Reshaping the CIO's Playbook for the AI Age

In the ever-evolving landscape of enterprise technology, few developments have sparked as much excitement and trepidation as generative AI. This transformative technology is not just changing how businesses operate, it's fundamentally altering the role of the CIO. As organizations grapple with the implications of GenAI that can create, innovate, and problem-solve, CIOs find themselves at the forefront of a fundamental business revolution. 

The global EY organization’s latest survey of CIOs finds them forging ahead with GenAI. Eighty-three percent anticipate their budget for GenAI to increase over the next 12 months, with 12% expecting an increase of more than 50%. Additionally, CIOs responded that they have dedicated at least 10% of their annual technology budget to GenAI. 

Traditionally, CIOs have been the guardians of an organization's enterprise technology and data infrastructure, focused on maintaining systems, ensuring data security, and driving digital transformation initiatives. However, the advent of GenAI is forcing CIOs to expand their remit to strategic innovation reviewers, ethical stewards, and to become far more integrated into cross-functional programs aligned with both “grow the business” and “run the business” initiatives. 

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One of the most significant shifts is the CIO’s evolving role in fostering innovation. GenAI tools, capable of producing everything from code to copy, are opening new avenues for creativity and efficiency across departments. CIOs are now tasked with helping identify and implement those solutions that will help move the dial most quickly. This requires a delicate balance of technological enthusiasm and practical caution. 

As a result, the CIO is rising to become an even more central player for the CEO and at the board level. Investments in tech, data and cybersecurity will lead the CEOs’ agenda for the next 12 months. 

For example, investing in technology, including GenAI, to improve growth and productivity is a top priority for nearly half (47%) of CEOs surveyed in the recent EY CEO Outlook Pulse survey. The top strategic driver for CEOs pursuing acquisitions was cited as acquiring technology, new production capabilities or innovative startups (40%).  

Indeed, the top three actions investors want CEOs to focus on over the next three years all ladder back in some form to technology -- protecting or creating new revenue streams, digital innovation, and cost optimization. 

The ethical implications of GenAI also place new responsibilities on the CIO’s shoulders.  

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Governments, regulators, and civil society are demanding that the mistakes of the internet are not replicated with the roll out of GenAI. CIOs must now champion responsible AI practices, ensuring that the generative models deployed within their organizations are fair, transparent, and aligned with corporate values. This extends to data governance, as the training of AI models often requires vast amounts of potentially sensitive information. 

Collaboration has always been a key aspect of the CIO's role, but GenAI is pushing this to new heights. This all means that the CEO and CIO dynamic is shifting, with the CIO now taking an increasingly more horizontal role across the executive agenda in addition to the traditional functional vertical. We will likely see the CIO increasingly partner with the chief human resources officer as they continue to move to become a central figure in driving workforce evolution, both form and skill and cultural change across the organization spearheaded by technologies such as GenAI.  

Technology's potential to impact every facet of business operations means CIOs must work more closely than ever with other C-suite executives. From partnering with the CMO to revolutionize customer experiences to aligning with the CFO on AI-driven financial forecasting, to creating digital twins to make supply chains more robust, the CIO is becoming a central figure in cross-departmental innovation. 

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The rapid pace of GenAI development is also challenging CIOs to become more agile in their approach to technology adoption. The traditional multi-year planning cycles are giving way to more flexible strategies that can accommodate the swift evolution of AI capabilities. CIOs must cultivate a culture of continuous learning and adaptation across the whole of their company to keep pace with these changes. 

As GenAI reshapes business processes, CIOs are also confronting new cybersecurity challenges. The potential for AI-generated deepfakes, sophisticated phishing attempts, and other novel threats requires a reimagining of security protocols. CIOs must stay ahead of these risks, implementing robust safeguards while educating their organizations about the changing nature of digital threats. 

The role of the CIO is therefore no longer purely about operations and keeping the lights on. The shifting CEO agenda over the past five years -- from digital transformation to the advent of AI -- means it is now a strategic keystone for a company, with the CIO firmly seated as a strategic partner for the CEO, alongside the CFO. And in the CIO’s newfound position, the CIO will need to hone their skills in achieving collaboration and buy-in across the board. 

As organizations navigate this new era, CIOs can position themselves as visionary leaders. Those who can effectively harness the potential of GenAI while mitigating its risks will drive their companies to new heights of innovation, growth and efficiency -- as an example, EY is redefining the M&A process with our AI-enabled Edge platforms. The CIO of tomorrow is not just a technology expert but a business strategist, an ethical leader, and an architect of human-AI collaboration. 

In this landscape of rapid change, one thing is clear: The impact of GenAI on the role of the CIO is profound and far-reaching. As these technologies continue to evolve, so too will the responsibilities and opportunities for those at the helm of enterprise technology. The most successful CIOs will be those who embrace this change, leading their organizations into a future where human ingenuity and artificial intelligence work in harmony to achieve unprecedented results. 

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.