Back in October 2023, Foundry’s AI Priorities study found 15% of large companies had appointed a Chief AI Officer (CAIO), with an additional 24% actively seeking one. Over a year later, and those figures have almost certainly grown, but the landscape is shifting.
AI’s potential to drive new revenue streams is leading organisations to invest in standalone AI functions and appoint dedicated AI executives. However, many companies are also embedding AI responsibilities within existing C-suite roles. Depending on the size of the organisation, its data maturity, and the sector it operates in, these are typically the CIO or CDO positions.
The Rise of Embedded AI Leadership
As a global executive headhunter, we are seeing an evolution rather than an outright surge in CAIO appointments. AI leadership roles are increasingly integrated into the Chief Data Officer (CDO), Chief Information Officer (CIO), and Chief Technology Officer (CTO) functions.
Companies with extensive data assets and strong customer engagement strategies are prioritising AI adoption, but they are also ensuring it is commercially viable. Rather than treating AI as an isolated function, businesses are weaving it into existing leadership frameworks to drive operational and strategic outcomes.
The Forces Driving AI Leadership
Two primary factors are shaping this shift: the commercial pressure to capitalise on AI’s potential and the increasing expectation from technology vendors to innovate or risk obsolescence. While AI adoption was initially driven by a wave of generative AI experimentation, organisations are now seeking more structured, results-oriented implementation.
Boards are becoming more aware of AI’s strategic importance and are moving beyond early-stage pilots toward initiatives that generate clear competitive advantages. As a result, AI leadership roles are evolving to focus on commercial, operational, and customer-driven outcomes rather than just technological capability.
AI Executives in the CDO Function
AI officers within the CDO function primarily focus on the strategic development, management, and use of data as a vital organisational asset. Their main objective is to generate business value through AI integration in products and services.
Crafting unique data assets that align with specific business needs and facilitating AI-driven process automation and predictive analytics is central to the role. Additionally, they are often tasked with establishing robust data governance and fostering a culture that prioritises data-driven decision-making, with a strong emphasis on data integrity and compliance.
Their divergence from AI officers under the CIO comes from their direct engagement with data as a strategic business asset. Integrated into the CDO function, an AI officer usually leads a central hub of AI expertise, coordinating with satellite teams across various business units to spearhead the integration of AI into products and services.
AI Executives in the CIO Function
AI executives within the CIO function, on the other hand, concentrate on embedding AI into IT frameworks to enhance operational efficiency and security. Their focus is on leveraging AI to optimise internal processes, strengthen cybersecurity, and enable technology-driven innovation.
Unlike their CDO function counterparts, they are less involved in data governance and more focused on applying AI in real-time business operations. They work to integrate AI across enterprise IT systems, ensuring AI solutions align with broader technology strategies and infrastructure improvements.
Typically, this places the AI officer and their team centrally within the IT department, somewhat distanced from direct business application involvement. Crucially, we see effective AI leadership within the CIO realm hinge on several prerequisites: a substantial data reservoir, a well-organised data environment, and the capability to transform that data into actionable insights.
The Emergence of Board-Level AI Executives
A growing number of organisations are also establishing board-level AI leadership roles, underscoring AI’s importance as a transformative force. A CAIO operating at this level is responsible for developing and executing a comprehensive AI strategy across all departments.
This role requires deep technical expertise, strategic foresight, and strong leadership capabilities to drive AI adoption at scale. Companies appointing standalone CAIOs are positioning AI as a fundamental pillar of their corporate vision and long-term growth strategy.
The Maturation of AI Product Ownership
As AI product ownership matures, it is emerging as a specialised function within AI leadership structures. Rather than simply pursuing efficiency gains, companies are prioritising AI tools that deliver tangible business value and directly contribute to revenue growth.
The shift from experimentation to structured AI implementation reflects a broader transition toward value-driven adoption. AI leaders are expected to secure executive buy-in, identify practical use cases, and rigorously test AI investments against their impact on the bottom line.
Overall, the level of AI investment and the organisational approach depend on sector-specific maturity, appetite for disruption, budget availability, and clearly defined value cases.
The Future of AI Leadership
For organisations that continue to appoint dedicated CAIOs, the role demands a unique mix of technical expertise and strategic leadership. AI executives must navigate the complexities of AI integration while managing ethical considerations and regulatory requirements.
They play a crucial role in educating boards and senior leadership teams on AI’s potential, ensuring AI initiatives align with business objectives. As AI governance becomes more stringent, the need for well-defined AI leadership will only grow.
Ultimately, the rise of AI leadership reflects a global imperative to harness AI for competitive advantage. While standalone CAIO positions remain relevant, many organisations are opting to embed AI responsibilities into existing C-suite roles.
Whether operating within the CDO, CIO, or as an independent board-level function, AI leadership is becoming an essential component of enterprise strategy. As AI continues to evolve, companies that integrate AI leadership effectively will be best positioned to leverage its full potential.
