The Rise of the Chief AI Officer: Why Businesses Are Embracing a New Era of Leadership – ITP.net

ITP.net
Home » AI & Automation » The Rise of the Chief AI Officer: Why Businesses Are Embracing a New Era of Leadership

A year ago, the title “Chief AI Officer” (CAIO) was largely absent from corporate hierarchies. Today, it’s quickly becoming a fixture, and in the UAE, around 33 per cent of organisations have already appointed someone to the role, according to interim findings from IBM’s ongoing research with the Dubai Future Foundation.
The increase in the CAIO role signals a fundamental shift in how organisations are approaching artificial intelligence, says Shukri Eid, General Manager of IBM Gulf, Levant, and Pakistan. “AI isn’t just another tech initiative anymore, it’s becoming integral to how companies operate, compete, and grow,” he explains.
Across industries, the urgency to harness AI at scale has pushed companies to rethink their leadership structures. No longer confined to the IT department, AI now touches strategy, operations, customer experience, and governance. As a result, companies are realising they need senior leadership solely focused on navigating AI’s complexities and opportunities.
The creation of the Chief AI Officer role reflects the growing realisation that AI, when deployed thoughtfully, can reshape entire business models, but without clear ownership, it often stalls.
Organisations needed a leader who could bridge technical and business domains, maximising the value of AI investments while managing risks, ethics, and operational impact. “It’s about having someone accountable for ensuring AI doesn’t just sit in a lab or pilot phase but becomes a part of the organisation’s DNA,” Eid says.
The trend is gaining momentum globally too. IBM studies have shown that 57 per cent of CAIOs have direct accountability to either the CEO or the Board of Directors. This is a pattern mirrored in the UAE, where approximately 52 per cent have a direct line to the top. This level of access to leadership isn’t just symbolic; it’s a critical enabler for turning AI ambition into execution.
“When CAIOs are empowered to work closely with the CEO, it speeds up decision-making, resource allocation, and organisational alignment around AI initiatives,” Eid notes.
Stepping into the CAIO role requires more than just technical expertise. Eid stresses that while a solid grasp of AI technologies is essential, the real differentiator is understanding the business inside and out.
“It’s not necessary for a CAIO to be the most technical person in the room; that’s where CIOs and technical teams come in,” he says. “But they do need to be savvy enough to make strategic calls about technologies, trends, and timing.”
Equally important is commercial intuition: knowing which AI use cases will genuinely move the needle, and which investments will deliver sustainable returns. CAIOs must also have the ability to collaborate externally, tapping into ecosystems of partners, startups, and academia to stay ahead of fast-moving innovation.
“No one can build an AI empire alone,” Eid adds. “Successful CAIOs are those who can connect the dots both internally and externally.”
One of the key challenges for companies experimenting with AI has been scaling beyond isolated pilots. Too often, promising projects stay stuck in testing phases without delivering material value.
According to Eid, scaling AI requires a deliberate, disciplined approach. Companies must balance quick wins with longer-term bets, establish clear governance frameworks, and secure cross-functional buy-in early on.
“Scaling AI isn’t just about technology — it’s about getting your CFO on board, ensuring business heads are willing to open up their data, and being clear about your risk appetite,” he says.
He also warns that ignoring the data infrastructure needed for AI can doom even the best models. In his view, successful AI initiatives start small but build toward systemic change, transforming not just processes but mindsets across the organisation.
For companies considering the appointment of their first Chief AI Officer, clarity from the outset is crucial. Eid advises organisations to define the CAIO’s mission and success metrics clearly, and to provide strong leadership sponsorship. “Without a clear vision for ROI and executive support, even the best CAIOs will struggle to drive real change,” he cautions.
Beyond technical capabilities, companies must ensure their CAIOs are equipped with the influence, budget, and authority needed to act decisively. AI’s potential to unlock value is enormous, but only if it is embedded at the highest strategic levels, not relegated to isolated innovation labs.
The rise of the Chief AI Officer marks a new era where AI leadership is no longer optional but essential for businesses that want to stay competitive. As AI reshapes industries from finance to healthcare to retail, companies that invest in strong, visionary AI leadership today will be best positioned to lead tomorrow.
“Organisations that empower their CAIOs with the right mandate and vision,” Eid says, “will be the ones that thrive in an AI-driven future, while others risk being left behind.”

Subscribe to receive the latest tech news & views in Middle East & Africa

Sign up to our newsletter

source
This is a newsfeed from leading technology publications. No additional editorial review has been performed before posting.