The rapid mainstreaming of artificial intelligence has led the U.S. government to set some new guidelines for safe AI development that could have repercussions in the corporate C-suite. In March 2024, the Office of Management and Budget issued asetting down a number of practices and requirements that govern the use of AI among federal agencies. Among these is the requirement that"each agency must designate a Chief AI Officer within 60 days of the date of the issuance of this memorandum.
Historically, the government has lagged behind private industry in terms of organizational structure and process. But uncharacteristically, the government is now leading the way in corporate governance of AI. Given this development, should the C-suite—the top decision-making body of a corporation—create a similar role?Consolidating all responsibility for AI under a CAIO may work for the federal government, but the private sector has a longer history with this technology.
Each role requires a unique set of skills and knowledge—where the director of AI needs to be adept at identifying and leveraging AI opportunities, the director of AI security must excel in risk management, regulatory compliance and ethical considerations, as well as have some basic understanding of AI and its unique complexities. This division allows for more targeted recruitment and development strategies, facilitating the cultivation of expertise within each domain.