AI in the C-Suite: How Companies are Addressing the Rise of AI with New Talent  

As the technological landscape evolves, companies face the constant challenge to stay ahead of the curve.  Decision-making around AI is the latest challenge (and opportunity) to address. Should there be a total systemic overhaul, funneling cash into AI “investments” and pushing for the bleeding edge of AI-powered tech?  

While there may be much fanfare about AI’s future and how it will impact business (and, frankly, the world), the reality is that any innovation takes time to mature and become useful. During that investment period, organizations that take a moment to lay a foundation for the ideal implementation of this innovation are the ones most likely to be successful.  

Enter the Chief AI Officer (CAIO). 

The Rise of the CAIO Role 

While the title “Chief AI Officer” (CAIO) may sound like something from a sci-fi film, it truly is a rapidly emerging role across the corporate landscape. According to data from Altrata, there has been a steady increase since 2021, with the potential for a true “explosion” to happen as the need for the role becomes more apparent for many organizations. 

In 2021 there were fewer than five newly-created CAIO¹ roles in US listed companies and at least nine new such roles at privately-owned companies in the US. Fast forward to 2023, and those numbers jumped to 11 and at least 19, respectively. And halfway through 2024, we’ve already seen at least seven new CAIO roles at US public companies and nine at privately-owned companies in the US. Looking wider, Altrata currently tracks near to 100 with a directly related AI title in leadership positions or a CAIO role. 

_{Note: Leadership teams are sometimes referred to as the C-suite, executive committees or management boards.
Data current as of July 12th, 2024}

Frankly, we are just starting to answer questions that have never been asked before, and leadership in these areas today will determine our relationship with these tools tomorrow. 

CAIOs in the Organizational Hierarchy

The CAIO role doesn’t always reside in the C-suite. While some organizations have elevated this position to the highest levels of leadership, others have placed it within senior management. This variation often depends on how integral AI is to the company’s core strategy. For some, AI is a fundamental part of their business model, warranting a C-suite position. For others, AI is still an emerging tool, better managed at the senior management level. 

Moreover, many Chief Data Officers (CDOs) and Chief Technology Officers (CTOs) are taking on AI responsibilities. This hybrid approach underscores the evolving nature of AI leadership and the flexibility companies are adopting as everyone learns, at a practical level, how to manage these new capabilities. 

As of July 12th 2024, for instance, Altrata has data on 98 CAIO* roles at listed, private (including private equity-owned) and government organizations, including the individual’s name, organization, sector, and more. Using Altrata-powered insights, organizations can see where these new roles are emerging and make changes according to those trends. 

Infant Trend or Long-Term Role? 

The CAIO role, while increasingly common among organizations, might not be permanent. As AI matures and becomes a standard part of company operations and products, the need for a specialized CAIO might diminish. However, for now, having a leadership role that is grappling with such challenges is crucial, and having a dedicated CAIO can be a big advantage. They play a vital role in navigating the complex landscape of AI integration, ensuring that the technology is implemented effectively and ethically. 

Organizations that invest in a CAIO are now positioning themselves to better understand and leverage AI’s potential.  

Harnessing Altrata’s Insights for Future AI Leadership

For organizations considering the creation of a Chief AI Officer role, having access to comprehensive and up-to-date data is crucial. Altrata provides exactly that—detailed insights into who currently holds CAIO positions in both public and private companies, government and the nonprofit organizations. With Altrata’s extensive data, organizations can gain a clear understanding of the emerging trends in AI leadership and the backgrounds and characteristics of existing CAIOs. 

This invaluable information helps businesses make informed decisions about their AI strategies and leadership needs. By leveraging Altrata’s data, companies can identify potential candidates, benchmark against industry standards, and stay ahead in the rapidly evolving AI landscape. With Altrata, you’re not just keeping up; you’re leading the way. 

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_{^{[1] CAIOs or effectively CAIOs who sit in the leadership team (for example, the role of “VP – AI” within the leadership team)}}

Nick Tymeck is a Senior Director and the Head of Executive Talent Sales at Altrata. He has been working in the industry for more than 8 years and excels in connecting Talent Professionals with top executives and board members. Nick has helped Exec Search firms close bigger deals with more clients, helped them access executive insight to fill more leadership roles and expand their thought leadership advisory work. Nick holds a BS degree in Finance, Accounting, and Economics from the Questrom School of Business, Boston University. He enjoys family time, cooking, traveling, and is a passionate Knicks fan.