Senior leaders at Dell are calling on businesses in the Asia-Pacific region to appoint chief AI officers and adopt a “top-down” strategy for AI initiatives. While 2024 will see early adopters experimenting with AI, Dell expects a major shift in 2025, shifting from pilot projects to fully integrated AI systems that generate measurable returns.
John Roese, Dell’s global CTO and chief AI officer, pointed out that the real challenge isn’t the technology itself but developing an effective organizational strategy for AI adoption. He stated that without a chief AI officer backed by board support, efforts to prioritize AI projects could falter due to budget constraints and competing initiatives.
Dell’s president for Asia Pacific, Peter Marrs, noted that during his discussions with CTOs and CEOs, he observed many companies struggling with too many simultaneous AI projects, which often leads to confusion and inefficiency. He highlighted a case where one customer was juggling over 300 AI projects. To streamline these efforts, more firms are now creating chief AI officer roles to guide their strategies.
Marrs also mentioned that while companies are forming AI committees including representatives from areas like marketing and manufacturing, the chief AI officer ultimately leads these teams. Some CIOs are taking on dual roles, but there’s a clear trend of dedicated investment in AI leadership.
Roese further emphasized that the biggest issues with AI implementation are organizational, not technological. Companies are beginning to figure out the “how” of AI, but establishing a clear organizational structure remains a significant hurdle. He stressed the importance of having an empowered leader who can make decisive moves in AI strategy, even if it means facing dissent from other leaders.
Dell has carefully structured its AI initiatives by requiring all projects to receive approval from key leaders, preventing the chaos that can arise from decentralized decision-making. Roese believes this approach is essential to avoid misaligned priorities, which can stifle progress.
As for ROI, Dell anticipates the benefits from AI will start to appear in 2025, driven by cost savings and improved margins as companies refine their AI applications. Roese explained that most AI tools are now standardized and can be quickly implemented, negating the need for custom solutions. With the right projects and a strategic approach, businesses can achieve substantial returns, making the investment in AI a more attractive proposition.
