CAIOs Key to AI Success: Up to 36% Higher ROI on AI spend, Finds IBM-Dubai Future Foundation Study

Al Bawaba

2 days ago

A new global study by the IBM Institute for Business Value (IBV), conducted in collaboration with the Dubai Future Foundation (DFF), finds that the United Arab Emirates (UAE) is leading a global shift toward appointing Chief AI Officers (CAIOs) to drive enterprise-wide AI strategy and execution.According to the global study* of more than 600 CAIOs across 22 countries and 21 industries, more UAE organizations are appointing a CAIO role than global peers: 33% of surveyed organizations in UAE have a CAIO, compared to 26% globally. The impact is clear: globally organizations with a CAIO see a 10% higher return on investment (ROI) on AI spend, and those where CAIOs drive a centralized or hub-and-spoke AI operating model can realize a 36% higher ROI on AI initiatives.The report opens with a foreword by His Excellency Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, where he writes: 'AI is not a singular breakthrough, it's ten thousand small shifts. It's cultural. It's institutional. It's a habit. The CAIO will be the one pushing that habit forward – across public administration, healthcare, education and logistics. More than a technologist, the CAIO is a translator between vision and execution, a bridge between strategy and science, and a steward of value across the enterprise.'The report also includes perspectives from other leading UAE entities such as Roads and Transport Authority (RTA) and Dubai Customs, providing a multi-sector view on AI leadership. 'Dubai's early adoption of the Chief AI Officer role reflects our national commitment to a responsible, future-ready government,' said Saeed Al Falasi, Director of the Dubai Center for Artificial Intelligence. 'This study reinforces that CAIOs are strategic enablers and catalysts that drive the city's vision for the future. By empowering these leaders with the right tools, we are setting the stage for scalable, measurable AI impact across key sectors in Dubai.' 'The UAE is setting a global benchmark by embedding Chief AI Officers within organizations, ensuring AI is a strategic enabler across sectors. This is a testament to the nation's foresight in shaping a future-ready economy.' said Shukri Eid, VP and GM, IBM Gulf, Levant and Pakistan. 'As we continue our collaboration with the Dubai Future Foundation, IBM remains committed to helping organizations scale their AI capabilities to drive measurable, long-term impact.' 'By appointing CAIOs early and giving them visibility and budget control, UAE organizations have laid a strong foundation for enterprise AI,' said Lula Mohanty, Managing Partner, Middle East and Africa, IBM Consulting. 'The next step is execution, moving beyond pilots, embedding AI into core business functions and delivering measurable ROI. IBM is proud to partner with UAE clients on this next phase of their AI journey.'UAE CAIOs benefit from stronger leadership supportCAIOs in the UAE are more likely than their global peers to have direct backing from senior leadership:• 90% of UAE CAIOs say they get sufficient CEO support compared to 80% globally.• 86% of UAE CAIOs say they have broader C-suite support, versus 79% globally.• 69% of UAE CAIOs were appointed internally, compared to 57% globally, reflecting a commitment to developing AI leadership from within.CAIO roles in the UAE come with broader mandates and implementation responsibilitiesUAE CAIOs are playing a central role in driving AI strategy and implementation:• 79% of UAE CAIOs control their organization's AI budget, compared to 61% globally.• 62% of UAE CAIOs prioritize building business cases for AI, compared to 45% globally.• 50% of UAE CAIOs list direct AI implementation as a primary responsibility, in line with 48% globally, though 38% of UAE CAIOs find implementation very difficult, compared to 30% globally.Career backgrounds of UAE CAIOs reflect a focus on data and operationsUAE CAIOs bring a mix of technical and operational expertise to their roles:• 69% of UAE CAIOs have a career background in data, similar to 73% globally.• 48% of UAE CAIOs have focused on operations, compared to 38% globally, suggesting a pragmatic, execution-focused leadership profile.AI measurement matters, but action won't waitUAE CAIOs recognize the value of measuring AI outcomes, while maintaining momentum by experimenting and innovating even without perfect metrics:• 76% of UAE CAIOs say their organizations risk falling behind without AI impact measurement compared to 72% globally• 74% of UAE CAIOs agree they initiate AI projects even if they can't measure their effects compared to 68% globallyAI adoption maturity highlights room for growthWhile UAE organizations have made significant leadership investments, many remain in early phases of AI deployment:
• 76% of UAE organizations are still at pilot stages with limited deployment, compared to 60% globally.
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