- Aishwarya Wagle
- 664
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AI & ML
Image Courtesy: Unsplash
Data and AI are transforming businesses, but there’s one big question organizations can’t seem to answer: Who should be leading the charge? The roles of chief data officer (CDO) and chief AI officer (CAIO) are evolving, but their mandates, responsibilities, and reporting structures remain unclear. Some companies separate the roles, while others consolidate them under broader leadership. The only certainty? The demand for strong data and AI leadership will only keep growing.
The Rise of Data and AI Leadership
A decade ago, only 12% of organizations had appointed a chief data officer. Today, that number has jumped to 85%, reflecting the growing recognition of data as a critical business asset. Additionally, 33% of companies now have a chief AI officer, signaling AI’s increasing role in business strategy. While these leadership positions are becoming more common, organizations are still figuring out how to best integrate them into their structures.
A Role Still in Flux
Despite the rise in appointments, data and AI leaders continue to face challenges. Less than half of chief data officers describe their function as well-established, and only 51% believe their role is clearly understood within their company. The responsibilities of CDOs, CAIOs, and other tech executives are still being defined, leaving many organizations unsure of how to structure leadership for maximum impact.
Separate Leaders or Unified Tech Leadership?
Some companies, like Capital One and Cleveland Clinic, have placed chief AI officers alongside CDOs, treating them as peers. Others believe that combining data and AI leadership under a single chief data and AI officer (CDAO) is a more efficient approach. There’s also a growing argument for “supertech leaders”—executives who oversee all technology functions, streamlining decision-making and reducing role confusion. The best approach likely depends on an organization’s size, priorities, and level of digital maturity.
Where Should Data and AI Leaders Report?
Leadership placement is another point of debate. 36% of data and AI executives report directly to the CEO, president, or COO, reinforcing the idea that these roles should be business-driven rather than purely technical. Some experts argue that data and AI leaders must focus on delivering measurable business value, not just managing technology. However, others feel that too many tech-focused executives make collaboration difficult and dilute strategic focus.
What Comes Next for Data and AI Leadership?
One thing is clear: the need for strong data and AI leadership is only increasing. Organizations must clarify responsibilities, align leadership with business goals, and ensure data leaders have the influence they need to drive transformation. Whether companies choose separate CDOs and CAIOs, merge the roles, or opt for a broader tech leadership model, they must make sure that those leading data and AI are as valued as the data itself.
