The Modern-Day COO in the World of AI: Navigating Transformation and Driving Operational Excellence

INNOVATION

The Modern-Day COO in the World of AI: From Operator to Transformer

Published on March 07, 2025 - 3 min read

The COO role is being reshaped by AI, automation, and a wave of emerging technologies that are redefining how businesses operate at every level. What was once a mandate focused on process, efficiency, and execution is now expanding to include transformation, innovation, and enterprise-wide agility.

Historically, the COO kept the engine running—optimising systems, scaling operations, and ensuring delivery. That foundation still matters. But today’s COO must also lead the charge on embedding AI, rethinking operating models, and building the infrastructure for a faster, smarter, more adaptive business.

That starts with their own evolution. COOs can’t delegate AI—they have to understand it. From predictive analytics to intelligent automation, today’s operational leaders must develop enough fluency to evaluate tools, shape AI strategy, and lead cross-functional teams through complex implementation. In many organisations, the COO is becoming the internal catalyst—not just scaling the business, but helping the entire team upskill around what AI makes possible.

Why AI Demands a New Kind of COO

AI is more than a new technology layer—it’s reshaping how companies create value, serve customers, and scale operations. PwC estimates it could add $15.7 trillion to the global economy by 2030. McKinsey reports early adopters are already seeing 3–15% revenue gains and ROI improvements of up to 20%.

The upside is real—but only if COOs can close the gap between interest and execution.

Take a telecom giant featured by Accenture. By using AI to route calls based on behavioural data, it cut 1.5 million inbound calls annually and increased digital engagement by 26%. That kind of transformation doesn’t happen through exploration alone—it takes intentional scaling, and leadership from the top.

And yet most companies are still stuck at the starting line. A McKinsey survey found that 95% of distributors are exploring AI use cases—but fewer than 10% have a clear roadmap, and only 30% have the talent needed to scale. The message is clear: curiosity isn’t enough. COOs must push beyond pilots and prototypes, embedding AI into how the business truly operates.

Redefining Productivity in an AI World

AI is transforming how productivity is defined—and how it’s delivered.

Where traditional ops focused on doing more with less, AI-enabled operations prioritise speed, precision, and foresight. With tools like predictive analytics and intelligent automation, today’s COOs can shift from reactive firefighting to proactive, data-led execution.

IBM offers a clear example. During the peak of the COVID-19 pandemic, it achieved a 100% order fulfilment rate while saving $160 million—powered by an AI-driven supply chain using cognitive control towers, intelligent advisors, and risk-resilience tools. That outcome was no accident. It reflected a system built for volatility, with AI embedded across key functions.

With the right structure in place, COOs gain real-time visibility, centralised control, and the ability to act with speed and confidence. This redefines what operational excellence looks like—and what it demands.

Talent Acquisition and Development: What Modern COOs Must Lead

Modern COOs must lead the creation of the workforce foundations that make AI adoption real. Understanding who to hire, which problems they will solve, and how AI will embed into operational workflows is now a core leadership responsibility.

Industry trends show how quickly the landscape is shifting. Over the past eight years, hiring of AI technical talent on LinkedIn has increased by 323%, and the number of companies with a Head of AI role has tripled globally. Today, AI Engineer is the most common AI-specific job title, making up 43% of AI hires, followed by AI Researchers, Scientists, Specialists, and Developers.

For COOs, hiring decisions must be made with precision. Building AI capability isn’t about adding technical talent for appearance; it’s about targeting specific roles that create operational leverage, drive automation, and support smarter decision-making across the business.

Recruitment alone will not deliver success. Only 45% of COOs believe their organisations have the cultural foundation needed to scale AI effectively, according to Accenture. Without clear ownership, agility, and trust built into the operating model, even world-class hires will struggle to deliver impact.

Alongside targeted hiring, COOs must champion workforce development. While 63% of employees view AI positively, 48% say better training is essential to adoption. Upskilling must go beyond technical fluency. Data literacy, machine learning fundamentals, adaptability, critical thinking, and cross-functional collaboration all need to become core capabilities within an AI-enabled business.

Building an AI-capable organisation is a leadership challenge—and it is the COO who must drive it.

Five Recommendations for the Modern COO

1. Own the Talent Blueprint

Map AI capabilities to business priorities, hire with precision, and build internal fluency through targeted upskilling. Talent is not a support function—it’s a competitive lever.

2. Make Data Your Operating System

AI performance depends on structured, accessible, high-quality data. Build systems where data isn’t siloed, and every function operates from a shared source of truth.

3. Reshape Functions, Not Just Tools

Embed predictive AI into core processes—from forecasting to workforce planning—to unlock step-changes in speed, efficiency, and visibility.

4. Lead Change as a System, Not an Event

Treat AI deployment as organisation-wide transformation. Invest in change management to ensure adoption, reduce resistance, and align incentives across functions.

5. Model a New Kind of Leadership

Fluency in technology must be matched by emotional intelligence. The future COO leads across both systems and culture, driving transformation without losing human trust.

Conclusion: Charting a New Path for Operations

The modern COO stands at the forefront of an AI-driven operational revolution. By embedding AI into strategy, redefining productivity, and cultivating an adaptive workforce, they are uniquely positioned to drive innovation and resilience. The path forward demands balancing technological leadership with human insight—aligning AI initiatives to organisational values, employee engagement, and long-term growth. The COOs who master this shift won’t simply improve operations; they will redefine what operational excellence means in the age of AI.