Is the decision-making power for Gen AI investments moving away from CDOs?

“Gen AI has been a bit difficult because it is one thing where many companies will see short-term success, but they might not succeed in the medium and long term.” - Pramod Gosavi, an investor at 11.2 Capital, said in an exclusive interview with AIM Research.

With its capacity to produce fresh content, automate intricate procedures, and improve decision-making, general artificial intelligence (Gen AI) offers enterprises a game-changing potential. Its effects extend beyond data administration and analytics, including customer service, marketing, and product development, among other areas. Due to the wide-ranging effects, investment choices must be made in a more cooperative manner including a larger range of stakeholders, such as chief technology officers (CTOs), chief information officers (CIOs), and even chief executive officers (CEOs), in addition to CDOs.

According to the AIM Research Leaders Survey on Generative AI Priorities and Challenges for 2024, 74% of respondents anticipate an increase in budget allocation for Generative AI initiatives, while 21% expect budgets to remain unchanged, and only 6% are uncertain. This underscores a strong trend towards heightened investment in Generative AI initiatives for the upcoming year.

Multidisciplinary Impact of GenAI

The potential of GenAI to revolutionise customer experiences, company operations, and product development means that jobs inside the C-suite beyond the CDO must contribute. For example, because deploying GenAI systems is technically challenging, there is a growing involvement of Chief Technology Officers (CTOs) and Chief Information Officers (CIOs). In a same vein, Chief Risk Officers (CROs) and Chief Financial Officers (CFOs) play a critical role in evaluating the risks and financial effects of GenAI investments.