Rethinking and realigning IT for the AI era
CIOs from a range of industries discuss how AI’s emergence as a transformative force is leading them to adapt and reimagine how IT operates to better harness the technology’s potential to revolutionize their business. As far as Jason Johnson is concerned, AI is as transformative as the invention of the tractor. “Just as farmers expanded their operations from two acres to 200 acres upon the tractor’s introduction, our role is to equip our staff to explore their ‘200 acres,’” says Johnson, senior vice president and CIO of Sweetwater, a $1.5 billion online retailer of musical instruments and audio equipment. This involves restructuring IT through training, demonstrations, and advocacy, Johnson says. It is “reminiscent of the period when computers first started gaining traction in enterprises during the 1960s and 1970s.” Just as IT found itself having to pivot through other significant changes, including cloud migration, SaaS adoption, DevOps, and digital transformation, organizations are scrambling to adjust to a world increasingly moving toward automation. AI has blown in like a freight train — barreling into organizations at a frenetic pace, adding more stress and urgency as they consider what applications to deploy. This requires IT leaders to rethink how IT is staffed and organized, and how IT works with the business to capture the value and promise of AI in its many flavors — generative AI, agentic AI, and machine learning. “Despite how fast any of those other shifts have been … the pace with AI is something we simply have not seen before,” notes Mike DiBenedetto, CIO of Northland Investment, a multi-family investor, owner, and manager. More than two-thirds (68%) of this year’s State of the CIO IT leader respondents say that AI has already — or is starting to — reshape operations, and 80% say they are researching and evaluating adding AI to the tech stack. As a result, there is little doubt IT leaders have to realign their departments for the AI era. To harken back to the tractor analogy, many are plowing through with a clear sense of purpose. Enhancing efficiencies It has long been a mandate that IT develop new services and evolve teams and processes to meet the need for transformation. But like DiBenedetto, Johnson says that “with the introduction of AI, this pace of change has increased significantly. AI provides tools and assistance that help IT teams keep up with changes, even when facing constraints and pressures to achieve more with fewer resources.” To meet these changes head on, Johnson has created cross-functional teams to enable and empower both IT employees and customers through AI. “We collaborate closely with our legal and compliance teams to ensure that we use our data, as well as the data we manage on behalf of our customers, in safe and compliant manners,” he notes. “Internally, we have established working groups focused on enhancing efficiencies within IT, such as improving software development processes and reducing service desk resolution times.” Sweetwater also has established an AI center of excellence and has embedded data science professionals into the group. They are helping to design the experiments and pilots to ensure the results are statistically significant and then applying AI in areas that can accelerate the business. Similarly, John Kreul, senior vice president and chief information and digital officer of Jewelers Mutual, is forming dedicated cross-disciplinary teams “focused on our customers to create seamless and personalized journeys.” Those teams are concentrating on microservices, data, and AI platforms that will be leveraged across the organization, Kreul says. Shifting IT to more meaningful work AI has significantly boosted self-service capabilities and case deflection within Workday’s IT team, “so much so that it’s allowed us to reallocate our talented case managers to more impactful, meaningful work,” says CIO Rani Johnson. The team is now building more sophisticated AI chatbots that can resolve a broader spectrum of issues and provide proactive assistance to employees facing IT challenges, she says. “This shift ensures our IT professionals are engaged in higher-value activities that truly leverage their expertise.” A prime example is the AI Insights Widget, which was jointly developed by Workday’s IT and revenue operations teams. The custom generative AI tool tackles a significant pain point for the sales force, Johnson says. “Previously, gathering comprehensive account information was a manual, time-consuming process, often taking one to two hours per account due,” she says. “The AI Insights Widget automates this, freeing up valuable sales time and accelerating their efforts.” A focus on continual improvement, change, and collaboration Others says AI adoption hasn’t significantly changed IT’s focus. While Sweetwater’s Johnson refers to AI as “a pretty big revolution,” deployment of the technology is not really shifting IT’s roles and responsibilities, he says. But as IT builds tools embedded with AI to make the business faster and more efficient, “this is heavily impacting our own internal folks,” whether through automating code reviews, or accelerating software development or business analytics, he says. “It’s forcing us to work closer with the business,” Johnson says. “It’s changing the shape of work from one and done to one of continual improvement and continual change in a way that is … different than what we’ve seen before.” Similarly, DiBenedetto says the advent of AI hasn’t required major structural changes in his IT group, nor when it comes to hiring new staff. “We’re always looking for fit for culture [and] a willingness to learn,” he says. “The concept of being a lifelong learner is certainly a requirement, and we’re always trying to make sure that we can find somebody that fits; somebody who sits in the IT department that can understand, ‘How does my contribution contribute to the overall success of the organization?’” If IT implements an AI engine into an employee work process, the team members need to familiarize themselves with the workflow to ensure it is effective for that employee and has a downstream effect, DiBenedetto says. “We expect that people working on our technology team understand what occurs in a department, whether that’s day
Rethinking and realigning IT for the AI era Read More »