and security to fairness and privacy. While every company has its own approach to building and deploying AI, a strong approach to governance is needed to enable companies to move quickly and innovate boldly.

Put AI in the hands of your employees

More than half of consumers say next-gen AI has a significant impact on their work lives today, and even more believe it will have a significant impact on their work lives two years from now.

These numbers increase dramatically for younger generations. However, for many, the jury is still out on the issue. how This will change their professional lives. The unknown can be daunting, but familiarity breeds comfort. Organizations can help ease employees’ fears by empowering them with next-generation AI through safe, secure systems and providing training and development.

But more importantly, accessibility at scale is key to innovation with generative AI. A top-down approach to use cases is unlikely to identify the most compelling opportunities, whether that’s a new product, a new business model, or a massive productivity gain. We’ve found that some of the most compelling use cases have come from our employees who have been trained on the tool over the last year.

The good news is that companies are eager to help their employees, and many have already implemented – or are planning to implement – ​​mandatory gen AI training. The success of an AI strategy will depend on how prepared your workforce is. CAIOs must have the authority and influence to mobilize their organizations, from everyday knowledge workers to their executive peers and the board. The need for a comprehensive change management and communications strategy cannot be understated.

Strike while the iron is hot or you risk being overtaken

Cutting-edge technology has a certain consistency: it doesn’t stay static for long. Next-generation AI has taken off faster than any other commercial technology in modern times, and companies that move decisively will enjoy significant first-mover advantages.

In this time of disruption, companies that embrace AI are likely to come out on top. Those that are slow to evolve may struggle to keep pace with their more agile competitors. The “fast follower” advantage has diminished with other recent technological advances, and we may see it disappear altogether with the AI ​​generation. For CAIOs, this represents both a huge challenge and an opportunity to lead their organizations into the future.

Steve Chase is Vice President of AI and Digital Innovation at KPMG.