Preparing the C-Suite for Success in the 2025 AI-Driven Economy

January 9, 2025 – The Total Economic Impact (TEI) of AI is highly lucrative, serving as the primary catalyst for the bold push toward accelerated digitization. TEI measures AI’s comprehensive economic value to an organization by capturing direct financial gains, operational efficiency, customer impact, risk reduction, and competitive advantage, according to a new report from Boyden’s Bashar Kilani. “Direct financial benefits, such as revenue growth and cost reductions, are complemented by productivity gains, enhanced customer satisfaction, and reduced compliance risks,” the report said. “TEI also includes long-term strategic value, such as faster decision-making, increased agility, and competitive positioning.”

Boyden’s view is that a robust transformation roadmap should deliver 20 percent + EBITDA improvement to be meaningful. According to Bain & Co., despite the general skepticism on immediate return on investment on AI programs, generative AI initiatives alone could add up to 20 percent to EBITDA in certain use cases. Similarly, the McKinsey Global Institute projects potential productivity gains for all workers through generative AI to rise between 35-70 percent in the coming years.

Boyden explains that central to this transformation is the chief AI officer (CAIO), a strategic role that ensures AI is embedded across the organization, from operational efficiency to customer experience. More than a new title, the CAIO catalyzes a shift in leadership priorities, reimagining roles, skills, and decision-making at the highest levels to harness the full potential of the AI economy. Gartner forecasts that by 2025, 35 percent of large organizations will have a CAIO that reports to the CEO or COO.

Building a Unified AI-Driven C-Suite

“The CAIO’s role is not merely functional but fundamentally transformative, serving as the linchpin in evolving the C-Suite toward an AI-native future,” the Boyden report said. “The CAIO acts as both a visionary and a bridge-builder, fostering a mindset shift that enables each executive to see AI as a fundamental part of their strategic toolkit rather than an isolated technology. AI-driven transformations are critical to building competitive advantage and delivering shareholder value, especially in fast-changing industries.” But 70 percent of transformations fail to achieve their initial goals according to BCG.

“The CAIO acts as a nerve center that coordinates many workstreams, timelines, priorities and can help organizations flip the odds,” the Boyden report points out. “The CAIO’s mandate extends beyond technology to redefine the entire organization. Each C-Suite role is reshaped, creating an AI-native executive team equipped to drive innovation, agility, and strategic competitiveness.” Below, Boyden offers an exploration of how the CAIO’s influence will impact each executive role.

Redefining C-Suite Roles in the AI Economy

As organizations seek unprecedented productivity gains and innovation, the traditional C-Suite is required to transform. Organizations can’t simply implement a system or a technology and be done. Instead, creating, managing, and evolving these solutions at an organizational scale requires a fundamental rewiring of how the organization operates. That means getting people across different units of the organization working together and working differently to digitally innovate, constantly. Hereafter, we explore the impact of AI-driven transformation on key C-Suite roles highlighting their new focus and skills required.

Chief Executive Officer

• New Focus: Successful transformations are sponsored by the CEO and require vision, cross-functional alignment and bold commitment, according to the Boyden report. “As the role of the CEO evolves, current and aspiring leaders must develop the skills and mindset required to thrive in AI economy,” it said. “CEOs need to take action on several fronts to enhance corporate performance and to ensure that they and their organizations are well positioned for the future and are ready for the rapid pace of technological advances, coupled with an increasingly volatile global economy. AI will play a pivotal role in streamlining decision-making processes, enhancing leaders’ analytical capabilities, and identifying complex global trends.”
• Illustration: This transition into an AI-native organization isn’t just a change in title; it signifies a profound shift in the responsibilities and skills required to lead a successful organization in the AI economy, the Boyden report explains. The firm notes that unconfined by traditional organizational structures, the CEO will operate in a world where boundaries among companies, industries, and even nations are blurred. CEOs will navigate a landscape where success depends on optimized internal operations as well as the ability to manage a complex web of external relationships and influences. 

Bashar Kilani is managing partner UAE. He has worked with top-tier consulting firms, advising blue-chip multinationals and governments in the Middle East and North Africa and leading critical infrastructure, immersive experience, digital economy, and other major projects. He has nearly 30 years’ experience in technology including global executive, consulting, and board roles.

• Skills Required: Boyden says CEO must lead the transformation, align technology investments strategically and prepare their talents for challenges ahead; leveraging AI and other technologies to enhance decision making, streamline operations, and gain competitive advantage; and cultivating a spirit of innovation throughout the organization, encouraging experimentation and adoption of new technologies and engaging in continuous learning stay abreast of technological advances and global market trends.

Chief Financial Officer

• New Focus: “The CFO of an AI-native organization will manage a transformed balance sheet with a different mix of operational and capital expenses,” the Boyden report said. “AI adoption across the organization will demand investment in data infrastructures, model development & training, and continuous technology updates, making capital allocation to hyper-scalers and data storage a key necessity. Add to that, an increasing array of AI agents that will continually transform core finance processes, such as contract drafting, invoice processing, and general-ledger reviews.” Initially, these agents may improve the efficiency of specific processes by approximately 10% to 20 percent according to Boston Consulting Group (BCG). However, as tools and capabilities develop, they will augment a larger portion of overall finance operations tasks.
• Illustration: Financial discipline is a core component of a successful transformation. It encourages accountability and alignment. CFO’s must be clear about the financial goals of the transformation and hold the organization accountable to them throughout the transition. The AI Economy will bring about a balance sheet that reflects higher capital investments in AI and digital assets, with operational expenses optimized through automation. AI-enabled financial models allow the CFO to make data-driven decisions on resource allocation, strategically investing in technologies that enhance productivity.

Related: The Rise of Generative AI: Anticipating Fundamental Shifts in Work and Organizations

• Skills Required: Proficiency in AI-powered financial analytics, strategic capital allocation, and a deep understanding of AI’s impact on financial performance; CFOs will need to identify and promote internal talent, identify skill gaps, provide training opportunities, and recruit individuals who are equipped to handle future use cases as they emerge; ensure that finance personnel understand how AI can complement their work and unlock their potential by automating routine tasks, accelerating business insights, and improving operational efficiency.

Chief Sales/Revenue Officer

• New Focus: The chief sales/revenue officer will lead a transformed sales organization where AI is integrated within the digital processes allowing the organization to scale, reaching new markets and prospects, update offerings to address new requirements, and improve its sales approach by learning from each customer interaction, according to the Boyden report. In a recent research, McKinsey & Company estimated that gen AI could open up an incremental $0.8 trillion to $1.2 trillion in productivity across sales and marketing, on top of the productivity increases already realized from traditional analytics and AI applications.
• Illustration: “Imagine a sales team using AI to anticipate client needs and suggest relevant solutions in real-time,” the Boyden report said. “By combining predictive insights with an integrated supply chain, sales teams can adapt to market demands quickly, enhance client relationships, and expand their reach.”
• Skills Required: Proficiency in AI-driven CRM platforms, customer analytics, and an ability to scale sales strategies using AI-powered insights as well as proficiency in digital commerce and the ability to create frictionless client engagements capturing new opportunities and promoting a flawless experience. According to a recent McKinsey B2B Pulse Survey, B2B sellers are in the early stages of using gen AI. Just 21 percent of surveyed commercial leaders (defined as top management, sales leaders, and marketing leaders) report that their companies have fully enabled enterprise-wide adoption of gen AI in B2B buying and selling, and 22 percent have only piloted specific use cases.

Chief Human Resources Officer

• New Focus: “The CHRO will lead the evolution of the talent profile for an AI-native organization,” the Boyden report said. “This includes addressing the AI skills deficit, up/reskilling the workforce, and cultivating a learning culture that keeps pace with rapid technological change.” BCG in a recent executive perspective predicts that HR of the future will be fundamentally different leveraging AI for step changes in productivity with 90 percent + boost in some administrative workflows, and in speed and effectiveness with 50 percent decrease in time to hire and three times increase in employee engagement to mention a few examples.

Private Equity In Hot Pursuit Of Chief AI Officers With Strategic Vision

AI has been increasingly buzzy in the past year as companies try to understand the potential benefits it can bring – from ringing out more efficiency in the workplace and streamlining decision-making, to improving employee productivity monitoring. President Joseph R. Biden Jr. has announced a policy to help government agencies harness its power and mitigate its risks by appointing chief AI officers. The policy shift marks another inflection point around AI and the rapid acceleration of demand for leaders across the space.

• Illustration: Boyden says to imagine a workforce of the future where employees possess strong digital skills, creativity, and problem-solving abilities. “The CHRO will implement AI-driven training and upskilling programs, develop partnerships for continuous learning, and prioritize employee engagement to bridge the skills gap,” the firm said.
• Skills Required: Expertise in AI-enhanced talent development, change management, and workforce planning for a rapidly evolving skills landscape; lead agile talent planning to address skill gaps through hiring and up/re-skilling, providing dynamic and more competitive reward/benefit systems and personalized career journeys.

Chief Marketing Officer

• New Focus: The Boyden report explains that CMOs will leverage AI to provide personalized, precise marketing that differentiates offerings and creates new engagement models. The firm notes that AI enables CMOs to deliver tailored messages that resonate at an individual level, driving brand loyalty and competitive advantage. Gartner predicts that by 2025, 30 percent of outbound marketing messages from large organizations will be synthetically generated. That’s up from less than two percent in 2022.
• Illustration: “Imagine digital marketing that dynamically adapts to customer behavior, providing relevant messages at the perfect moment,” the Boyden report said. “AI-driven insights that allow CMOs to craft highly personalized campaigns, fostering customer loyalty and creating competitive differentiation in an increasingly crowded market.”
• Skills Required: Mastery of AI-enhanced customer analytics, real-time personalization strategies, and proficiency with AI-driven marketing platforms.

Chief Information/Digital Officer & Chief Technology Officer

• New Focus: Together, the CIDO and CTO will build an agile digital infrastructure that supports dynamic data structures and optimized operational workflows, the Boyden report explains. McKinsey & Co. articulates a new dawn for the technology leaders based around scaling the business-tech operating model and turning data and tech into a service.
• Illustration: “Imagine a digital ecosystem that automatically scales based on demand, optimizes data processing for relevant insights, and supports the rapid deployment of AI solutions,” the Boyden report said. “This infrastructure empowers the organization to develop offerings tailored to market shifts and enhance operational efficiency.”
• Skills Required: Deep knowledge of AI infrastructure, data management, agile digital systems, and the capability to align technology with strategic goals. A recent Gartner study found that only 15 percent of chief information officers and IT leaders believe their workforce is ready for the future.

Conclusion

The transition to an AI-driven organization demands more than technological upgrades; it requires a profound shift in leadership, culture, and strategy, the Boyden report concludes. “The CAIO plays a crucial role as both the architect and catalyst for this transformation, ensuring that AI is not merely a tool but an integral part of the organization’s DNA,” the study said. “By aligning AI initiatives with the broader strategic vision, developing AI capabilities across every function, and embedding responsible AI governance, the CAIO prepares the C-Suite and the entire organization to navigate the opportunities and challenges of the AI economy. This shift to an AI-native mindset redefines each executive role, making AI a shared resource that enables every C-Suite leader to drive value in their areas of responsibility.”

“Ultimately, the economic impact of AI transformation is not just measured in immediate productivity gains or cost reductions but in the organization’s enhanced resilience, agility, and competitive positioning,” the Boyden report said. “A successful AI-driven transformation, guided by the CAIO, can lead to a 20 percent + improvement in EBITDA, making a compelling case for organizations to invest in a holistic and strategic approach to AI. By fostering a unified, AI-enabled C-suite, the CAIO ensures that the organization is equipped to achieve sustainable growth, deliver shareholder value, and thrive in a rapidly evolving market landscape. The organizations that embrace this transformation today will be those that lead the AI economy tomorrow.”

Related: The Emergence of the Chief Generative AI Officer

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media