Why businesses need one, and what they should look for

The way businesses have used AI for the last decade isn’t the way they’re starting to use it now. AI has been immeasurably helpful for data analysis and predictive analytics. With the rise of generative AI, the focus is on automating other tasks that up to now only humans have been able to do. To stay ahead of the curve, they need chief AI officers to lead the way, focusing on the best ways to forge a successful partnership between humans and AI.

“At first it made no sense to me,” says Luv Tulsidas, founder and CEO of innovation consulting firm Techolution. “You have CIOs, you have CTOs, why do we need chief AI officers? I get it now.”

The skill set needed to direct AI efforts in the future are different because the ways businesses are looking to use it are so different.

“A lot of the people who have built careers based on traditional software logic and compsci are going to struggle to make the shift. They may not have the same roles in this new world of AI,” he told BOSS. “You need somebody who understands the nuances of AI.”

Multiple Skill Sets

With a goal of delivering full-blown, real-time automation, companies can’t simply slide a data scientist or machine learning engineer into the CAIO role. This type of AI is more like a product, Tulsidas said, and as such the AI chief needs a combination of skills.

Luv Tulsidas

“They need to be product-first. What’s the business problem? What do we need to automate? How do we build a great product, and how do we get AI to match that?”

CAIOs do need to understand the nuts and bolts of AI – data science, machine learning, etc. But they also need to understand customers and how to identify problems those customers might have, more like a product developer. They also need to know how to build software.

“A true modern-day AI solution is a combination of all those things,” he said.

An organization’s use of AI must be put toward solving a business problem and driving value, a product management skill.

“That’s what CEOs and boards of companies are looking for. Of course, you have some FOMO and a lot of buzz, but once you get past that what they’re looking for is the promise that AI is going to unlock something for their business.”

The ideal chief AI officer needs the engineering background to understand the technology but also product experience and the emotional intelligence and communication skills to deliver fantastic CX. Like the AI itself, the CAIO is a different animal.

Writing the Future

There’s another key consideration for chief AI officers that might not matter for profitability – at least in the short term – but is absolutely vital for making AI a positive contributor to society rather than something harmful. It’s a strong moral compass, a desire and will to use rapidly developing technology for good.

From a business perspective, there are regulatory considerations. Governments are examining AI closely, trying to balance the public interest with staying ahead of other nations in a tech arms race. Though Tulsidas believes the large-scale incorporation of AI will create new jobs, there will be labor disruptions in the short term. When layoffs come, there will be more pressure from labor groups on government to regulate AI more heavily. There will also be pressure from business interests to push forward with innovation. CAIOs will need to navigate these choppy waters carefully.

“If they don’t have a moral compass and they’re completely rogue, they might get their organization in trouble,” he said.

“What the future of the world looks like with AI is not fully baked yet. It’s being built as we speak. It’s up to today’s leaders to determine whether AI will benefit humanity and businesses alike.”

The biggest risk is AI going rogue, perhaps not Skynet-style, though preventing a Terminator 2 scenario is obviously in humanity’s interest. Even AI giving customers incorrect information about companies or their products could do significantdamage. Enterprises need to focus on solutions that will govern, guide, and control AI, Tulsidas says.

“Your human experts that run your business, that you trust with your business, are in charge and in control. It’s very important to do this right.”

Next Wave

There are many layers of customization beyond large language models to integrate generative AI into corporate systems. The next wave of innovation, Tulsidas believes, will be centered around customer service. While companies are hesitant to unleash gen AI by itself to speak with customers, with the proper guardrails in place and working closely with top customer service agents, it can help provide top-notch service at all times without bouncing people around from department to department.

“It will allow companies to take customer service 24/7 to the next level with this partnership of human and AI. That’s the next big thing that’s being built and deployed as we speak.”

After that will come labor automation, with AI-powered robots triaging in the supply chain, performing healthcare tasks from insurance billing to cleaning rooms, and working in construction.

“When robots and AI come together – and that’s happening, it’s maybe not as mature as gen AI – that is the next big thing that will play out in the coming three to five years. That’s when we’ll see the next level of automation in business.”

While AI will perform a lot of tasks, the important ones need to be overseen by humans. And some of the most important decisions will fall to chief AI officers.