Are Chief AI Officers a must-have in Indian companies? Many think so
AI is no longer just a tech experiment as India’s businesses are appointing leaders to drive its implementation. A new study has found that two-thirds of companies plan to appoint a Chief AI Officer within two years.
Organisations in India are moving quickly to give artificial intelligence (AI) a seat at the top table.
While only one in four companies has a Chief AI Officer (CAIO) today, two-thirds plan to appoint one within two years, according to a recent study by the IBM Institute for Business Value. The global survey covered over 2,300 organisations and 600+ CAIOs across 22 geographies and 21 industries in Q1 2025. The India sample size was small and included 30 organisations. However, it shows that companies are interested in developing a clear AI strategy.
Onboarding a CAIO is not about hiring another technologist. It is about creating a senior leader who blends business judgement with technical know-how and whose job it is to make AI actually work for the organisation.
Companies appointing CAIOs
When a majority of firms say they will appoint a CAIO in the next two years, it signals a shift. AI is moving from tinkering and pilots to being an organisational priority. Rather than a handful of experiments, companies want a leader who is accountable for strategy, budgets and results.
Most current CAIOs are not working in isolation. Around three-quarters report strong support from the rest of the C-suite, and about two-thirds have explicit support from the CEO. Around eight in ten say other senior leaders consult them on important AI decisions, according to the report. When the top team backs AI, projects get faster decisions, clearer funding and better integration with business goals.
Many CAIOs report directly to the CEO or board and control the AI budget. That matters because money plus authority accelerates delivery. It also reduces finger-pointing. If AI works, the organisation knows who is responsible. If it does not, the company can learn and reallocate resources more quickly.
There is evidence that having a CAIO pays off. Globally, organisations with a CAIO see around 10% higher returns on their AI investments. That gives boards comfort that AI is not just fashionable technology but a route to measurable value, such as cost savings or better customer service.
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CAIOs changing the way AI is done
CAIOs are doing more than setting strategy. They are directing implementation, managing change so people actually adopt AI, and leading training programmes to build skills internally.
Around seven in ten focus on defining strategy, more than half lead change management and implementation, and many are also driving upskilling and reskilling. Around four in ten CAIOs oversee upskilling and a similar number handle reskilling.
Many are promoted from inside, showing that firms are developing AI leadership talent from within.
Most CAIOs come from data, technology or innovation roles. That combination is important. It means leaders understand both the potential and the limits of AI and can translate technical projects into business results.
Most companies are still in the AI pilot phase, with around two-thirds investing mainly in small-scale projects today. Yet, fewer CAIOs in India find implementation very difficult compared with global peers, which suggests a more optimistic environment for scaling AI.
“As Indian enterprises move from pilots to scaled AI adoption, the role of the CAIOs will be central to their AI transformation journeys. CAIOs will not only bridge the gap between business and technology but also set the strategic direction and keep teams aligned on shared goals,” remarked Viswanath Ramaswamy, Vice President, Technology, IBM India & South Asia.
The rapid rise of the CAIO role shows that companies no longer treat AI as a side project. They are building leadership, accountability and skills to make AI deliver real outcomes. The plans to appoint a substantial number of CAIOs in the near future are a clear signal that for many organisations, this is only the beginning, not the end.
“To succeed, CAIOs must develop a clear transformation roadmap with measurable KPIs, foster alignment with the C-suite on business priorities and focus on initiatives that deliver a sustainable and competitive edge,” noted Ramaswamy.
Edited by Affirunisa Kankudti
