Where do you see the major shift in the priorities for CIOs in the last decade? Does this shift also mean that the role of the CIO has changed/is changing?

Over the past decade, the priorities of CIOs have shifted significantly, primarily driven by technological advancements and evolving customer needs. Previously, most of them focused on managing IT infrastructure, cost optimisation, business support, and operational efficiency. Their roles were largely centred around maintaining stable and secure IT environments and implementing business projects and enhancements. Whereas this has moved significantly to a focus on digital transformation, innovation, and enabling business growth. CIOs are now expected to be strategic partners within organisations, leveraging emerging technologies like cloud computing, artificial intelligence, and big data analytics to enhance customer experience and create competitive advantages. While operational efficiency remains crucial, it now intersects with the broader business strategy. Cybersecurity has become a top priority due to increasing threats, and there is a greater emphasis on agility and scalability to respond quickly to market changes. Additionally, CIOs play a critical role in fostering a culture of continuous learning and digital adoption across their organisations. This evolution reflects the growing importance of technology in achieving organisational goals.

Operational efficiency is still high on the agenda, but today, that is much more complex than just reducing costs, isn’t it? How can they manage that complexity? 

Operational efficiency goes beyond merely cutting costs; it's about achieving more with fewer resources while enhancing agility and resilience. At PwC, we observe Tech leaders tackling this challenge by streamlining operations through advanced process automation and optimisation to refine business processes. They integrate new technologies, not just for automating but for reengineering and improving processes. There is a continued effort within organisations to decommission legacy systems and adopt cloud-based solutions, which, despite their complexity and cost, offer flexibility, enhanced user experiences, and access to advanced technologies like built-in AI agents.

Furthermore, CIOs must evolve from being mere technology suppliers and cost centres to becoming innovative business partners and service orchestrators. This transformation involves implementing lean IT governance principles that promote efficiency and effectiveness, adopting agile practices to enhance technology delivery, fostering cross-functional collaboration between IT and business units, and establishing IT performance frameworks to identify areas for improvement and drive continuous enhancement.

Modernising legacy systems and transitioning to the cloud are key themes in technology strategy. What pitfalls should CIOs avoid when embarking on these initiatives, and what approaches deliver the most significant results?

It all begins with a clear business and technology strategy to ensure that technology supports and enables, rather than dictates, the overall vision. It's essential for cloud initiatives to align with business objectives, considering factors like security, compliance, and cost. The financial aspect is crucial from the start, with a significant focus on "FinOps," a collaborative approach to optimising cloud spending. Many organisations struggle with the complexity of legacy systems, and successfully adopting cloud technologies to transition to a modern IT landscape is challenging. Effective change management is therefore crucial during this transformation, as moving to the cloud involves cultural as well as technological changes. Engaging different teams early and often can help navigate these challenges more smoothly.

AI is reshaping industries, but many companies remain in pilot phases. What do you see as the biggest hurdles to scaling AI, and how can clients overcome these to unlock tangible business value?

The biggest hurdle to scaling AI isn’t the technology itself but rather the lack of a robust economic perspective, ensuring there’s a clear business case, measurable return on investment, and alignment with strategic goals. Too often, organisations initiate AI pilots without a solid plan for capturing economic value, leading to blocked or abandoned initiatives. The solution is to adopt a balanced approach: alongside foundational efficiency gains across all users and tactical use cases, organisations should also invest adequate time and resources into targeted, high-impact use cases that deliver tangible returns. Celebrating quick wins and sharing their economic benefits can build momentum across the organisation. As trust in AI’s value grows, start with scaling up by investing in broader upskilling programmes and embedding AI into core business processes. This balanced focus on both return on investment and workforce readiness will lead the way for sustainable AI adoption.

Generative AI is a game-changer for many sectors. Can you share how organisations can use GenAI successfully and what advice you would give to CIOs considering its adoption?

Successful adoption of GenAI starts with strong leadership buy-in, which sets the foundation for trust and commitment across the organisation. Their active involvement signals the importance of these efforts, ensuring alignment with strategic goals, clear targeted results, and empowered teams. It is essential for CIOs to establish strong AI governance to guide the ethical, transparent, and secure deployment of initial pilot initiatives. We advise organisations to demonstrate AI capabilities through specific and scoped use cases, showcasing tangible benefits while effectively managing risks.

Sustainability and ESG initiatives are increasingly important but often under-prioritised by CIOs. How do you see technology leaders stepping into a more strategic role here? How can organisations leverage technology to drive sustainability effectively?

There is no way around the fact that technology plays an essential role in the sustainability journey of organisations. The CIO's role is to strategically align technology investments with overarching sustainability goals, transforming ESG from a compliance obligation into a strategic advantage that drives long-term value and resilience. 

Given that sustainability reporting requirements will demand efforts at a very operational and often local level, it's crucial to establish a framework that engages local IT teams to collaborate with data owners from the business and other stakeholders, such as the financial reporting team, internal controls, and audit teams. The CIO should assess how the current technology landscape can be leveraged for ESG data collection and reporting, not only to meet reporting deadlines but also to ensure that data can be used for strategic monitoring and planning. As the complexities of ESG reporting continue to unfold, investing in technology for streamlined data collection and reporting will require time and change management. It's essential to start promptly, as the demand for transparency from investors, stakeholders, and customers will only increase.

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