AI leadership: five bold imperatives for the CEO
It’s a mistake for leaders to treat AI as merely a technical issue. Rather, AI has become the cornerstone of business strategy, demanding the CEO’s direct attention.
In boardrooms across the globe, artificial intelligence has moved from tech buzzword to being a key topic of discussion on the executive agenda. It’s undeniable that AI is advancing at an extraordinary pace, with each breakthrough arriving quicker and more intelligently than the one before, constantly raising the bar for innovation. Keeping up with this rapid evolution will be challenging – but integrating these capabilities will be even more critical for scaling impact and unlocking AI’s full value.
It’s a mistake for leaders to treat AI as merely a technical issue. Rather, AI has become the cornerstone of business strategy, demanding the CEO’s direct attention.
While massive investments in AI pilots continue, only about one in four initiatives reach production – underscoring that the real challenge is aligning AI with strategic objectives. CEOs play a critical role in channelling AI effort toward unearthing the fundamental value that drives growth and secures competitive advantage.
Now is the time for visionary leadership to transform AI into a true catalyst for lasting, meaningful change.
1 Treat AI as a strategic asset (not a tech initiative)
First and foremost, don’t view AI as an IT project. It’s a strategic asset that will define your company’s future competitiveness. CEOs therefore cannot simply “relegate AI strategy to IT functions”​ – they must own it. Just as past technological waves like the internet and cloud required CEO sponsorship, AI now needs active championing from the chief executive. That means weaving AI into your vision and strategy. When the CEO treats AI as mission-critical, the organisation follows. Make AI literacy part of your leadership team’s skill set, and set the tone that AI isn’t optional.
2 Break down silos with cross-functional execution
AI’s power comes from combining data, technology and domain know-how, which rarely sit in one place. Silos are the enemy of AI value. If your data scientists, IT engineers, and business managers are all pulling in different directions, even the best algorithms won’t deliver impact. In fact, roughly 70 per cent of AI adoption challenges stem from people and process issues – not technology​.
As CEO, you must foster unprecedented collaboration across functions. Many leading companies devote the majority of their AI resources to people and process change rather than just new tech​. Encourage a culture where product, IT, marketing, and operations jointly own AI outcomes. By uniting your organisation around shared AI goals, you’ll avoid the turf wars and inertia that kill so many promising projects.
3 Focus where it matters (and be clear on what not to pursue)
The landscape of AI opportunities is vast – you can’t do it all. Effective AI leadership means choosing a few domains to dominate and saying no to the rest ... for now. Rather than chasing every shiny AI application, the bold CEO identifies the business areas where AI will move the needle (be it customer acquisition, supply chain efficiency, or product innovation) and concentrates firepower there. Just as importantly, be explicit about what not to pursue right now. This clarity sharpens your organisation’s focus. Notably, companies that are ahead in AI tend to pursue about half as many initiatives as their peers yet achieve far higher ROI​. Pick the 2-3 high-impact use cases that align with your strategy and commit to them. By doing less, you’ll accomplish more.
4 Make trade-offs and sequence investments
for impact
Bold AI leadership isn’t about blank-check enthusiasm – it’s about strategic pacing and sequencing. You must decide what comes first and what waits. This often involves hard trade-offs: for example, prioritising an AI-driven supply chain overhaul might mean pausing an AI marketing idea until next year. Have the discipline to sequence your AI investments in line with business priorities and the organisation’s readiness. Start with projects that offer a balance of lower risk and high reward to build momentum and credibility​. At the same time, lay the groundwork (data infrastructure, talent training, governance) for bigger bets. The key is to avoid trying to “boil the ocean” all at once. A clear road map keeps everyone aligned and resources focused. By making conscious trade-offs about timing and scope, you ensure AI efforts actually translate into impact rather than petering out.
5 Orchestrate an AI Ecosystem – the Right Mix for Speed and Innovation
No company can master AI in isolation and the future belongs to those who master the art of orchestration. The best leaders realise that there’s a critical trade-off between building capabilities internally and moving quickly through external partnerships. On one side, investing in-house allows you to develop proprietary solutions that create lasting competitive advantage – but this approach can be slow, tying up your top talent and delaying time-to-market.
On the other side, engaging with agile external partners –specialised vendors, start-ups, or even collaborative networks with suppliers and customers –can rapidly infuse your organisation with cutting-edge tools and fresh ideas. Yet, over-reliance on external resources risks diluting your strategic control and may lead to a commoditised advantage.
The key for a CEO is to strike the right balance: invest internally where unique, core capabilities are essential, while leveraging external partners to accelerate progress.
The legacy of bold leadership
None of these imperatives is easy. They demand clarity, courage and constant learning from the CEO. But this is what the moment requires. AI will reshape industries and separate the leaders from the laggards. This is a once-in-a-generation leadership moment.
Your legacy as chief executive will not hinge on your coding skills or your ability to recite tech jargon – it will be defined by how boldly and wisely you lead your organisation through the age of AI. The choices you make now will echo for decades.
So ask yourself, as you stare down this transformative opportunity: What legacy will you leave?
Dr Kellie Nuttall is AI Institute Leader at Deloitte Australia.
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