AI, IT Leadership, and the New Business Mandate: From Cost Centre to Revenue Generator - By Gordon Brown
We recently had the pleasure of hosting a roundtable dinner with Telefónica Tech, joined by a group of forward-thinking IT leaders, CTOs, and Heads of IT from across the retail and manufacturing sectors. As expected, themes like AI, ERP, CRM, talent retention, and workplace culture dominated the discussion. But what stood out most wasn’t just the challenges — it was the sense that we’re on the cusp of a fundamental shift in how technology teams are perceived and what’s expected of them.
1. Weaponising AI: From Nervous Experimentation to Revenue Generation
One of the more provocative points raised came from a CTO who shared how their team had moved beyond cautious experimentation with AI and created an entirely new product — now delivering a significant stream of recurring revenue. It was a lightbulb moment for many in the room.
Historically, IT departments have been tasked with optimisation, automation, and cost-cutting. “How much will it cost?” has always been the first question. But what happens when AI gives us the ability to create — not just optimise? We’re now seeing a pivot: from technology as a cost centre to a potential profit centre.
This evolution begs some big questions:
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Should IT teams now carry revenue targets?
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Will boards start asking, “What can IT build for us?” instead of “What can IT save us?”
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Can AI compress product development timelines to a point where the board sees real-world results in months, not years?
The resounding sentiment was: now is the time to move. The companies that move quickest to embed AI into new customer experiences, internal tooling, and product offerings will not only pull ahead — they’ll redefine the playing field entirely.
2. The Rise of the CTO in the Boardroom
Another critical theme that surfaced: the role of IT leadership at the executive level. Too often, IT still reports into finance — a legacy of the days when IT was primarily about systems, budgets, and back-office infrastructure. But that structure increasingly feels outdated.
Technology is now a core driver of:
In short: technology is the business. So why are some CTOs still kept at arm’s length from strategic decision-making?
We discussed whether companies are missing a trick by not giving IT leaders a true seat at the table — not just to implement, but to shape strategy. Those that do are already reaping the rewards, enabling IT to move from reactive problem-solving to proactive growth-driving.
Final Thoughts
Two clear themes emerged from our roundtable: AI is a catalyst for reinvention, and technology leadership is more important than ever. The future of IT isn’t just about support or savings — it’s about steering the ship.
So if you're an IT leader: ask not just how can we cut costs — ask how can we create value? And if you're in the C-suite: ask whether your tech leaders have the voice and the mandate to drive the transformation that AI is making possible.
The future doesn’t belong to the cautious — it belongs to the bold.