AI is now large enough to justify a dedicated seat in the C-suite. 

Demand for this leadership position is being led by three groups, Praneet Franklin, senior partner and AI practice lead at recruitment firm Search Services, told FinAi News: 

1. Boards and CEOs want single accountability for AI risk and ROI; 
2. Regulators and auditors want clear governance; and 
3. Business unit leaders want a designated person to scale AI safely. 

“Many firms tried to split AI across [chief information officer, chief development officer], head of analytics and business leadership,” Franklin said. “That can work early. At scale, it often turns into fragmented decision-making.” 

Read more: 2025 brings leadership rethink as banks install chief AI officers worldwide 

Ideal candidate

So, who is ideal for this responsibility? 

“The best CAIOs [chief AI officers] I see usually come in two ‘flavors,’ and the right one depends on the institution’s maturity,” Franklin said. Those flavors are: 

• Builder operator: Someone who has led AI/ML platforms. Past roles include head of AI/ML, vice president of data science, AI product leader or a leader inside a bank or fintech. 

• Enterprise governor: Someone with experience in the model risk, enterprise analytics or cross-functional transformation roles. 

Whether the person is a builder operator or enterprise governor, requirements for a CAIO include: 

• A track record of taking AI from proof-of-concept to production; 

• Credibility with engineering and data teams;  

• Comfort operating in regulated environments;  

• Experience with data and platform enablement; and 

• Experience with change management adoption. 

Compensation

Compensation for the role is starting to be tracked. 

The median compensation for a CAIO is $235,000, according to data provided by J. Thelander Consulting to FinAi News. Maximum compensation, according to the consulting firm, is $300,000 and the minimum is $197,500.  

Appointed CAIOs

Daniele Magazzeni started in his position as chief AI officer at UBS this week, according to a post he made on LinkedIn. He joined UBS from JPMorgan Chase, where he spent six years.  

“AI is clearly a strategic priority for UBS, supported by a deep bench of talented professionals across the firm,” he said on LinkedIn. “I am excited to contribute to the next phase of the journey.” 

Other CAIOs at financial institutions include: 

• Pascal Belaud, chief AI and data officer, Truist;

• Ranil Boteju, CAIO, Commonwealth Bank of Australia; 

• Kasper Tjorntved Davidsen, CAIO and head of gen AI, Danske Bank; 

• Oliver Dorler, chief data and AI officer, Commerzbank; and 

• Sarthak Pattanaik, chief data and AI officer, BNY. 

Register here by Jan. 16 for early-bird pricing for the inaugural FinAi Banking Summit, taking place March 2-3 in Denver. View the full event agenda here.