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As the enterprise landscape evolves, the role of the CIO has shifted from a traditional technology management role to a critical strategic advisor within the boardroom. With the acceleration of generative AI initiatives, CIOs are increasingly called upon to navigate complex technology landscapes, bridge knowledge gaps for executive teams and provide guidance that aligns AI strategy with broader business objectives.
Overall, 88% of CIOs say their role is becoming more digital and innovation focused.
– Foundry, State of the CIO Survey 2024
As artificial intelligence becomes a focal point in boardrooms worldwide, many enterprises are still grappling with the shift from experimentation to industrialization. The path to widespread AI adoption is often cluttered by obstacles, such as poor data quality, inadequate risk controls and ballooning costs. These obstacles highlight the need for strategic AI implementations that can scale while delivering consistent, measurable value.
The need for targeted AI communication with the board
While the interest in AI has surged over the past few years, enthusiasm in the boardroom has tempered as the reality of implementation challenges and unclear returns on investment sets in. Board members, focused on protecting shareholder interests, are asking tough questions about the cost, impact and timeline of AI initiatives. With plans to increase investments in AI, boards want to fully understand the risks and opportunities AI presents rather than be blindsided by challenges down the line.
“AI is now a boardroom topic”, Umesh Sachdev, CEO and Cofounder of Uniphore, said in a recent interview on CNBC-TV18. “It’s being discussed in every board meeting in a publicly traded company,”
According to Sachdev, the move is inevitable. AI strategy is now ingrained within business strategy itself, and no business strategy can exist without a supporting AI infrastructure. That’s the future of enterprise AI: where technology augments, enhances and guides the human fabric of the enterprise. From streamlining operations to improving decision-making, it has become an essential coworker, collaborator and business advisor.
To keep up with these demands, board members now expect CIOs to get them up to speed on AI developments and answer pressing questions, including those they may not even know to ask. Board members, many of whom are not digital natives, rely on CIOs to connect the dots between technology, strategy and risk management, particularly as it pertains to AI. This requires CIOs to distill complex technological concepts into digestible talking points that align with the board’s focus on shareholder value, risk mitigation and long-term strategic goals.
In response, CIOs must articulate a clear, concise picture of the organization’s AI initiatives. By addressing questions about the potential financial impact, workforce implications, competitive positioning and risk mitigation strategies, CIOs can build trust with their board and ensure that AI initiatives remain aligned with the company’s broader objectives.
Effective AI communication strategies for CIOs
Focusing on clarity, brevity and relevance is essential for CIOs to effectively communicate AI strategy and progress to the board. Board members typically prefer succinct materials that provide an overview without delving into excessive detail.
According to recent findings by Gartner, board members typically review an average of 40 pages prior to meetings, whereas some CIOs are currently submitting reports that are more than100 pages long. This discrepancy highlights the need for concise communication that aligns with the board’s preference for streamlined, high-impact information.
Historical performance in innovation
Outline the enterprise’s past successes and challenges with adopting new technologies, providing context for the current AI strategy.
Financial impact
Outline the anticipated effects on revenue, cost savings, profitability and overall financial health, demonstrating AI’s contribution to shareholder value.
Competitive positioning
Compare the company’s AI strategy to competitors, highlighting where AI creates market advantages or addresses gaps, reinforcing the organization’s industry leadership.
AI deployment strategy and risks
Describe the proposed approach to AI implementation, including key use cases, priority areas and investments required. Emphasize risk management measures to navigate potential obstacles effectively.
Workforce impact and skills requirements
Discuss how AI will affect workforce needs, including plans for talent acquisition, skill development and employee engagement.
Risk mitigation
Provide an overview of the governance framework to ensure compliance, ethical standards and risk mitigation related to AI—ensuring that board members understand how the organization plans to navigate potential pitfalls.
As AI’s role in business continues to evolve, the CIO’s ability to align technology strategy with overarching business goals will be critical to shaping the future of enterprise AI. For those leading this charge, focusing on essential AI pillars—like data readiness, governance and scalability—will ensure alignment with strategy, seamless integration across the organization and confidence within the boardroom, cementing the CIO’s role as a trusted advisor at the executive level.