Value-driven AI Leadership: Rethinking C-suite Roles

As we leap into the fast-paced technological changes, there’s no denying that artificial intelligence (AI) is already playing a pivotal role in shaping our world. From self-driving cars to personalized recommendations, AI is transforming industries and redefining how we work. Amidst this AI revolution, new titles are emerging—Chief AI Officers, AI Evangelists, Chief Data Scientists, Machine Learning Engineers—but let’s pause for a moment. Are these titles merely buzzwords, or do they signify something more profound?

Traditionally, organizations have focused on technology for technology’s sake. We’ve marveled at AI’s capabilities—the ability to recognize faces, predict stock market trends, and even compose music. But technology by itself is like a blank canvas; it can only demonstrate the art of the possible. The real magic happens when we apply it to create business value.

Last year, I had an opportunity to delve into a book titled The Private Equity Digital Operating Partner. It gave me a new perspective and reinforced my thinking that digital business transformation is enabling traditional organizations to disrupt their business models. In the world of Private Equity (PE), the role of an operating partner has long been associated leveraging Lean techniques and operational excellence frameworks to create value and drive EBITDA multiples. However, today’s operating partners are embracing digital and AI as powerful levers to unlock value. And this could be an aspirational growth and career path for tenured C-roles (CDOs, CIOs, CDIOs or whatever we want to call them) in the technology space.

At an executive round table that I had attended sometime back, a seasoned leader was asked about the distinction between the Chief Information Officer (CIO) and the Chief Digital Officer (CDO). Her response was both insightful and provocative: “We have enough value creation opportunities in our business with technology that we could consume any number of C-level titles. But the key is whether the role truly creates value.”

As Shakespeare says what’s in a name or title, but should we call these C-suite role as Chief Digital Operating Partners or Chief Value Officers —a title that transcends hype around AI and has unwavering focus on business value. The role isn’t fixated on algorithms or neural networks; instead, they obsess over outcomes. They understand that AI’s true worth lies in democratizing it within businesses, accelerating revenue streams, enhancing customer experiences, and streamlining operations. The role partners and collaborates with business units, aligns technology investments with strategic goals, and ensures that every AI initiative delivers tangible results.

Leaders in AI roles—whether CIOs, CDOs, or CVOs—need more than fancy titles. They deserve a seat at the table and serious board attention and support. Because value creation isn’t an IT project; it’s a business imperative. When AI initiatives are top-down, well-supported, and integrated into the fabric of the organization, they yield remarkable results. In my experience, this value can translate to 15-18% of EBITDA or more. In many cases it can create completely new business models and revenue streams that can help organizations pivot and build sustainable businesses.

There are enough and more examples of traditional companies that are disrupting business models with AI and these are across industries – Retail, Manufacturing, financial and others. As we navigate the AI landscape, let’s shift our focus. Instead of fixating on the technology itself, let’s champion the value it brings. So, whether you’re a Chief AI Officer, a Chief Value Officer, or anything in between, remember: AI isn’t an end in itself; it’s a means to a valuable future.

 Do share your thoughts!