Fire Your Chief AI Officer.
Dec 11, 2025
The corporate world is currently in the grip of a familiar hysteria. Faced with a technology they do not fully understand - one that threatens to rewrite the fundamental operating codes of their industry - Boards of Directors and CEOs are retreating to their favorite defensive mechanism: the panic hire.
They are searching for a savior. Chief AI Officer (CAIO). A singular figure to whom they can delegate the existential burden of transformation.
If you are currently drafting a job description for a CAIO, stop. You are about to make a strategic error of significant magnitude. You are building a silo for a technology that demands ubiquity. You are replicating the exact failures of the "Digital Transformation" era. And you are providing your executive team with the ultimate excuse to remain technologically illiterate.
It is time to fire your Chief AI Officer. Or, better yet, never hire one at all.
The Consultancy Hall of Mirrors
If you listen to the "Big Four" consultancies, the CAIO is the season's must-have accessory.
Gartner describes the role as a necessary "orchestrator" to bring harmony to fragmented AI experiments. McKinsey and BCG frame the CAIO as a cross-functional wizard, a "Shadow CEO" responsible for the "70%" of transformation that involves people and processes, rather than just code. They argue that to win the "AI Arms Race," you need a general - someone to govern data, manage risk, and signal to the market that you are "AI-First."
It is a seductive narrative. It promises that a single hire can solve a systemic challenge. But this advice benefits the headhunters and the slide-deck architects more than it benefits your P&L. By advocating for a centralized "Czar" of intelligence, these firms are engineering a bottleneck camouflaged as a solution.
The Ghost of the Chief Digital Officer
We have seen this movie before. We know how it ends. Rewind to 2015. The panic was "Digital." Retailers feared Amazon. Banks feared Fintech. The solution? The Chief Digital Officer (CDO).
The CDO was heralded as the "Transformer in Chief," the bridge between the dinosaurs in IT and the cool kids in Marketing. Companies like McDonald's and Nike rushed to appoint them. But the role was structurally doomed. By creating a "Digital" department, companies implicitly signaled that "Digital" was a separate activity, distinct from the core business of selling burgers or sneakers.
The results were catastrophic.
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Nike's Miscalculation: Nike's aggressive "Consumer Direct Acceleration," championed by digital leadership, disconnected the digital strategy from operational reality. The focus on digital metrics over wholesale ecosystem health contributed to inventory gluts and missed revenue targets, leading to shareholder lawsuits that specifically named the former Chief Digital Officer.
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The McDonald's Revolving Door: McDonald's hired its first CDO with great fanfare to bring Silicon Valley thinking to fast food. The role suffered an identity crisis. Was it marketing? Was it IT? Nobody knows. Eventually, it dissolved and absorbed back into the core functions.
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General Motors: The auto giant hired a high-profile executive from Google to serve as its CDO (and later in similar roles). The "organ rejection" was palpable.
The CDO became the "Chief Disappearing Officer." The average tenure was less than three years. The companies that succeeded in digital transformation were those where the CEO owned it, not those that outsourced it to a scapegoat.
The CAIO: A New Silo for a New Era
Today, we are repeating the CDO mistake at a faster pace and with higher stakes. The cracks are already visible.
Look at General Motors again. In 2024, they hired Barak Turovsky, a heavyweight from Google and Microsoft, as their first Chief AI Officer. The press release was glowing. Less than a year later, he was gone. Crucially, GM did not replace him. They didn't fire the person. They fired the role. They moved the AI team under the "Manufacturing Engineering" organization. They realized the hard truth: AI is not a standalone strategy. In a car company, AI is a manufacturing tool. It belongs on the factory floor, owned by the people who build the cars, not in an ivory tower owned by a strategist.
We see similar chaos at Meta, where the centralization of AI leadership led to friction between research labs (focused on AGI) and product teams (focused on shipping features), resulting in restructuring and layoffs in their "Superintelligence" divisions.
When you appoint a CAIO, you create three immediate failures:
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The Budgetless Executive: They have a mandate to transform but no P&L authority. They cannot force Sales to use an AI CRM. They can only beg.
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The Conflict: They immediately enter a turf war with the CIO (who owns the data) and the CISO (who fears the risk).
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The Alibi: This is the most dangerous. The moment you hire a CAIO, your CFO, CMO, and COO breathe a sigh of relief. They think, "Great, the AI guy handles that now." They abdicate their responsibility to upskill.
The Real Reasons You Want a CAIO
If the role is structurally flawed, why are appointments skyrocketing? Let's be honest about the psychology of the boardroom.
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The Liability Sink: You are hiring a scapegoat. If an algorithm hallucinates or discriminates, you want a designated "fall guy" to fire so the CEO survives.
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The Stock Price Signal: In the current market, "AI" expands your P/E multiple. Hiring a CAIO is "Innovation Theater"—a signal to Wall Street and Venture Capitalists that you are "tech-forward" even if your internal data is a mess.
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Laziness: True AI transformation requires the CEO to rethink the business model. That is hard work. Hiring a CAIO is "outsourcing the problem." It is a way to feel like you are doing something without actually changing anything.
The Solution: Own It!
AI is a General Purpose Technology. It is like electricity. You do not have a "Chief Electricity Officer." You have a factory that runs on electricity, a supply chain that runs on electricity, and a finance department that runs on electricity.
To succeed, you must move from centralized command to distributed ownership. This requires a rigorous methodology I call Imagine, Design, and Run.
1. IMAGINE (Owned by the CEO/Board)
This is not a technology phase. It is an identity phase. The CEO must ask: "If the cost of intelligence drops to zero, what is our value proposition?" A CAIO cannot answer this. Only the business leader can decide whether to cannibalize revenue streams or pivot the business model.
2. DESIGN (Owned by Cross-Functional Squads)
Stop building "AI Labs." Build "Tiger Teams" that combine domain experts with data scientists. A petroleum engineer and an ML researcher working together will find more oil than a room full of data scientists working alone. The "Design" phase translates strategic intent into process architecture.
3. RUN (Owned by the P&L Leaders)
This is where Innovation Theater dies, and value is born. The COO and CFO must own the execution. AI must become invisible. It must simply be "how we do accounts payable" or "how we route trucks." If it isn't generating P&L impact, kill it.
Conclusion
The successful company of 2030 will not be the one with the most famous AI scientist in the C-suite. It will be the one where the CFO understands token economics, the CMO understands algorithmic personalization, and the CEO understands that intelligence is an asset, not a department.
Transformation cannot be outsourced.
The entire organism must metabolize it.
Fire your Chief AI Officer and take responsibility for your own evolution.
Your move.