Executive Leadership in the AI age

This executive breakfast and roundtable, sponsored by three leading companies in the sector, offered a unique platform to explore how AI can be strategically integrated into corporate governance, with a particular focus on the role and responsibility of boards. The participants looked at key challenges, such as mitigating algorithmic bias and cybersecurity; and the opportunities, such as process optimization and improved data-driven decision-making, that AI presents for corporate governance in the twenty-first century.

"AI today is the “Vital Horizon” of all organizations," said Garcia-Velasco. "The dimension of this “forced” change requires organizations to structure a clear and defined AI strategy that must be aligned with the strategic objectives of the organization. From automation of routine tasks to strategic decision making, AI is directly impacting leadership and governance. In this context, the emergence of the Chief AI Officer (CAIO) has become crucial to formulate this AI Strategy and guide organizations in the adoption and responsible use of AI. In Spain, several companies are at the forefront of this transformation, demonstrating the potential of AI to drive innovation and growth based on a proven AI Strategy approved by company executives and the Board of Directors."

What are the potential ways of transforming Executive Leadership in the AI age?

"AI is redefining the skills and competencies needed to lead in this new digital age, and leaders of organizations must be able to understand and leverage AI and not fear it," said Garcia-Velasco. "That's critical to understanding the capabilities and limitations of AI, as well as its potential impact on the organization."  

The speed of technological change has made it increasingly difficult to maintain the balance of the “cost/benefit” binomial, as the obsolescence of some technologies, even before reaching maturity, makes constant innovation a major intellectual and economic challenge to be overcome. "It's crucial to foster a culture of learning and adaptation," he continues. "AI evolves rapidly, so leaders must foster a culture of continuous learning and adaptation to change. They must be willing to experiment with new technologies and approaches, and learn from successes and failures. This involves creating an environment where employees feel comfortable exploring new ideas and taking calculated risks, as well as providing them with the tools and resources they need to develop their AI skills." 

It is no less important to lead with empathy and ethics. "AI can automate many tasks, but it cannot replace human empathy and judgment," Garcia-Velasco is certain. "Leaders must be able to balance the efficiency of AI with the need to maintain a human approach to leadership. In addition, they must ensure that AI is used ethically and responsibly, taking into account its impact on employees and society at large. This involves establishing clear ethical principles for the use of AI, as well as oversight and accountability mechanisms to ensure that these principles are adhered to." 

Who will lead the AI transformation: the rise of the CAIO

"The growing importance of AI in organizations has led to the creation of the position of Chief AI Officer, the CAIO," says Garcia-Velasco. "The CAIO is a strategic leader responsible for guiding the organization in adopting and leveraging AI effectively and responsibly." 

Among the responsibilities of the CAIO is the development and execution of the AI Strategy. " The CAIO works closely with senior management to define the vision and goals for AI in the organization, develops a roadmap for AI implementation, identifies areas where it can have the greatest impact and sets priorities," Garcia-Velasco explains. " They also need to build and lead the AI team: the CAIO is responsible for recruiting, developing and leading a team of AI experts, including data scientists, machine learning engineers and AI ethicists. They must foster a culture of collaboration and innovation within the team, and ensure they have the tools and resources they need to succeed." 

It is also crucial that the level of AI-savviness grows across the whole organization. "The CAIO needs to work to educate employees on the benefits of AI and encourage its adoption across departments," Garcia-Velasco continues. "They need to facilitate collaboration between AI teams and other areas of the organization, and ensure that AI is effectively integrated into existing processes and workflows. Apart from that CAIO needs to represent the organization in the AI ecosystem - build relationships with external partners, such as technology providers, universities and research institutions, to keep abreast of the latest trends and developments in AI." 

To find out more, reach out to Oscar Garcia-Velasco or the Digital Practice members in your country!