The most powerful AI job in the market may ultimately prove to be a mere symbolic position.

• The acronym CAIO, which stands for chief artificial intelligence officer, has been added to the mix of C-suite acronyms.
• The number of companies worldwide with a "Head of AI" position has more than tripled in the past five years.
• Appointing a chief AI officer without the necessary qualifications and experience can be detrimental to the success of the organization.

The term "C-suite" has evolved into a unique language among its members. Now, a new four-letter acronym, "CAIO," has emerged as a popular title in various industries, including eBay and the U.S. Department of Defense.

The number of companies with a "Head of AI" position globally has more than tripled in the past five years, and has grown by 13% since December 2022, according to LinkedIn's latest report on AI at work. Meanwhile, more than a quarter of leaders say the CAIO is the most urgent hiring priority when preparing for the future, lagging only behind a range of engineers and AI research scientists, according to Alteryx's Enterprise of the Future report.

Although there is an increase in the number of executives, including CAIOs, acknowledging the importance of AI, assigning the title of chief AI officer without the necessary foundation can cause more harm than good.

Nick Elprin, CEO of Domino Data Lab, a platform that centralizes the work of AI- and data-forward companies, highlights two common pitfalls when integrating a CAIO into an organization.

"Elprin stated that the issue he frequently encounters is the mismatch between the expectations and responsibilities placed on the chief AI officer and their corresponding level of authority. As a result, the individual becomes a mere figurehead who is asked for advice but lacks the ability to influence their own fate."

Elprin stated that the second issue is hiring a candidate with limited technical skills for the role of a chief AI officer.

Prag Mishra, the Chief AI Officer of Armada, emphasizes the importance of CAIOs being able to explain AI in simple terms to other decision-makers. He believes that senior management must comprehend the implications of using AI in order to make informed decisions. Mishra stated, "The understanding of AI's implications must be clear across the entire senior management."

Not all organizations are capable of fulfilling the CAIO role.

According to Elprin, large, multinational organizations and those with federated, self-contained business units may not require a CAIO because they are doing so much on their own.

Sol Rashidi, data and AI strategic advisor and former C-suite executive, believes that some organizations are too small for a CAIO. "I don't think it requires the gravity of such a role," she said. Instead, these small, AI-centric companies may benefit from an overarching CXO that manages the end-to-end process.

As AI becomes more integrated into all types of organizations, the lack of suitability is likely to change.

Mishra stated that while it is not necessary for all companies to have a CAIO at present, they will increasingly require someone to champion AI practices at the top as they transition into data-driven and AI-driven organizations. He predicts that the need for an AI executive will rise significantly over the next few years to a decade.

The end use of AI

Experts suggest that there is a valid reason for using both a CAIO and AI.

Rashidi stated that the purpose of AI is not just for the sake of AI.

The CAIO's primary objective is to contribute to the end goal or bottom line by understanding how AI can be used effectively, Mishra said. He added that while there is pressure from boards to use AI, it is important to measure the impact of the CAIO through quantifiable assessments to ensure a purposeful mission.

A CAIO cannot act alone as there are many dependencies on peers and other executives. To have a truly transformational impact, a CAIO must learn to work collaboratively with other teams. Mishra emphasizes that it is crucial for a company to place CAIOs in close proximity to their peers in the organizational structure.

The division of labor between closely related C-suite roles, such as the CAIO, chief information officer, and chief technology officer, can lead to friction and turnover if there are overlapping decision areas. However, this does not mean that a hierarchical escalation process should be used between executives, as this can be a thin line to walk.

AIOs should collaborate with CROs and CCOs to ensure responsible AI building, AI safety, and governance practices are in place.

Rashidi, who was the go-to-market leader for IBM Watson after the natural language processing computer beat Ken Jennings and Brad Rutter on "Jeopardy"! in 2011, emphasizes that deploying AI use cases requires a CAIO who possesses both practicality and creativity. This entails striking a balance between high intelligence and emotional, social, and business acumen.

The CAIO of the future

Although the CAIO role is still new, experts agree that an evolution is inevitable. Rashidi stated that while someone needs to be responsible for evangelizing AI solutions, the ownership of development or strategy is yet to be determined. However, having someone who is obsessed with pushing AI solutions to completion is highly appreciated by C-suites who are already overwhelmed with their own strategic priorities and often work long hours of 60-100 hours per week.

Mishra believes that the letter C in his CAIO role, which stands for "chief," is not the most important aspect of the position. However, he emphasized that someone in this role must be highly responsible for overseeing the implementation, deployment, and impact of the technology.