Two-thirds of surveyed organizations in the Middle East now employ a Chief AI Officer, according to new IBM research. This shift formalizes AI leadership as companies move artificial intelligence from isolated experiments to enterprise-wide deployment, requiring oversight that extends beyond traditional IT functions.
Companies are creating dedicated executive roles to oversee AI strategy, governance, investment decisions and value creation. AI is no longer viewed as solely a technology function.
"AI leadership is becoming an increasingly important part of the C-suite," said Lula Mohanty, Managing Partner for the Middle East and Africa at IBM Consulting. "Roles such as the Chief AI Officer help organisations establish clear accountability for AI strategy, governance, value creation and responsible adoption."
Every surveyed CEO working alongside a Chief AI Officer expects the position's influence to grow by 2030. Executives evaluating AI for Executives & Strategy must recognize that this role is a permanent fixture, not a temporary appointment.
Cross-functional leadership challenges
This expansion creates structural friction. Nearly nine in 10 surveyed Middle East CEOs report embedding AI across multiple workflows to improve efficiency, productivity and decision-making.
While chief information officers have historically overseen technology strategy, AI now intersects with workforce planning, customer engagement, operations, finance and risk management. Companies are establishing dedicated AI leadership positions to coordinate this implementation across distinct business units.
"Organisations that succeed will be those that move AI from isolated initiatives to scalable capabilities that deliver measurable business value with trust and governance at the core," Mohanty said. This requires a fundamental shift in how corporate resources are allocated.
The trend is particularly pronounced in the Gulf. Governments have made artificial intelligence a strategic priority through national digital transformation and economic diversification agendas. Executives face growing pressure to balance this innovation with strict governance, compliance and data sovereignty requirements.
Workforce and organizational agility
The emergence of the CAIO is changing expectations for the wider executive team. According to the research, 86 per cent of CEOs believe every functional leader must become a technology expert within their own domain.
Furthermore, 68 per cent say they are decentralizing decision-making to improve organizational agility. This means responsibility for AI can no longer rest solely with technology teams. Chief financial officers, chief operating officers, chief human resources officers and business-unit leaders must all participate in determining how AI is deployed, governed and measured. Leaders seeking an AI Learning Path for CEOs will find decentralization and cross-functional literacy are now baseline requirements.
Executives also face a significant workforce challenge. The study found that 85 per cent of Middle East CEOs believe AI success depends more on employee adoption than the technology itself. Between 2026 and 2028, respondents expect 29 per cent of employees will require reskilling for different roles, while 54 per cent will need upskilling to perform their current jobs more effectively.
As AI becomes embedded throughout organizations, demand is growing for skills in data, automation, governance and cybersecurity. Human capabilities such as critical thinking and adaptability remain equally vital.
Why this matters for executives and strategy
Boards and C-suite leaders must redesign governance frameworks to support decentralized AI decision-making across all business units. Relying solely on the IT department to manage AI deployment will stall enterprise value, making cross-functional literacy and proactive workforce reskilling immediate strategic imperatives.
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