The Importance of CEO AI Leadership

Author

Charlene Li
July 28, 2025

If your CEO isn't actively involved in your AI efforts, you're fighting an uphill battle.

AI might seem like a technology issue at first glance, but it’s really a business transformation. And business transformations require CEO leadership.

A recent study from BCG and MIT Sloan proved this point dramatically. Organizations where CEOs led AI efforts saw great business value 34% of the time, compared to just 17% when CIOs led the charge.

Who wouldn’t want to double their success rate?

Why CEOs Make All the Difference

When I work with organizations struggling to scale their AI initiatives, I see the same pattern: brilliant pilots that never move beyond the pilot stage. It’s a familiar scene.

This happens because without CEO involvement, departments chase “cool tools" instead of scaling AI for a higher level of strategic impact. They optimize for efficiency in silos rather than transformation across the enterprise.

But when CEOs lead AI efforts, something magical happens:

🔹 They connect AI to business goals. Instead of a technology push, you get a business pull. The CEO says, "These are our top three strategic objectives. How can AI help us achieve them faster, better, cheaper?"

🔹 They drive cross-departmental alignment. The biggest and most successful strategic initiatives cross departmental boundaries. Only CEOs have the authority to orchestrate such collaboration.

🔹 They control resources. CEOs can reallocate people, adjust timelines, and move funding based on AI priorities. When AI becomes strategic (not just tactical), it gets the resources it needs.

🔹 They signal that experimentation matters. This breaks the inertia of endless pilots. When the CEO champions experimentation, the organization moves from analysis paralysis to action.

When a CEO is Reluctant to Lead AI

Many CEOs feel iffy about leading AI initiatives because they feel out of their depth. The most common objections I hear from CEOs include:

🔹"I'm not a tech person. That's IT's job." 
Your AI strategy is about growth and competitive advantage. Ask yourself: If AI could help you achieve your top three business objectives faster, would you want to know more?

🔹"It's too early. Things are changing too fast." 
Here's a tough truth: The tech you have today is the worst tech you'll ever use. It only gets better from here.  How quickly can you learn to extract value from it?

🔹"Show me the ROI first, then I'll get involved." 
You don't need ROI to justify exploring how AI supports your existing strategic goals. Start with exploration and go from there.

🔹"I don't have time for this."
Here’s a question for CEOs: If you believe AI will be transformational but can't find 15 minutes to champion it, what message does that send?

The Roadmap for Effective AI Leadership

Here's what impactful leadership with AI looks like:

1. Start With Business Growth Questions

Where are you most vulnerable? What are your biggest opportunities? Where are you underperforming? If AI could address these strategic challenges, wouldn't you want to explore it?

2. Create an AI Learning Playground

Roll out AI tools broadly across your organization. Put responsible use policies in place. Provide training. Then (and this is crucial) use the tools yourself.

Leaders who don't use AI can't lead AI transformation. Your top two levels of executives must be actively experimenting, because everyone else will follow their lead.

3. Frame AI as a People Strategy

You can't promise people they'll have jobs forever, but that’s never been the case. Instead, you can promise to prepare them. Provide them with training, tools, and opportunities to use AI to enhance their work and maximize their potential.

Frame it this way: "While you're here, we'll help you become incredibly valuable by teaching you to work with AI. These skills will serve you anywhere you go."

4. Keep AI on the Leadership Agenda

Have quarterly AI strategy check-ins. How is AI supporting your business strategy? What value did we create last quarter? What do we expect to deliver next quarter?

Your board needs regular updates, too. If AI is truly transformational, it should be included in board discussions.

Inspiring CEO Leadership

If you're a CEO reading this, what will you do this week to signal that AI is important?

If you're trying to get your CEO involved, here's your action plan:

  • Tie AI to your CEO's top business objectives

  • Bring them a simple AI win that supports strategic goals

  • Suggest an AI experiment they can participate in directly

  • Recommend adding AI to board updates

Remember: You don't need your CEO to become an AI expert. You need them to become an AI champion.

The organizations that get this right will have a massive competitive advantage. The ones that don't will find themselves fighting for talent, customers, and relevance.

Which side do you want to be on?

🗣️ Your Turn

How involved is your CEO in your AI efforts? What's working, and what resistance are you facing?

If you’re a CEO, how are you choosing to lead AI at your organization?

What I Can’t Stop Talking About 

  • If you’ve been having an identity crisis over AI, you’re not alone. Fear of AI has increased from 11% to 22% in just 4 months. But here’s what those numbers really mean for employees and fearful leaders alike.

  • Join My AI strategy community. I’m co-leading the Samudra AI Innovation Exchange which is a community for senior leaders driving strategic AI applications inside their organizations. If you're looking for a place to exchange ideas with trusted peers—and want direct access to me as you build your roadmap—this is for you. It’s an intimate, high-impact group with limited capacity, so if you’re curious, learn more and apply here, or feel free to reach out to me directly.

  • AI is changing everything, and for workers with repetitive jobs, it signals a shift in identity. Here’s how leaders can support workers through uncertain times.

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