Chief AI Officers cut through complexity to create new paths to value

Expectations for enterprise artificial intelligence are sky high. Executives are asking people to adapt quickly and setting big goals for AI innovation at scale. Value has taken center stage—and the spotlight is on ROI.

A growing number of organizations have created the role of Chief Artificial Intelligence Officer (CAIO) to provide AI leadership and accelerate AI-related business outcomes. And many CAIOs are already driving incremental value and delivering on business goals.

To learn more about this emerging role, the IBM Institute for Business Value (IBM IBV), in collaboration with Dubai Future Foundation (DFF) and Oxford Economics, surveyed more than 600 CAIOs across 22 geographies and 21 industries in the first quarter of 2025.

Overall, we reached out to more than 2,300 organizations, but only 26% said they currently have a CAIO. This is up from just 11% in 2023. 57% of these CAIOs were appointed from the organization’s internal talent pool—and 66% expect most organizations will have a CAIO within the next two years.

CAIOs have a mandate to drive real progress. They’re tasked with defining their organization’s AI strategy, directing the implementation of AI technologies, managing AI budgets, and developing change management strategies for AI adoption.

It’s a high-impact job—with the potential to deliver big dividends. Organizations with CAIOs see 10% greater ROI on AI spend and are 24% more likely to say they outperform their peers on innovation.

CAIOs help organizations deliver higher AI ROI.

When does an organization need a CAIO?

CAIOs we surveyed say the CAIO role was created for two main reasons: to drive AI strategy and to accelerate AI adoption. They spur and lead AI and intelligent automation conversations at the highest levels while transforming the work happening on the ground. They’re the visionaries directing AI-powered change. And the glue that holds AI portfolios together.

When organizations are piloting AI projects, this glue is less critical. But when it’s time to turn pilots into enterprise-level AI investments, someone needs to define a clear direction on the use of AI, drive portfolio-level decision-making, and keep teams focused on shared goals.

One critical CAIO responsibility is navigating complexity. Today, a typical organization uses 11 generative AI models—and plans to use at least 16 by the end of 2026.

61% of CAIOs control their organization’s AI budget.

What do CAIOs need to succeed?

No leader is an island—and this is especially true for CAIOs. They exist to bridge business strategy and technology strategy, funneling time and energy toward a shared goal: delivering value with AI.

But CAIOs can’t deliver on their broad mandate alone. In fact, partnering with other C-suite stakeholders is the only way they can get their job done. They need the Chief Innovation Officer (CIO) and the Chief Technology Officer (CTO) to keep AI, enterprise IT, and technology strategies aligned. They need to collaborate with the Chief Data Officer (CDO) on data strategy, data quality, AI governance, and analytics. They need the Chief Information Security Officer (CISO) to address data vulnerabilities and cybersecurity threats. And they need the Chief HR Officer (CHRO) to help build employee support.

Similarly, CAIOs should be a resource for the rest of the C-suite—76% say other CxOs consult with them on AI decisions. By actively collaborating across the C-suite, the CAIO can align the AI strategy with business, technology, innovation, security, and talent strategies, focusing enterprise efforts on a shared set of AI-driven outcomes.

57% of CAIOs report directly to either the CEO or the Board of Directors.

How can CAIOs deliver higher AI ROI?

CAIOs are at the center of the organization’s AI nervous system. From this vantage point, the CAIO can accelerate AI transformation, keep use cases aligned to strategy, and help prioritize the AI tools, AI systems, AI applications and other advancements most likely to give the organization a competitive advantage.

However, this system only works when technology is fully integrated—and only 25% of executives strongly agree that their organization’s IT infrastructure can support scaling AI enterprise-wide. What’s more, organizations need to connect the dots around shared business objectives, with teams working toward the same objectives.

CAIOs can address these challenges by breaking silos and barriers and backing key AI initiatives. In fact, our research points to three key areas where CAIOs who deliver greater measurable business impact with AI solutions focus their attention: measurement, teamwork, and authority.

The sky’s the limit

Download the full report for more data and insights that demonstrate how CAIOs can cut through complexity—and an action guide that outlines the next steps specific leaders within the C-suite can take to deliver more business value with AI.