How Northeast Grocery’s CIO transformed the role into an AI-powered strategic enabler

AI is reshaping the CIO role from technology service providers to strategic enablers who share future-readiness responsibilities across organizations. Northeast Grocery exemplifies this shift, where CIO Scott Kessler has implemented an AI strategy that distributes innovation capabilities throughout the business, transforming how the company approaches digital transformation and strategic planning.

The big picture: Northeast Grocery’s transformation strategy integrates AI across three dimensions—culture building, process transformation, and systems modernization—creating a comprehensive approach that empowers business leaders rather than centralizing technology decisions.

• The company has established a rotating, cross-functional Office of AI that democratizes technology decision-making and ensures AI benefits reach every level of the organization.
• Their strategy balances cutting-edge innovation with practical business outcomes, using technologies like robotics, generative AI, and intelligent store environments to drive tangible improvements.

Key initiatives: Northeast Grocery is deploying AI across multiple fronts to transform operations while building capabilities throughout the organization.

• They’ve piloted Simbe Robotics’ Tally robots to improve shelf availability, pricing accuracy, and supply chain operations.
• The company rolled out ChatGPT Enterprise to 250 business leaders who now use AI for customer sentiment analysis, HR policy recommendations, ad proofing, and inventory shrink analysis.
• Merchandising teams leverage generative AI to evaluate trends, optimize pricing, and improve promotional strategies.

The methodology: Northeast Grocery follows an “ECTERS” approach—educate, coach, train the trainer, empower, reinforce, and support—to build AI capabilities across the organization.

• This methodology breaks traditional workflow constraints by enabling “DIY IT” that puts technology capabilities directly in business leaders’ hands.
• The rotating leadership structure in their Office of AI ensures fresh perspectives while maintaining consistent governance for evaluating use cases and determining investments.

Why this matters: The CIO evolution from service provider to momentum creator represents a fundamental shift in how organizations approach technology leadership in the AI era.

• Rather than positioning IT as the sole owner of future technology readiness, this model distributes responsibility across the entire business ecosystem.
• The approach helps organizations navigate the pace of technological change by expanding the pool of leaders who can identify opportunities and implementation strategies.

The bottom line: In the AI era, successful CIOs are reframing their role around three core functions: educating the organization about data capabilities, driving innovation momentum, and facilitating shared responsibility for envisioning the future.