Issue link: https://beckershealthcare.uberflip.com/i/1524413
27 CIO / HEALTH IT Why CIO pay is increasing By Giles Bruce Artificial intelligence is helping drive CIO pay packages to new highs, e Wall Street Journal reported July 8. CIO compensation is up 7.48% at large enterprises and 9% at midsize enterprises over the past year, according to data from consulting firm Janco Associates cited in the story, reflecting the desire for leaders with AI expertise. "ChatGPT caught a lot of incumbent technology companies by surprise, and no organization wants to be le behind," Shaun Hunt, CIO of construction company McKenney's, told the newspaper. "is increased demand and limited supply of technology leaders is driving up compensation for these critical roles." CIOs' median base pay increased to over $220,000 for large enterprises and neared $210,000 for midsize enterprises, with new CIO compensation packages ranging from $1.5 million to $1.8 million at those enterprises, according to the story. is jump in pay also comes in response to CIOs gaining more leadership responsibility, with 63% of the tech leaders now reporting directly to the CEO, according to data from management consultant Deloitte cited by the Journal. "It goes back to that evolution of the CIO reporting to the CEO," Blue Shield of California CIO Lisa Davis told the news outlet. "Now the compensation has to come with it." n AI moves CIOs closer to the CEO By Giles Bruce A rtificial intelligence is forging closer relationships between CIOs and CEOs and giving IT executives more business leadership responsibilities, The Wall Street Journal reported. Sixty-three percent of technology leaders in the U.S. now report directly to the CEO, up from 52% in 2023 and 41% in 2015, according to Deloitte data cited in the June 12 story. This comes as health systems and other businesses have been exploring generative AI since the launch of ChatGPT in 2022. "Interest in generative AI at the commercial leadership level has never been higher around technology," Lou DiLorenzo Jr., principal and national U.S. CIO program leader at Deloitte, told the Journal. "Being at the table allows the tech executive or CIO to basically shape that narrative." Meanwhile, fewer CIOs are reporting to the CFO (from 26% in 2015 to 12% in 2023, per Deloitte), reflecting a shift in the perception of IT from a cost center to a profit driver, according to the story. For instance, Blue Shield of California CIO Lisa Davis started reporting to her CEO in 2022 so she could participate in conversations about the role of technology such as generative AI in revamping the company, the Journal reported. "That would have never happened if IT was sitting in a back office," Ms. Davis told the newspaper. n The top priorities of CIOs, per Deloitte By Giles Bruce Keeping ahead of emerging technologies is the top priority of CIOs, according to a June 4 Deloitte report. Here are the four biggest priorities of IT executives this year, according to the professional services firm's February survey of 211 CIOs and technology leaders: 1. Emerging technology: Staying ahead of emerging tech and solutions (i.e. artificial intelligence/generative AI, quantum computing, augmented/virtual reality, etc.). 2. Data and AI: Harnessing the full potential of data, analytics, AI and machine learning. 3. Cybersecurity: Alleviating cyber risks and preventing cyberattacks. 4. Advocating tech strategy: Organizing, managing and rationalizing the tech strategy inside the organization. n