IBM Study: Chief AI Officer Is The Key To ROI, But Indonesia Is Still Left Behind

JAKARTA - A global study of IBM Institute for Business Value (IBV) shows that Asia Pacific is leading the trend of appointing Chief AI Officer (CAIO), to drive AI strategies and executions across companies.

Business considerations for owning the CAIO are getting stronger, as globally, organizations that own the CAIO recorded a 10% higher return on investment (ROI) in their AI investments.

But currently, this IBM report sees only 27% of organizations in Asia Pacific (APAC) and 26% globally have pointed to CAIO. In Indonesia, the figure is even lower at 17%.

The study shows that CAIO in Indonesia is facing a measurement paradox. A total of 89% assessed that organizations were at risk of lag without AI impact measurements, but 72% continued the project even though the results were not fully measurable.

Executive support is also quite strong, with 83% of CAIO in Indonesia claiming to have the support of the CEO and C-suite ranks. Even so, AI implementation is still limited: 67% of Indonesian companies are still in the pilot stage.

Managing Partner, IBM Consulting Indonesia, Juvanus Tjandra said, Indonesian companies need to consider having a Chief AI Officer (CAIO), to help focus on returning this new technology investment.

"CAIO can help move the company towards measurable and scalable results to encourage cost savings and identify areas where existing employees can improve their skills for further growth," Juvanus explained.

Because according to him, AI is a tool that will empower all stakeholders for a more efficient future.