enerative artificial intelligence is changing the job landscape and driving the introduction of new roles within companies at various levels of the organizational structure. One of the most sought-after positions is that of a prompt engineer, for which some companies are paying annual salaries of up to $400,000, even for engineers without a technical degree. Within the C-Level, the role of Chief AI Officer (or CAIO) has emerged.
The CAIO would report to a high-level IT executive responsible for establishing the overall AI strategy of an organization and ensuring that it aligns with the company's culture, vision, and values. This position would be part of the executive team and would report directly to the CEO. For many, this role might have traditionally been filled by the CIO or CTO, but the CAIO combines the best of both. This is an executive with experience, skilled in both strategy and technology, who guides the organization into this new world.
Their mission is not a trivial one, as they must possess visionary skills that allow them to identify opportunities where generative AI can revolutionize their business and give the company a competitive edge, oversee the integration of AI tools, foster a data-driven culture, and ensure the ethical and responsible use of technology. Additionally, the CAIO can help automate routine tasks, optimize workflows, transform data into actionable information to uncover hidden patterns and trends, develop AI solutions customized to the company, and redefine customer engagement through the power of AI.
How much does a CAIO earn?
Last year, Foundry published its AI Priorities Study, revealing that 17% of the companies surveyed already had a Chief AI Officer, while 24% were searching for qualified candidates for the position.
The Financial Times reports that the advent of ChatGPT has tripled the number of companies with a CAIO in their ranks over the past five years. Organizations have recognized the potential of these roles with the rise of generative AI. The financial newspaper also notes that "relatively young engineers in cutting-edge companies" are "earning seven-figure salaries." In February, LinkedIn's annual list of Jobs on the Rise placed AI engineer in the seventh position, making it the highest-ranked technology role in the top 25.
Fortune estimates that compensation packages for CAIOs could average over $1 million, although this figure would vary depending on the experience of the individual professional. Glassdoor is somewhat more conservative, estimating that the figure would range between $283,000 and $528,000 per year. However, opinions on this 'new' role vary. Some believe it will become a fundamental position for companies in the future and a lasting role, while others think it will eventually be integrated as part of the CTO's responsibilities.
For most organizations, having a CTO or CIO with AI expertise may be sufficient, but for market leaders in competitive industries, having a Chief AI Officer could be an essential resource.
CAIOs by Law
Nevertheless, this role is already beginning to be introduced in the public sector. At the end of March, the U.S. Office of Management and Budget (OMB) issued a memorandum and pushed for a regulatory requirement for federal agencies to create the new role responsible for implementing the executive order on the Development and Safe, Secure, and Trustworthy Use of Artificial Intelligence, published last fall. This role is none other than the CAIO.
Thus, agencies have a two-month deadline to appoint a Chief AI Officer who will strengthen AI governance, promote responsible AI innovation, and manage the risks associated with its use. The OMB memorandum states that the CAIO role "must be a position at the Senior Executive Service [SES] level, scientific and professional, or senior leader." This level is so high because this role must have the necessary authority to "regularly interact with the leadership of other agencies, including the deputy secretary or their equivalent."
