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Leadership

Strategies, advice and opinions helping to define and develop the role of IT leaders and their staffs.

Succeeding with AI: The CIO's AI Strategy Blueprint

Artificial Intelligence is no longer a buzzword; it's a daily boardroom reality. CIOs are tasked not only with adopting AI but also with translating their "AI promise" into operational and financial value. However, despite board-level urgency and growing enterprise investments, many AI programs still fail to deliver—not due to lack of ambition, but because of a strategic value gap.

Research consistently reveals staggering statistics: 70–85% of AI projects fail to meet their objectives, are abandoned, or never progress beyond the pilot phase. Only a small fraction of organizations successfully scale AI beyond isolated proofs of concept to generate sustainable business value. Understanding why so many AI initiatives stumble is vital for CIOs seeking transformative results.

Focus on Business Value

Estimates indicate that over 80% of AI projects fail to deliver business value, a rate twice as high as traditional IT projects. Moreover, many organizations report scrapping nearly half of their AI proof-of-concept projects before they reach production. With AI promising to transform the way we do work, take over many routine tasks with AI assistants and agents, only some leaders say they've been "very successful" in translating AI strategies into operational outcomes. The question we need to ask is: why does the average business abandon almost half of its AI initiatives?

There are many reasons why organizations fail to generate value with AI, and these are not always technical, but rather strategic in nature. Having misaligned AI initiatives with business strategy can lead to mediocre results. Many projects start with impressive ambitions but lack a clear connection to measurable business outcomes.

Prioritize AI Governance

AI governance is also a key component for success. Without strong governance and cross-functional coordination, projects become siloed, duplicative, or fail to scale. Recent incidents demonstrate that inadequate governance can lead to reputational, financial, and operational consequences. Take, for example, the case of Duolingo, which recently replaced human content creators with AI. This resulted in AI generating questionable and inappropriate content, causing reputational damage to the company. CIOs must recognize this and practice AI governance to oversee ethical implications and quality controls, or risk severe consequences from unmanaged AI deployments.

Another cautionary tale comes from Zillow's AI-powered home pricing venture, Zillow Offers. The company leaned on its acclaimed Zestimate algorithm—trusted to within a few percent—to automate iBuying. However, amid 2021's pandemic-era market swings, the model mispriced homes by 5–7%, forcing Zillow to overpay while competition pulled back. This resulted in significant losses, a 25% workforce cut, and an abrupt shutdown of the program. The lesson for CIOs is clear: even proven AI models can collapse under real-world volatility without robust governance and domain insight.

Select the Right Use Cases

Chasing hype vs. value is an important point to consider. Organizations too often pursue the newest algorithms or AI trends, rather than focusing on problems that AI helps solve for their business. Focusing on the right AI use cases and promoting accountability and oversight are key, and they must go hand in hand with engaged stakeholders and business sponsors. Without engaged business participation, AI projects are often misaligned with business priorities and end up in stalled adoption.

Perhaps the most critical factor in a successful AI strategy is the careful selection and prioritization of use cases. AI use case selection must be a core focus for success with AI, not a box-ticking exercise. Though not every problem is an AI problem, AI can help deliver value across many business problems and challenges. Successful organizations identify and inventory as many possible use cases as possible and prioritize which ones to go after based on feasibility and potential ROI. Here are some points to consider when qualifying AI use cases:

  • Use a prioritization matrix to visualize and compare AI use cases against feasibility and value, as well as any potential risks.
  • Start with "low-to-moderate complexity" and high ROI use cases for early wins.
  • Introduce quality controls and secure stakeholder buy-in before progressing.

Implement Data Strategies

To win with AI, CIOs must have robust data strategies upon which to build their AI strategy. Establishing standards for data quality, access, compliance, and security from the outset is crucial. AI experiments should not be treated as ad hoc, but rather should be considered part of the enterprise-wide ecosystem. It is best to avoid fragmented, department-specific deployments that increase risk and hinder scaling.

Scaling AI

Many AI models remain academic experiments or never go beyond that "proof of concept" stage. If these experiments are not integrated into live workflows, they cannot drive business value. This means CIOs must elevate their role beyond technology stewardship to enterprise-wide AI adoption for value creation.

Generative AI isn't an isolated IT project—it demands an active, ongoing partnership with the business, especially the C-suite. For an AI strategy to succeed, every initiative must align explicitly with business goals, such as revenue growth, operational efficiency, customer experience, or risk reduction. Success metrics need to be defined up front by asking, 'What business results will prove this use case to be worthwhile?' Above all, CIOs must engage senior leaders and stakeholders early to ensure clarity, buy-in, and the change management needed for adoption at scale.

Collaboration is essential when it comes to winning with AI. Stakeholder engagement across functions is vital to surface real pain points and innovation opportunities. We also must start with the business challenge statement: what are the goals (cost, revenue, CX), and where are the bottlenecks or inefficiencies?

Creating the AI Blueprint

A successful AI strategy starts with crafting a bold vision—AI must sit at the heart of digital transformation, not as a bolt-on experiment. Governance and infrastructure come next: security, compliance, and ethical oversight must be built in from day one. Winning CIOs break silos, mobilizing cross-functional teams to align AI efforts with business priorities. They identify and ruthlessly prioritize high-value, feasible AI use cases, tracking performance rigorously. Success depends on deliberate scaling—moving pilots to production only when measurable value is clear. And underpinning it all is talent and change management: building an AI-ready workforce capable of adapting and scaling with the business. The message is simple: strategy, discipline, and execution will separate the AI leaders from the laggards.

The AI era presents a historic leadership opportunity for CIOs. This isn't about luck or tinkering with AI experiments. It is about turning AI's promise into measurable business outcomes. We need to approach AI as an enterprise-wide transformation, anchored in a clear strategy, effective governance, and the rigorous selection of the right use cases. Those who define their AI strategy today are going to be the winners and leaders of tomorrow. For CIOs with vision and discipline, the future is theirs to shape.


Alina Rivilis is the CEO and co-founder of AI Future Leaders, delivering AI education that blends technology, leadership, and creativity. A seasoned AI executive with over 25 years of experience, Rivilis brings expertise in AI, data science, strategy, and innovation. She currently serves as Director of Data Science & AI at Home Trust Company and is a part-time faculty member at Northeastern University. Inspired by her role as a parent and tech leader, Alina launched AI Future Leaders to close the gap between traditional education and the demands of an AI-driven world. A finalist for the Women in AI Awards, she is a passionate advocate for responsible AI, youth empowerment, and inclusive innovation.

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