Why CEOs are Taking Direct Control of AI Strategy?

Historically, chief executive officers have not personally led technology initiatives. Outside the tech industry, CEOs typically left technical decisions to CIOs, CTOs and other technology leaders. Rarely did technologists rise to the CEO role in non-tech sectors.

But that is changing.

With the rapid adoption of advanced artificial intelligence including generative AI and agentic AI more CEOs are stepping directly into the AI driver’s seat.

CEOs Are Personally Leading AI Decisions

A recent survey by Boston Consulting Group found that:

• 70% of bank CEOs say they are the primary decision-makers for AI in their organizations
• 54% say their job stability depends on getting AI strategy and investments right
• CEOs spend nearly seven hours per week expanding their AI knowledge

“CEOs are leaning in,” said Vladimir Lukić, global leader of BCG’s Tech and Digital Advantage practice, in an interview with American Banker.

According to Lukić, CEOs understand that driving AI transformation requires difficult conversations, including changes in personnel, incentives and operational structures. These decisions often land directly on the CEO’s desk, making AI leadership both time-consuming and emotionally demanding.

“They're spending a lot of time on this,” he said.

Removing Internal Bottlenecks

One major reason CEOs are taking control of AI efforts is to eliminate organizational roadblocks.

Companies often operate in silos with entrenched processes and internal “fiefdoms.” Successful AI implementation frequently requires:

• Changing standard operating procedures
• Adjusting performance incentives
• Breaking down internal barriers

Where AI efforts succeed, Lukić says, it’s often because the CEO personally removes these obstacles and authorizes change.

Executives who initially experimented with AI but saw limited results are realizing that without direct involvement, progress stalls. As a result, they’re becoming more hands-on.

AI Is Different From Traditional Tech

Bradley Leimer, former head of innovation at Santander Bank and now principal consultant at Leimer One Advisors, believes the nature of AI itself explains CEO involvement.

AI is not just infrastructure. It can directly assist leaders with:

• Writing
• Planning
• Data analysis
• Communication
• Strategic decision-making

“Leaders can feel it,” Leimer said.

Unlike previous technology waves, AI reshapes how every function operates, including the CEO’s own role. It affects strategy, talent management, communication and decision-making across teams and silos.

Because of its broad influence, AI cannot simply be delegated. It introduces complexity and risk that demand executive oversight.

Driving Efficiency and Growth

For many CEOs, AI presents a powerful efficiency opportunity.

Some leaders envision:

• Doing the same work with 50% fewer staff
• Doubling growth without adding employees

The financial commitment reflects this ambition:

• 46% of CEOs expect to invest over $50 million in AI by 2026
• On average, organizations plan to allocate 2% of total revenue to AI
• 32% of AI investment is going into AI agents

At Grasshopper Bank, CEO Mike Butler formed an internal efficiency committee focused on identifying time-saving AI use cases.

Employees contributed ideas on how AI could simplify their work. Adoption rose quickly.

The bank recently used AI in compliance processes, saving hours of labor and avoiding the need to purchase additional regtech software.

Addressing Cultural Resistance and Job Fear

AI adoption isn’t just technical. it’s cultural.

“There is still fear of job loss,” Butler said.

To reduce anxiety, Grasshopper made it clear AI is about improving efficiency, not cutting jobs. The focus is on avoiding future hires rather than eliminating current roles.

Butler believes engagement is critical. Employees who actively contribute AI ideas become influencers and positive contributors to company culture.

Grasshopper provided Google Gemini to all employees and monitored usage. Training sessions helped drive adoption, leading to a significant increase in AI engagement.

Improving Client Engagement Through AI

Grasshopper’s next AI phase focuses on customer experience.

The bank launched a product allowing small-business clients to use AI to better understand cash flows within their business accounts.

This creates client stickiness.

“How could they ever go to another bank that doesn't have that?” Butler asked.

The broader goal is to:

• Speed up credit decision turnaround times
• Answer client questions faster and more accurately
• Provide better financial insights
• Improve service without increasing staffing

Making Long-Term Strategic Decisions

Vladimir Lukić attends the World Economic Forum Annual Meeting in Davos every year. Previously, his discussions were mostly with CIOs and CTOs. This year, nearly all his meetings were with CEOs.

Many CEOs asked detailed technical questions about hyperscalers, model performance and cost structures.

Because technical decisions made today could impact the company for decades.

Lukić notes that technology teams often favor familiar tech stacks, sometimes limiting future flexibility. Meanwhile, many banks are still dealing with expensive tech debt from decisions made 15–20 years ago.

CEOs now recognize that AI-related infrastructure decisions will have ripple effects over the next three to five years and possibly the next twenty.

FOMO and Board Pressure

Another factor is fear of missing out.

Some CEOs attend AI forums and see competitors advancing.

“They’re like, others are doing it, even if I don’t fully get it,” Lukić said.

In some cases, AI leadership is defensive. Boards and investors expect visible progress. CEOs feel pressure to demonstrate they are actively pursuing AI transformation.

The Bigger Shift

AI is no longer just a technology project. It affects:

• Strategy
• Operations
• Culture
• Client engagement
• Workforce planning
• Long-term infrastructure decisions

Because of this broad impact, CEOs are stepping in directly.

For many, AI leadership isn’t optional. it’s becoming central to their role and, in some cases, to their job security.