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AI needs a leader: why having a chief AI officer is becoming a business necessity

17 0
31.08.2026

In organisations across Australia, a fundamental shift in leadership is taking place as chief artificial intelligence officers (CAIOs) become an increasingly common role in executive teams. It is a senior leadership role that will reshape how organisations operate and how entire workforces will adapt to what may be one of the most significant workplace transformations in our lifetime. And, perhaps surprisingly, the Australian Public Service (APS) is leading the way.

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Since the start of July, it has been a requirement for every federal government department to have a CAIO. The APS artificial intelligence (AI) plan says the appointment of these officers is in "recognition of the fundamental shift that generative AI is bringing to government operations". CAIOs are responsible for identifying areas where AI can meaningfully improve Australians' lives. This could be through faster service delivery, better-informed policy development and through a more efficient allocation of resources.

The private sector is taking notice. Over the next year it is expected there will be a rapid increase in the number of CAIOs within Australian organisations. Datacom's recent survey found four in 10 organisations already have a CAIO with this figure expected to jump to 63 per cent by next year.

What is significant about this projection is that 73 per cent of private sector organisations say the APS mandate has helped to shape their own decision making. While government and business have different purposes and deliver value in different ways, they both face the same underlying challenges when it comes to AI adoption. One of the key problems faced by organisations is that - as the technology has evolved - AI responsibilities have often been scattered across multiple functions and departments. The CAIO brings these responsibilities together under one leader.

This matters because leadership is what........

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