As artificial intelligence (AI) continues to reshape the financial sector, many institutions are grappling with how best to govern, oversee, and integrate this transformative technology. The rise of AI has not only introduced new efficiencies and competitive advantages but has also brought challenges in ethics, compliance, and risk management. Given these complexities, some industry experts predict that 2025 could be the year financial organisations widely adopt a new C-suite role—the Chief AI Officer. But is such a role essential, or can existing leadership structures adapt to AI’s demands?
With the case for a Chief AI Officer rapidly building, senior industry figures such as Jon Elvin, Strategic Risk Advisor at Saifr, have suggested that AI is one of the most pressing topics in boardroom discussions today, with some even dubbing it as the ‘holy grail’ of innovation.
Others have been more sceptical, viewing it as a potential minefield of regulatory and operational risks.
According to Elvin, the growing prominence of AI calls for an executive figure who can provide oversight, ensure transparency, and coordinate AI efforts across an organisation.
“It would be prudent for organisations to have an ‘overseer’ or ‘special envoy’ to help shepherd AI,” he says. “This should be a distinct role staffed by a seasoned executive. While the role is not meant to stifle creativity or impede innovation, it should ensure AI is well understood, ethically managed, and strategically implemented.”
But equally, Elvin points out that not every AI experiment will be a success. With errors bound to crop up due to the nature of this development.
Being able to see through the fog on this front will be vital. “Knowing when, where, and how AI initiatives are advancing is important to sound, responsible oversight,” claimed Elvin.
“An overseer role can help measure, communicate, and establish in-progress reviews. They can also set up recovery mechanisms for any implementations where performance degrades or there are unintended consequences,” he added.
What’s the alternative?
Not all experts agree that a standalone Chief AI Officer is necessary. Kate Horgan, Head of Business Development-US at Zeidler Group, instead insisted that financial institutions are already embedding AI governance into their existing leadership structures.
“Time will tell whether we will see a significant increase in Chief AI Officers at financial organisations,” says Horgan. “However, we are undoubtedly entering an era of AI-driven leadership and adaptation. AI task forces and committees are increasingly common, and roles like Chief Compliance Officers and Chief Legal Officers are actively engaging with AI-driven solutions to enhance efficiency.”
So while AI obviously empowers financial institutions to streamline operations, minimise manual workloads, and prioritise strategic growth, a standalone Chief AI Officer may in fact be a step in the wrong direction.
Instead, trusting your businesses current leaders, and putting faith in their ability to adapt to market trends could be a successful strategy.
Horgan explained, “By embedding AI into the core of their business strategies, these leaders are driving a significant shift towards innovation and unlocking the transformative potential of artificial intelligence within the financial sector.”
Centralised leadership or decentralised expertise?
The debate over whether financial institutions need a dedicated Chief AI Officer may ultimately boil down to how each individual firm approaches AI governance.
A recent report by Forbes predicted that the industry’s AI spend is projected to rise from $35bn in 2023 to $97bn by 2027, which represents a compound annual growth rate of 29%, driven largely by AI’s role in fraud detection and compliance.
This surge highlights how financial institutions are prioritising AI to meet regulatory demands and mitigate risk.
With spend rising, institutions are increasingly under pressure to make a call regarding the appointment of dedicated leadership to oversee ethical implementation and regulatory compliance.
A spokesperson from RelyComply, a South African AML platform, explained, “2025 will certainly see greater adoption of valuable AI, but its widespread rollout is still tentative due to strained budgets and underlying risks.”
While many firms already possess data science expertise through CTOs or third-party partnerships, these figureheads would ensure AI practices are optimised, transparent, and aligned with emerging regulations.
Anthony Quinn, CEO of Arctic Intelligence, concurred with the sentiment, believing that the growing ubiquity of AI in financial services makes a strong case for a dedicated leader.
“2025 could well be the year we see the emergence of the Chief AI Officer role,” says Quinn. As AI becomes far more widely adopted and integrated into day-to-day operations and the technology solutions that supports these having a dedicated leader to oversee the logical and ethical use of AI is no longer optional—it’s essential. Without this role, the alternative may result in fragmented oversight, which may also increase the likelihood of compliance gaps and ethical missteps”.
Is 2025 the year?
Igniting efforts to refine AI strategies, bridge gaps between compliance and technology, and ensure institutions remain ahead of regulatory expectations, a Chief AI Officer could be the silver bullet RegTech firms need to fully unlock the potential of AI across the space.
Some companies may benefit from a single executive overseeing AI strategy, while others may find that their existing leadership teams—bolstered by AI-focused committees and external advisory groups—are sufficient.
What we do know, is that AI will certainly be a major talking point, and may even dominate headlines more than it did over the last 12 months.
As senior industry leaders and researchers are all sure of its impact, leading the charge in relation to the transformative technology is key.
A RelyComply spokesperson emphasised this significance to other industry incumbents, stating, “For the earliest innovators pushing the envelope, appointing AI Officers provides a leader to optimise AI practices, transparency, and education—and their influence will only grow when sophisticated, more strictly regulated AI usage will soon be required at every level of an organisation.”
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