How Should You Structure Your Technology Organization in the Face of GenAI?

Author: Tony Leng, Managing Partner at H.I.E.C

The rise of Generative AI (GenAI) has sparked critical conversations about how organizations should be structured to maximize their potential. One key question is: where should a GenAI leader fit within the hierarchy? After discussing this with leading Top Technology Officers (TTOs = CIO, CTO, CDO), here’s a comprehensive guide on structuring your technology organization to fully leverage GenAI.

The Importance of Centralized Leadership for GenAI

In any organization, technology leadership should be unified under one person who reports directly to the CEO. With GenAI’s transformational potential, it’s vital to structure the role of a GenAI leader correctly. Below is an organizational chart illustrating how GenAI leadership typically integrates with other technology roles, emphasizing the central role of data as the foundation for both Digital Transformation and GenAI initiatives.

Data at the Heart of GenAI

Data is the lifeblood of digital initiatives and is crucial to the success of GenAI. As organizations continue to evolve, data’s importance has only grown, particularly with the introduction of unstructured data and the complexities of GenAI models. The significant differences GenAI introduces include:

• The inclusion of unstructured data from internal and external sources.
• The complexity of models used.
• The increased compute and storage capacity required.

Structuring Your Technology Organization for GenAI

Your business model design plays a critical role in determining how GenAI will be integrated into your organization. The goal is to bring IT as close to the business and customers as possible while ensuring all systems connect to a common data platform. This interconnectedness must be faster, deeper, and more effective with GenAI, likely rewiring how your business operates.

The Evolving Role of the Chief Data Officer (CDO)

Data drives revenue, product development, efficiency, and overall value creation. Many organizations have recognized this by appointing Chief Data Officers (CDOs) to oversee Data Engineering, Data Management, and Value Creation. However, the rise of GenAI has heightened the importance of the CDO role, with several key differences:

1. Broad Business Impact: GenAI influences all business areas, including Finance, HR, Sales, and Legal. Establishing a cross-functional committee is essential.
2. Value-Driven Use Cases: Focus on high-value use cases with measurable results and tight feedback loops.
3. Leadership and Engagement: Leaders need strong business acumen and the ability to engage effectively with GenAI ecosystems. Understanding data sharing, vendor negotiations, and market evolution is crucial.
4. Tech and Business Acumen: Leaders must comprehend both the technology and its business impact. Managing model drift and continuous learning is vital.

Practical Applications of GenAI

Organizations are already testing GenAI with platforms like M365, SAP Jewel, AWS, Oracle, and ServiceNow. The applications range from visual quality control in manufacturing to compliance, knowledge management, code generation, and marketing idea generation. As GenAI evolves, its impact could be as transformative as the Internet, fundamentally altering business models and operational processes.

Essential Leadership Skills for GenAI Initiatives

Effective leadership is crucial for guiding an organization’s GenAI initiatives. Here are some characteristics to look for in a GenAI leader:

• Cultural Affinity: Understanding the transformation that GenAI will bring.
• Deep AI and Data Skills: Expertise in both traditional AI and Generative AI.
• Experience in Trust & Ethics: Familiarity with legal, social, regulatory, governance, and risk management issues.
• Business Strategy and Commercial Acumen: Ability to navigate the impact on business models.
• Influence and Collaboration: Capacity to build consensus and partner across the organization.
• Tech Ecosystem Knowledge: Understanding of the technology and partner ecosystem.

Next Steps for Implementing GenAI

To effectively integrate GenAI into your organization, consider the following steps:

1. Appoint a GenAI Leader: This could be a Chief Data Officer, Chief GenAI Officer, or a similar role.
2. Establish a Governance Committee: Ensure Responsible AI (RAI) practices, including transparency, explainability, interpretability, IP risk management, liability, compliance, and information security.
3. Start with Quick Wins: Focus on well-defined, high-impact initiatives, but also plan for the medium- and long-term impacts on staff, business models, and operations.
4. Invest in Education and Training: Begin programs to educate and train staff on GenAI.
5. Modernize Your Data Platform: If not already in process, modernize your data platform to ensure it supports your GenAI initiatives effectively.

Key Takeaways

• Centralize leadership for GenAI initiatives.
• Prioritize data quality and governance. Your RAG will become increasingly important.
• Leverage GenAI to drive business value across all departments.
• Appoint a cross-functional committee to oversee GenAI impacts.
• Maintain flexibility and agility in leadership and technology strategy.

For personalized guidance on structuring your technology organization to harness the power of GenAI, contact Tony Leng at H.I.E.C. Tony specializes in helping companies navigate transformative technologies and build leadership teams that drive success.

About the Author

Tony Leng
Managing Partner at H.I.E.C

Tony Leng is an expert in technology leadership and organizational transformation. His practice spans multiple industries, helping companies integrate cutting-edge technologies like GenAI into their business strategies. He specializes in retained searches for senior IT executives, including CIOs, CDOs, CTOs, and other key technology leadership roles.