These days, it’s just as valuable as capital and code. The chemistry between CEO and CTO can determine if a company’s AI efforts succeed or stall out. Their collaboration influences the organization’s ability to deliver real business results.
Yes, some companies are reaping the rewards of AI. The results are real, but they aren’t a given: Those meaningfully adopting AI say the technology met or exceeded expectations for 80% of use cases. But only 23% of companies can tie AI initiatives to new revenue or lower costs, according to a new survey from Bain & Company.
Meaningful progress requires more than another pilot, new vendor, or the next model upgrade. Companies will see real breakthroughs only from a true business-technology partnership. This will look and feel different than before, requiring greater trust, more shared capability building, and faster calls on where to place bold bets—and, equally as important, when to walk away from them. Here’s how CEOs and CTOs can run the AI agenda together.
For CEOs
One practical mindset shift that helps: View your technology function as a mechanism of strategy, not just as a service provider. What does this look like in practice? You can start by routinely inviting your CTO to the table for business conversations. As a leading chief technology officer once shared with me: “If a CFO asks a question about a business, people indulge because that person controls the finances. If it’s a chief marketing officer, people indulge. Somehow, for the CTOs, that is not true. In tech companies, that does happen … But every leadership member has earned the right to be at the table … Listen, and that’s how the company will thrive.”
For CTOs
Today, you face increasing pressure to identify and pursue the most promising sources of value—even when it’s risky.
You know that this business transformation is going to take far more than purchasing best-of-breed packaged software. It will require rearchitecting the tech stack for AI, ensuring data readiness, automating workflows, upskilling employees, and accessing new pools of talent. Few companies are there yet: According to Bain’s survey, 45% cite data security and privacy as a roadblock, making it the top concern, followed by lack of in-house expertise or resources at 39%.
You’ll have to be explicit with your CEO about what you need and the trade-offs required to get there. Perhaps the organization needs to get its development capability back to full strength and bring it closer to the business. You’ll also need a clear-eyed view. Be prepared to make tough decisions, including retiring aging or undifferentiated platforms.
In addition, invite the business into new ways of working, such as first-principles problem solving and test-and-learn practices. In lockstep with your CEO, ensure data and technology are at the heart of every conversation around competitive capabilities and new customer offerings.
Finally, it’s important to keep in mind that, while regular software is deterministic, LLMs are probabilistic. Align with your CEO on your quality thresholds in key domains. What level of error can you accept? What requires human escalation or override? How will you monitor models? Deciding together will build trust and confidence, not just between you but throughout the entire organization.
Organizations that see measurable returns on AI have CTOs who act like product owners and strategic enablers. They are willing to try new things and garner leadership support, even without 100% certainty that those ideas will deliver. With the backing of your CEO, champion innovation and momentum.
Team at the top to win
It takes two—CEO and CTO—to win. One can’t transform the organization without the expertise and experience of the other. The best pairs will fully align on their AI agenda, operating model, understanding of value, risk tolerance, and shared accountability for outcomes.
