business leader overlooking an industrial facility, representing the COO’s role in guiding AI-driven operations, improving efficiency and building resilient enterprises

Brain Circuits

Three key actions for COOs in the AI era  

Published October 29, 2026 in Brain Circuits • 2 min read

AI is reshaping the COO role from operational executor to architect of predictive, intelligent, and resilient enterprise systems. Here are the three essential actions for COOs leading the charge.

  1. Target a high-value operational problem

    Do not pursue AI for its own sake. Identify a critical, persistent challenge – supply chain volatility, quality issues, service bottlenecks – and focus initial AI efforts there. Ensure the technology can scale from proof-of-concept without prohibitive cost.

  2. Build a cross-functional operations “nerve center”

    Create a dedicated team combining operations experts, data scientists, and IT professionals. This hub should identify AI opportunities, manage implementation, and align technical capabilities with business strategy.

  3. Champion a “human-in-the-loop” philosophy

    Design AI systems to augment and empower the human workforce. Seek frontline input and delegate repetitive, data-intensive tasks to AI, freeing people for complex problem-solving, creativity, and strategic thinking.

Risk checklist

These developments carry important risks that you need to anticipate, mitigate, and govern. Go through these questions to ensure you are managing the risks as you design your systems.

  • Are we still reliant on “black-box” models?

Insist on model transparency and establish validation frameworks for AI-driven decisions.

  • How do we ensure data integrity?

Corrupted datasets can lead to catastrophic flaws in supply chain or production outputs.

  • Are we managing the disruption to our workforce?

Leading with empathy and a clear reskilling strategy is essential to maintain morale and trust.

  • What are the hidden costs?

Scaling can lead to unexpectedly high recurring costs (particularly with GenAI.) A rigorous cost-benefit analysis is indispensable.

Key takeaway

The COO who combines deep operational expertise with strategic AI understanding and human-centered leadership will drive the next wave of productivity, resilience, and competitive advantage.

Authors

Carlos Cordon

Carlos Cordon

Professor of Strategy and Supply Chain Management

Carlos Cordon is a Professor of Strategy and Supply Chain Management. Professor Cordon’s areas of interest are digital value chains, supply and demand chain management, digital lean, and process management. At IMD, he is Director of the Strategies for Supply Chain Digitalization program.

Konstantinos Trantopoulos

Konstantinos Trantopoulos

Advisor and Research Fellow at IMD

Konstantinos Trantopoulos is a Senior Advisor and Fellow at IMD. He works with C-level executives, boards, and private equity investors on the strategic, commercial, and operational levers that drive growth and enterprise value. His work focuses on investments, capital allocation, commercial diligence, market dynamics, and how new technologies and AI reshape value creation. His insights have been featured in Harvard Business Review, MIT Sloan Management Review, California Management Review, MIS Quarterly, Industry and Innovation, Το Βήμα, and Forbes.

Michael Wade - IMD Professor

Michael R. Wade

Professor of Strategy and Digital

Michael R Wade is Professor of Strategy and Digital at IMD and Director of the Global Center for Digital and AI Transformation. He directs a number of open programs such as Leading Digital and AI Transformation, Digital Transformation for Boards, Leading Digital Execution, Digital Transformation Sprint, Digital Transformation in Practice, Business Creativity and Innovation Sprint. He has written 10 books, hundreds of articles, and hosted popular management podcasts including Mike & Amit Talk Tech. In 2021, he was inducted into the Swiss Digital Shapers Hall of Fame.

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