New research: The changing role of IT leadership in organisations

AI is changing everything, including IT leaders' to-do lists. Nearly every team across the modern enterprise—from HR to public relations to customer service to engineering—is using AI to get work done, according to recent ServiceNow research on the changing role of IT leadership in the AI era, which included 200 respondents in Europe.

As a result, IT leaders have been propelled to centre stage. Chief information officers, chief technology officers and other tech leaders are now responsible for a vast range of tasks, some of which are far outside the traditional purview of IT. While some executives are seizing the moment to become "chief everything officers", others are scrambling to figure out how to prioritise and delegate.

Changing IT leadership demands

In the past, CxOs evaluated IT leaders based on whether they could run a well-functioning IT team. Today's CxOs are grading their peers on whether they can boost revenue and create financial value for the business.

Perhaps unsurprisingly, AI is an important part of that story. CxOs understand that instead of making ad hoc investments in AI-forward tools, they must apply the technology strategically to maximise their return on investment.

For that, they need the technical expertise of their peers in IT. In fact, more than 60% of the IT leaders we surveyed said they're actively partnering with the C-suite to define business strategy and manage change.

IT as profit centre

Across the board, IT leaders are getting more involved in business strategy. About two-thirds of the leaders we surveyed said they're more focused on cost management and profitability now than they were before, and about half are focused on increasing the company's market value.

Does this new focus translate into results? For Pacesetters—those leading the IT function and driving strategic change across the enterprise—the answer is yes.

That's because they're more collaborative than their peers, according to our research. Compared to other organisations in our survey, Pacesetters are far more likely to collaborate with CxOs, especially the CEO and chief human resources officer.

At large organisations, leaders are transforming IT into a hybrid cost centre/revenue generator. This hybrid model helps enable companies to streamline their operations and dole out IT resources more efficiently.

New IT skills

AI is causing a host of cultural changes that are sowing uncertainty among workers. Pacesetters understand they're uniquely positioned to lead in this moment. They know AI better than anyone, so they can inspire their employees, communicate about the future and champion the power of innovation.

To that end, Pacesetters are beefing up their soft skills, including communication, problem-solving and leadership. In fact, nearly 70% of this cohort are embracing collaborative and interpersonal skills, versus 34% of others.

As part of this cultural shift, Pacesetters are taking a leading role in hiring and upskilling. About 45% of them are collaborating with HR to develop AI-focused training programmes, compared to less than a third of others in our survey.

A human-centric future

As companies increasingly rely on tools such as AI, soft skills will become more, not less, important. The IT leaders positioned to weather the storm and become "chief everything officers" are those who embrace the innately human qualities that make us who we are.

Gain more insights in our complimentary Innovation roadmap for IT leaders.