AI underwent a significant transformation in November 2022, shifting from a background technology to a powerful disruptor at the forefront of innovation. Today, we are entering the next phase of generative AI, where consumers are actively engaging with the technology and organizations are investing on a large scale.
Generative AI has the potential to fundamentally change business operations, particularly for knowledge workers.
Are you ready for AI agents? Organizations poised to lead in this moment of disruption will adopt a comprehensive approach to seizing new value opportunities while empowering their workforce.
Since becoming vice chair of AI and digital innovation at KPMG U.S.—a role akin to that of a chief AI officer (CAIO)—I've navigated both successes and challenges. My experience has reinforced the importance of having a capable, accountable leader in the C-suite to drive bold, rapid, and responsible AI initiatives.
There's been much debate about whether the CAIO role should be filled by established tech leaders like a CIO, CTO, or CDO. My answer is a firm "No." While tech leaders are essential, the far-reaching impact of generative AI necessitates a visionary leader who combines technical knowledge with business insight, strategic foresight, and innovative thinking.
While the current hype surrounding disruption may seem exaggerated, the long-term implications are significant. This role demands someone adept at understanding the transformative nature of generative AI and mobilizing the entire organization. As companies transition from pilot programs to widespread AI integration, here are three key insights from my experience.
1. Establish governance that fosters bold, fast, and responsible innovation.
With the rapid adoption of AI and evolving regulations, companies must navigate their AI strategies safely and ethically. The foremost task for a new CAIO is to implement trusted AI guardrails—facilitating progress instead of slowing it down.
As CAIOs embark on their governance initiatives, they should consider three critical questions:
- Where is AI currently deployed in your organization?
- Is there a responsible use policy governing AI, and who oversees it?
- Do you have a robust system for monitoring and managing this policy?
At KPMG, we launched our trusted AI framework in October, establishing a trusted AI council to guide decision-making and maintain vigilance. Our ethical principles are based on ten pillars, including sustainability, security, fairness, and privacy. While each organization may have a unique approach to AI, a solid governance framework is essential for rapid and bold innovation.
2. Empower your workforce with AI.
Over half of consumers report that generative AI significantly influences their professional lives, and many anticipate even greater impacts in the next two years. These numbers are even higher among younger generations. However, there’s still uncertainty about how AI will reshape their careers.
Organizations can ease employee concerns by providing safe, secure access to generative AI alongside training and development opportunities. Increasing accessibility is key to sparking innovation. A top-down approach may overlook valuable insights from employees. We’ve discovered that some of our best use cases have emerged from those who have been empowered to leverage generative AI.
Excitingly, many organizations are already implementing or planning mandatory generative AI training for their employees. The readiness of the workforce will significantly influence the success of an organization's AI strategy. CAIOs need the authority to engage everyone—from frontline employees to leadership and the board—in a comprehensive change management and communication strategy.
3. Act swiftly to secure your position in the AI landscape.
The pace of technological change is rapid, and generative AI is evolving faster than any previous business technology. Companies that make decisive moves now will capture crucial first-mover advantages.
In this period of disruption, “AI-first” organizations are likely to thrive, while those slow to adapt may struggle against more agile competitors. The traditional “fast-follower” strategy has diminished with recent technological advancements, and may soon become obsolete in the world of generative AI. This presents a significant challenge and an opportunity for CAIOs to lead their organizations into a successful future.
Steve Chase is the vice chair of AI and digital innovation at KPMG.
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