CTO of the Future

The CTO role is evolving as AI-powered technologies like machine learning and natural language processing redefine product development, innovation cycles, and customer experience. CTOs spearhead the integration of AI into technological roadmaps, ensuring organizations stay at the forefront of innovation in their respective industries1.

The CTO of the future is a leader who can harness the power of AI and Gen AI to create value, orchestrate technology and data, scale solutions, and manage risk for their organization. They are also a learner who can adapt to the fast-changing and uncertain AI environment and customer needs.

The CTO of the future needs to have a deep understanding of their industry’s challenges, opportunities, trends, and best practices, and be aware of the specific use cases and applications of AI that can create value for their industry and its customers. They also need to align the AI strategy and solutions with the company’s value proposition, customer segments, and revenue streams, and consider the company’s resources, capabilities, partnerships, and cost structure when designing and implementing AI solutions.

The CTO of the future needs to combine the strengths and capabilities of different CTO archetypes, depending on the type and nature of their company’s business model and the type and scope of their AI projects and initiatives. They need to be visionary, builder, orchestrator, and guardian at the same time, or adopt different archetypes to suit different situations and goals.

According to McKinsey, CTOs need to embrace nine actions to create value, orchestrate technology and data, scale solutions, and manage risk for generative AI2. These actions include:

• Define the AI vision and strategy for the organization

• Identify and prioritize the most impactful use cases for generative AI

• Establish a robust AI governance framework and ethical principles

• Build and nurture a diverse and inclusive AI talent pool

• Foster a culture of experimentation and collaboration across the organization

• Leverage cloud platforms and open-source tools to accelerate AI development and deployment

• Implement agile and DevOps practices to ensure quality and reliability of AI solutions

• Monitor and measure the performance and impact of AI solutions

• Continuously learn and adapt to the changing AI landscape and customer needs

CTOs also play a key role in protecting the organization’s data and intellectual property from the potential risks and liabilities of generative AI. They need to ensure that user privacy and data security are prioritized and integrated into the company’s technology strategy3. Some of the measures they can take are:

• Educate and train the users and stakeholders on the benefits and limitations of generative AI

• Implement data encryption, anonymization, and access control mechanisms

• Isolate and secure source code repositories and AI models

• Validate and audit the quality and accuracy of the generated content

• Detect and mitigate any malicious or harmful use of generative AI

CTO archetypes

There are different archetypes of CTOs depending on their background, skills, and responsibilities. Some of the common ones are:

• The Visionary: This CTO is focused on the big picture and the long-term goals of the organization. They are constantly looking for new and innovative ways to leverage AI and other emerging technologies to create value and competitive advantage. They are also good at communicating and inspiring others to follow their vision.

• The Builder: This CTO is hands-on and technical. They are involved in the design and development of AI solutions and products. They are also adept at solving complex and challenging problems with AI. They are always learning and experimenting with new tools and techniques.

• The Orchestrator: This CTO is skilled at managing and coordinating the various aspects of AI projects and initiatives. They are responsible for aligning the AI strategy with the business objectives and stakeholder expectations. They are also good at facilitating collaboration and integration across different teams and functions.

• The Guardian: This CTO is vigilant and cautious. They are concerned with the risks and implications of AI for the organization and its customers. They are responsible for ensuring the compliance and security of AI solutions and data. They are also good at establishing and enforcing the ethical and legal standards for AI.

How CTO role correlates with the types of innovations

The CTO role correlates with the types of innovations in the sense that the CTO needs to identify, prioritize, and implement the most impactful and relevant AI projects and initiatives for their organization, depending on the type and scope of the innovation. The CTO also needs to adopt different archetypes or combine them to suit the innovation goals and challenges.

Efficiency Innovation: Efficiency projects are those that aim to improve existing processes, services, or products, increasing their efficiency, quality, or frugality. A CTO of an efficiency innovation project needs to be a builder, an orchestrator, and a guardian. They need to design and develop AI solutions that enhance the efficiency, quality, or frugality of existing processes, services, or products, manage and coordinate the AI projects and initiatives that optimize existing processes, services, or products, and ensure the compliance and security of AI solutions and data.

Differentiation Innovation: Differentiation projects are those that aim to increase the attractiveness and competitiveness of the customer in the market, by introducing new or improved features, services, or products. A CTO of a differentiation innovation project needs to be a visionary, a builder, and an orchestrator. They need to envision new or improved features, services, or products with AI that increase customer value and loyalty, design and develop AI solutions that introduce new or improved features, services, or products, and manage and coordinate the AI projects and initiatives that introduce new or improved features, services, or products.

Transformation Innovation: Transformational projects are those that aim to change the way the client functions and develops, by introducing new business models, processes, or technologies. A CTO of a transformation innovation project needs to be a visionary, a builder, an orchestrator, and a guardian. They need to imagine new ways of functioning and developing with AI that disrupt the industry and create competitive advantage, design and develop AI solutions that enable new business models, processes, or technologies that disrupt the industry and create competitive advantage, manage and coordinate the AI projects and initiatives that transform the way of functioning and developing, and ensure the compliance and security of AI solutions and data.

How CTO role correlates with company business models or business model archetypes and how its mapping on CTO archetypes

The CTO role correlates with the company business models or business model archetypes in the sense that the CTO needs to align the AI strategy and solutions with the company’s value proposition, customer segments, and revenue streams. The CTO also needs to consider the company’s resources, capabilities, partnerships, and cost structure when designing and implementing AI solutions. Depending on the type and nature of the company’s business model, the CTO may need to adopt different archetypes or combine them to suit the company’s needs and goals. For example, a CTO of a multi-sided market business model may need to be a visionary, an orchestrator, and a guardian, while a CTO of a subscription business model may need to be a builder, an orchestrator, and a guardian.

A possible mapping of CTO archetypes in different business model archetypes could be:

• Multi-sided market -Visionary, Orchestrator, Guardian

• Freemium - Builder, Orchestrator, Guardian

• Subscription - Builder, Orchestrator, Guardian

• Hidden Revenue - Visionary, Builder, Guardian

• Affiliate - Visionary, Builder, Orchestrator

• Platform - Visionary, Builder, Orchestrator

How CTO role correlates with Industries and how its mapping on CTO archetypes

Industry CTO Archetype

• Retail - Builder, Orchestrator, Guardian

• FSI - Builder, Orchestrator, Guardian

• Energy - Visionary, Builder, Orchestrator

• Healthcare - Visionary, Builder, Orchestrator

• Education - Visionary, Builder, Guardian

• Manufacturing - Builder, Orchestrator, Guardian

The CTO of the future will need to combine the strengths and capabilities of these different archetypes to successfully lead and navigate the organization in the age of AI and Gen AI. They will need to be visionary, builder, orchestrator, and guardian at the same time. They will also need to be adaptable, resilient, and curious to cope with the fast-changing and uncertain AI environment. 🚀