You’ve probably seen headlines like this recently: “XXX corporation appoints its group AI officer”
It seems like large corporations are jumping on the artificial intelligence bandwagon, either to transform their business or, more often, to convince customers and shareholders that they’re doing something about AI.
This trend reminds me of the “ESG” -- environmental, social and governance -- movement from just a few years ago. Back then, companies rushed to incorporate ESG initiatives, not necessarily because they believed in them, but because it looked good and helped their image. Every company seemed to appoint an “ESG officer” and create entire divisions to make sure they met their self-imposed guidelines.
Now, AI is the new buzzword in business. But simply claiming to be "using AI" isn't enough. To truly integrate AI into a business, you need to understand what AI can and cannot do. Just having a background in AI or working in an AI-related field does not make someone an AI expert.
The real experts are those who have developed actual AI products or models that have been used by real customers and generated revenue. Unfortunately, many of these “AI officers” in large corporations probably don't have this kind of hands-on experience. If they did, they might have chosen a different path than working in a corporate setting with a lofty title. I’d also be skeptical if well-known global consulting firms offered advice on AI integration.
If a company is truly serious about using AI to transform its business, they should consider investing in AI-focused startups.
A financial institution looking to use AI might invest in a financial technology company that uses AI to develop innovative financial products. This approach allows innovation to thrive without interference from corporate bureaucracy. Once the startup creates superior products, the larger company can integrate AI into its offerings.
This is the same strategy that successful IT companies have used to grow: acquiring smaller, innovative companies with cutting-edge ideas.
So, the next time you hear about a corporation appointing a “Group AI Officer” or making an AI-related announcement, take it with a grain of salt. More often than not, these moves are more about appearances than genuine innovation.
Tae H. Park
Tae H. Park is a professor of finance at Concordia University. He served as deputy chief investment officer at KIC and CIO at Shinhan Asset Management. The views expressed here are the writer’s own. — Ed.
