CIOs are ideally suited and well-positioned for the challenge because they understand the complex interplay of technologies involved. And they see the big picture across the enterprise and how AI fits into its overall modernization and transformation strategies. CIOs are:
- Preparing for disruption
Spending on AI is expected to reach $26B in the next three years. It’s not a surprise that two out of every three IT organizations are planning to allocate more than five percent of their budgets to AI initiatives.1
- Embracing their change management roles
CIOs—more than any other executive or line of business role—are becoming the central authority for most organization’s AI budgets and priorities. According to an April 2024 IDC study, CIOs will oversee AI resources in 53 percent of surveyed organizations.1
- Determining target areas
AI is being used in many different use cases, from enterprise off-the-shelf productivity tools to tailor-made solutions. Gartner Research indicates that 55 percent of CIOs will use genAI in some form over the next 24 months.2
CIOs must decide which priorities come first. KPMG believes these are the pivotal roles the CIO must play right now.
- Drive AI into IT delivery by accelerating adoption within your function to boost productivity and champion change.
- Implement AI operations to make tactical activities smart and automated
- Modernize applications with AI to kickstart migrations and transformations
- Transform the SDLC using AI to enhance efficiency and accuracy, and automate code generation
- Secure the ecosystem and platform needed for AI and continuously monitor for threats and drift
- Build the AI foundation by closing key gaps to enable responsible enterprise-wide AI adoption across applications, data, cloud, and cyber.
- Enabling access to leading AI solutions by owning investment and decision-making
- Building the data foundation for AI to ensure the required foundation for data infrastructure, governance, and RAG/LLM
- Scaling cloud solutions to maximize AI potential by Identifying applications that must be in the cloud
- Upskilling for AI by developing employee expertise, IT SMEs, data scientists, and AI architects
- Co-shape AI transformation by shepherding enterprise AI strategy through investments, technology decisions, and driving AI adoption.
- Outlining the architectural framework to ensure it is adaptable and can accommodate disruptions in the future
- Defining governance and trust frameworks to manage change and set board-level expectations
- Shaping the business operating model to define how AI will impact and transform business
- Prioritizing investments and tracking ROI—teaming with the CFO—to ensure that investment delivers returns, aligns with business goals, and embodies the organization’s values.
Learn how we can help you align your AI efforts with leading practices at Generative AI (kpmg.com).
1 IDC, April 16th, 2024 – IDC: Generative AI Spending to Reach $26 Billion by 2027
2 Gartner, October 17th 2023 – https://www.gartner.com/en/newsroom/press-releases/2023-10-17-gartner-survey-of-over-2400-cios-reveals-that-45-percent-of-cios-are-driving-a-shift-to-co-ownership-of-digital-leadership
