Australian firms race to appoint chief AI officers

Almost half of Australian organisations have appointed a Chief AI Officer, according to Datacom research, and that share is expected to rise to 63% by 2027.

Based on a survey of 507 business and IT leaders, the findings point to a rapid rise for a role that was barely recognised in many organisations a few years ago. Some 93% of respondents expect the Chief AI Officer, or CAIO, to become a permanent part of executive teams.

The research suggests the position is being defined less as a technical post and more as a strategic leadership role. Developing an organisation-wide AI strategy and roadmap was identified by 60% of respondents as the CAIO's main responsibility, while 50% pointed to responsible AI governance.

Only 9% said the core job should be managing technology vendors and platforms. The gap suggests many organisations now tie AI leadership more closely to business direction and oversight than to day-to-day technology management.

Datacom's report comes as Australian organisations continue to expand their use of AI while remaining cautious about the risks. More than four in 10 said they are scaling AI across multiple business functions, while just 3% are not using it at all.

Even so, 55% described themselves as cautious or highly risk-averse in their approach to AI. Risk and governance concerns were identified by 22% of respondents as the leading barriers to stronger AI leadership.

Strategic role

The survey also highlights uncertainty over where the CAIO sits within the existing executive structure. Among organisations with no plans to appoint one, the most common reason was overlap with existing roles, and 88% of respondents expect significant overlap with the Chief Technology Officer function.

Even so, support for the role is growing. The emergence of the CAIO reflects how many organisations are moving beyond AI experimentation and starting to adjust their operating models for broader deployment.

Lou Compagnone, Director of Artificial Intelligence at Datacom, said the role should be treated as broader than a technology appointment. "Appointing a CAIO can't just be a title change. The role needs to help the organisation move from pockets of AI activity to a clear, coordinated approach - with the right governance, executive alignment and business ownership in place. AI success depends on more than technical delivery. The CAIO needs to help set strategic direction, bring leaders with them and make sure the organisation understands where AI can create value, how risk will be managed and what needs to change to get there," Compagnone said.

Productivity was the most commonly cited reason for embedding AI more deeply, with 38% of respondents identifying it as their biggest motivation. That places efficiency gains at the centre of the business case for AI adoption, ahead of more experimental or purely technical objectives.

Compagnone linked that focus to current discussions inside organisations assessing where AI can deliver measurable returns. "Improving productivity is one of the clearest drivers we are seeing in customer conversations. Organisations want to know where AI can make work faster, simpler or more efficient, and they need evidence early to build confidence and support further investment," he said.

Leadership backing

The report found that executive support is seen as the most important condition for successful AI programmes. Some 47% of respondents identified backing from senior leaders as critical to delivering meaningful organisational outcomes.

That reinforces the view that the CAIO role is becoming part of broader corporate leadership rather than remaining confined to technology teams. As organisations try to link AI projects to commercial goals, governance requirements and workforce changes, senior-level sponsorship appears to be becoming more important.

Compagnone said leadership alignment would determine whether AI projects delivered results or remained fragmented. "Technology alone won't determine whether organisations succeed with AI. The CAIO has an important role to play in bringing leadership teams together around a clear strategy, so AI initiatives don't stall or remain disconnected from the broader business," he said.

The public sector is moving fastest. Australian Government departments and agencies are now required to appoint a CAIO, helping place the Australian public service at the front of adoption.

That effect is already being felt more widely. Nearly three-quarters of respondents, or 73%, said the government mandate has shaped their organisation's approach to AI.

Compagnone said the public sector shift could influence standards beyond government. "The public sector mandate is an important signal that AI governance needs clear ownership. How agencies define and empower the CAIO role will help set the standard for responsible AI leadership, and those expectations are likely to influence organisations well beyond government," he said.