Unisys CEO Peter Altabef on Enterprise AI Strategy and the Crucial Role of CIOs

In an era where artificial intelligence (AI) is rapidly reshaping the business landscape, Peter Altabef, Chair and CEO of Unisys, sheds light on how his company is navigating this transformative wave....
Unisys CEO Peter Altabef on Enterprise AI Strategy and the Crucial Role of CIOs
Written by Rich Ord

In an era where artificial intelligence (AI) is rapidly reshaping the business landscape, Peter Altabef, Chair and CEO of Unisys, sheds light on how his company is navigating this transformative wave. During a recent conversation with industry analyst Michael Krigsman on the CXOTalk podcast, Altabef discussed the pivotal role AI plays in Unisys’s strategy, the essential leadership of Chief Information Officers (CIOs) in this journey, and the disciplined approach necessary for AI investments to yield tangible business outcomes.

AI: The Catalyst for Innovation

AI has become more than just a tool for optimizing business processes; it is a force driving profound changes across industries. According to Peter Altabef, the potential of AI, particularly generative AI, goes beyond traditional boundaries, enabling companies to explore new business models and customer engagement strategies. “AI has moved from being a tool of efficiency to becoming an engine of innovation,” Altabef explained, emphasizing that the technology is reshaping the way organizations think about growth and competitive advantage.

At Unisys, this shift is evident in how AI is integrated into client solutions and internal operations. Altabef noted that the impact of generative AI, which has only been around for a few years, has been nothing short of transformative. “Generative AI has dramatically changed the game,” he said, pointing out that the technology allows businesses to imagine and create new possibilities that were previously out of reach. This leap in capability is driving companies to rethink their strategies, not just in terms of improving existing processes but in completely reimagining how they serve their customers and operate in the market.

Beyond Incremental Improvements

The CEO also highlighted the importance of moving beyond incremental improvements, urging companies to embrace AI’s potential to drive game-changing innovations. “This is about more than just doing the same things faster or cheaper,” Altabef remarked. “It’s about creating entirely new ways of doing business that can open up new revenue streams and expand market share.” This mindset shift from efficiency to innovation is what sets forward-thinking companies apart in today’s rapidly evolving technological landscape.

Altabef stressed that for AI to truly be a catalyst for innovation, it must be integrated into the core business strategy rather than treated as a separate or ancillary initiative. “AI needs to be part of the DNA of the organization,” he said. “It has to be woven into the fabric of how decisions are made, how products are developed, and how customers are engaged.” By embedding AI into the strategic framework, companies can ensure that they are not only keeping pace with technological advancements but also leveraging them to drive meaningful, long-term growth.

Fostering a Culture of Innovation

This approach, however, requires a commitment to continuous learning and experimentation. Altabef emphasized that organizations must foster a culture that encourages innovation at every level, from the boardroom to the front lines. “Innovation doesn’t happen in a vacuum,” he said. “It requires a culture that supports risk-taking, that values new ideas, and that is constantly looking for ways to improve and evolve.” For Unisys, this means empowering employees with the tools and training they need to harness the power of AI and apply it creatively to solve complex business challenges.

Ultimately, Altabef believes that AI’s true value lies in its ability to drive not just efficiency, but transformation. “The real promise of AI is not just in doing things better, but in doing things differently,” he concluded. This vision of AI as a transformative force is what will propel companies into the future, enabling them to not only survive in a competitive market but to thrive by continuously innovating and adapting.

The CIO’s Role in AI Transformation

As AI becomes increasingly central to business strategy, the role of the CIO has transformed from managing IT infrastructure to becoming a key driver of innovation and strategic growth. Peter Altabef emphasized that today’s CIOs are uniquely positioned to lead AI initiatives across the enterprise, bridging the gap between technology and business objectives. “This is not just about keeping the lights on anymore,” Altabef said. “CIOs are now at the forefront of transforming their organizations by leveraging AI to unlock new opportunities and drive competitive advantage.”

One of the critical responsibilities of a CIO in this new landscape is to ensure that AI initiatives align with the overall business strategy. Altabef noted that this requires a deep understanding of both the technology and the business, as well as the ability to communicate effectively with other C-suite executives. “A successful CIO must be able to translate technical capabilities into business value,” he explained. “It’s about speaking the language of the CEO, the CFO, and the CMO, and showing them how AI can drive revenue, improve customer experiences, and open up new markets.”

Strategic Communication and Collaboration

Effective communication is not just about conveying technical details; it also involves fostering collaboration across departments to ensure that AI initiatives are implemented successfully. Altabef highlighted the importance of CIOs working closely with other executives to break down silos and encourage a more integrated approach to AI. “Cross-functional collaboration is essential,” he said. “CIOs need to work hand-in-hand with other leaders to ensure that AI is not just a technology initiative, but a strategic initiative that impacts every part of the business.”

Altabef also stressed the importance of involving the entire C-suite in AI discussions, as the technology increasingly influences not only operational efficiency but also strategic direction. “CIOs are no longer working in isolation,” he pointed out. “The decisions they make regarding AI can have far-reaching implications for the company’s future, which is why it’s crucial to have input from all senior leaders.” This collaborative approach helps to ensure that AI projects are aligned with broader business goals and that the full potential of the technology is realized.

Balancing Innovation with Risk Management

While driving innovation is a key part of the CIO’s role, managing the risks associated with AI adoption is equally important. Altabef underscored the need for CIOs to take a balanced approach that encourages experimentation while also maintaining a focus on security, privacy, and ethical considerations. “AI presents tremendous opportunities, but it also comes with significant risks,” he said. “CIOs must navigate these challenges carefully, ensuring that their AI initiatives are not only innovative but also responsible.”

This responsibility extends to ensuring that AI systems are transparent and accountable, particularly as they become more integrated into critical business processes. “The role of the CIO includes setting the standards for how AI is developed and used within the organization,” Altabef explained. “This means putting in place the right governance frameworks to oversee AI projects, from data management to algorithmic fairness.” By establishing these safeguards, CIOs can help build trust in AI systems and ensure that their deployment enhances the organization’s reputation rather than jeopardizing it.

Empowering the Organization Through AI

Finally, Altabef emphasized that CIOs must also play a key role in empowering their organizations to embrace AI. This involves not only implementing the technology but also fostering a culture of innovation and continuous learning. “CIOs are the catalysts for change within their organizations,” he said. “They need to provide the tools, training, and support that teams need to harness AI effectively and to apply it in ways that drive real business value.”

For Altabef, the ultimate goal is for AI to become a seamless part of the organization’s operations and strategy, guided by the vision and leadership of the CIO. “The best CIOs are those who can integrate AI into the very fabric of their company,” he concluded. “They understand that AI is not just a tool, but a transformative force that, when managed effectively, can lead to unprecedented growth and success.”

Disciplined Investment in AI

In an age where AI is often heralded as the next frontier of business transformation, Peter Altabef, Chair and CEO of Unisys, advocates for a disciplined approach to AI investment. For Altabef, the allure of AI should not overshadow the necessity of aligning investments with strategic business objectives. “It’s easy to get caught up in the hype,” Altabef noted. “But to realize true value from AI, you need a clear investment strategy that prioritizes projects with a solid business case and measurable ROI.”

At Unisys, this disciplined approach is reflected in the careful evaluation of AI initiatives before they are greenlit. Altabef emphasized that AI projects must not only be innovative but also strategically aligned with the company’s goals. “We don’t chase trends for the sake of it,” he explained. “Every AI project must demonstrate its potential to contribute to our broader business objectives. Whether it’s improving operational efficiency, enhancing customer experiences, or opening new revenue streams, the focus is always on tangible outcomes.”

Prioritizing ROI and Strategic Alignment

One of the key aspects of Unisys’s AI strategy is the rigorous assessment of ROI. Altabef described how AI projects are vetted based on their potential to deliver returns, not just in terms of financial gain but also in their strategic impact. “We ask ourselves, ‘What is the real value of this project?’ If a project doesn’t align with our strategic priorities or fails to demonstrate a clear ROI, it doesn’t move forward,” he said. This approach ensures that resources are allocated efficiently, avoiding the common pitfall of investing in AI projects that may be impressive in concept but lack practical business value.

Altabef also highlighted the importance of regular reporting and accountability in maintaining this disciplined investment approach. “We expect our teams to provide regular updates on AI projects, including progress towards ROI targets,” he explained. “This not only keeps everyone focused on the end goals but also allows us to make informed decisions about whether to continue, scale, or pivot a project.” By maintaining a clear line of sight on project outcomes, Unisys ensures that its AI investments contribute meaningfully to the company’s success.

Expanding the AI Portfolio with Care

While maintaining discipline, Unisys has still significantly expanded its AI project portfolio, growing from 51 projects in early 2022 to 135 by mid-2023. Altabef attributes this growth to the company’s methodical approach to identifying and scaling AI opportunities. “We’re seeing real traction across the company because we’ve been careful about where and how we invest in AI,” he said. The company categorizes AI initiatives into proofs of concept, pilots, and production, ensuring a balanced and scalable approach to implementation. “It’s about building a strong foundation first, then scaling those projects that have proven their worth,” Altabef explained.

This careful expansion is driven by a commitment to maximizing the impact of AI across all business functions. Altabef noted that Unisys doesn’t just deploy AI for the sake of innovation; it does so with the intention of driving meaningful change. “We’re not interested in AI projects that are just cool or cutting-edge; we’re interested in those that can fundamentally improve our business and that of our clients,” he said. This focus on value creation ensures that Unisys’s AI investments are not only sustainable but also transformative in the long run.

Balancing Innovation with Investment Discipline

Even as Unisys expands its AI portfolio, Altabef remains adamant that each project must meet the company’s rigorous standards for investment. This balance between innovation and discipline is critical to avoiding the pitfalls of chasing every new trend that emerges. “It’s about being strategic rather than reactive,” Altabef emphasized. “We’re constantly evaluating the landscape, but we’re also very deliberate in how we proceed. This ensures that our AI initiatives are not just experiments but are grounded in our broader business strategy.”

For Altabef, this disciplined approach is what will allow Unisys to harness the full potential of AI while ensuring that resources are used wisely. “The key to successful AI adoption is not just in how much you invest, but in how wisely you invest,” he concluded. “By staying focused on strategic alignment and ROI, we’re able to make AI a true driver of innovation and growth, rather than just another cost center.” This philosophy of disciplined investment is what will continue to guide Unisys as it navigates the complexities of the AI landscape and positions itself for future success.

Leadership and Cultural Transformation

As AI continues to reshape the business landscape, Peter Altabef, Chair and CEO of Unisys, emphasizes that the successful adoption of AI is not solely dependent on technology but also on leadership and cultural transformation. For Altabef, cultivating a culture that embraces change and continuous learning is critical to navigating the complexities of AI-driven transformation. “AI isn’t just a technological shift; it’s a cultural one,” he remarked. “Leaders must be prepared to guide their organizations through this change, fostering an environment where innovation can thrive.”

At the heart of this cultural transformation is a commitment to servant leadership, a model that Altabef champions as essential in times of significant technological change. “Servant leadership is about putting the needs of your team first, helping them succeed, and removing obstacles in their path,” he explained. In the context of AI adoption, this approach involves empowering employees at all levels to embrace new technologies and take ownership of their roles in the AI journey. “Our goal is to create a culture where everyone feels engaged and supported as they adapt to new ways of working,” Altabef said.

Fostering a “Let Me Help” Culture

One of the key strategies Unisys has implemented to foster this culture is the promotion of a “let me help” mindset, where collaboration and mutual support are central to the organization’s values. Altabef highlighted how this cultural ethos has been instrumental in enabling Unisys to navigate the challenges of AI-driven change. “We’ve made it clear that no one is going through this transformation alone,” he said. “Whether it’s through training, mentoring, or just being there for each other, we are committed to helping our employees succeed in this new landscape.”

This approach to leadership and cultural transformation is particularly important in addressing the fear and uncertainty that often accompany major technological shifts. Altabef noted that by prioritizing open communication and transparency, leaders can build trust and resilience within their teams. “People are naturally apprehensive about change, especially when it comes to something as significant as AI,” he acknowledged. “By being transparent about our goals and the steps we’re taking, and by showing a genuine commitment to their well-being, we can help alleviate those fears and get everyone moving in the same direction.”

Empowering the Workforce Through Education and Training

Education and training are also central to Unisys’s strategy for cultural transformation. Recognizing that the successful implementation of AI requires new skills and knowledge, the company has invested heavily in upskilling its workforce. “We believe in continuous learning, and we’ve made it a priority to provide our employees with the tools and training they need to thrive in an AI-enabled world,” Altabef said. This commitment to education not only equips employees with the technical skills necessary for AI but also empowers them to innovate and contribute to the company’s success.

Altabef emphasized that this focus on training goes beyond just technical education; it also includes fostering a mindset of curiosity and creativity. “We encourage our employees to think about the art of the possible,” he explained. “It’s not just about learning how to use AI, but about imagining new ways to apply it that can drive real business value.” By cultivating this culture of innovation, Unisys is positioning itself to not only adapt to AI but to lead in its implementation.

Leading by Example in Times of Change

Altabef also underscored the importance of leading by example during periods of significant change. As Unisys has navigated its AI journey, Altabef has made a point of personally engaging with employees, demonstrating his commitment to the company’s cultural transformation. “Leadership isn’t just about setting the vision; it’s about being actively involved in the process,” he said. This hands-on approach has helped to reinforce the company’s commitment to its employees and has played a crucial role in maintaining morale and cohesion during the transition.

Ultimately, Altabef believes that leadership and culture are the foundations upon which successful AI adoption is built. “Technology alone won’t drive transformation,” he concluded. “It’s the people, the leadership, and the culture that determine whether a company will succeed in leveraging AI to its full potential. At Unisys, we’re committed to leading with empathy, fostering a culture of continuous learning, and empowering our employees to be at the forefront of this change.” This focus on leadership and cultural transformation ensures that Unisys is not just keeping up with technological advancements but is actively shaping the future of AI in the enterprise.

Looking Ahead: Quantum Computing and Beyond

As Unisys continues to harness the transformative power of AI, Peter Altabef, Chair and CEO, is already looking to the next horizon—quantum computing. For Altabef, quantum computing represents a significant leap forward, one that could further amplify the capabilities of AI and redefine the technological landscape. “Quantum computing isn’t just another step forward; it’s a potential game-changer that could unlock new levels of performance and problem-solving capabilities,” Altabef remarked. While quantum computing is still in its early stages, Altabef emphasized that now is the time for companies to start preparing for its eventual impact.

Unisys is already exploring the potential of quantum computing in specific areas, such as optimization and cryptography. Altabef highlighted the company’s work with quantum annealing, a specialized form of quantum computing that is well-suited for solving complex optimization problems. “We’re not waiting for general-purpose quantum computers to become viable; we’re leveraging quantum annealing today to tackle some of the most challenging optimization issues in logistics and other sectors,” he explained. This proactive approach ensures that Unisys is not only ready for the future but is actively shaping it.

Preparing for the Quantum Revolution

In addition to optimization, Unisys is also focused on post-quantum cryptography, a crucial area given the potential for quantum computing to disrupt current encryption methods. Altabef pointed out that as quantum technology advances, the need for robust security measures will become increasingly urgent. “The threat posed by quantum computing to traditional encryption is real, and we’re taking steps now to protect our clients’ data against future threats,” he said. By staying ahead of these developments, Unisys is positioning itself as a leader in the next wave of technological innovation.

Looking beyond quantum computing, Altabef sees a broader technological evolution that will continue to reshape industries. He believes that the combination of AI and emerging technologies like quantum computing will open up new possibilities for innovation and growth. “We’re entering an era where AI and quantum computing will intersect, creating opportunities that we can’t even fully imagine yet,” he noted. For Unisys, this means not only staying at the cutting edge of technology but also ensuring that these advancements are integrated into the company’s strategic vision.

The Future of Enterprise Technology

As Unisys looks to the future, Altabef is clear that the company’s success will depend on its ability to adapt and innovate continuously. This forward-thinking approach is central to Unisys’s strategy, ensuring that the company is not just responding to changes in the technological landscape but actively driving them. “The key to staying competitive in the coming years will be our ability to embrace new technologies like quantum computing while continuing to push the boundaries of what’s possible with AI,” Altabef stated.

Ultimately, Altabef believes that the combination of AI, quantum computing, and a strong leadership culture will enable Unisys to thrive in an increasingly complex and competitive market. “We’re not just investing in technology; we’re investing in the future of our company and our clients,” he concluded. By maintaining a disciplined approach to innovation, fostering a culture of continuous learning, and staying ahead of emerging trends, Unisys is positioning itself to lead in the next chapter of enterprise technology.

As the company prepares for the future, Altabef’s vision is clear: to leverage the full potential of AI and quantum computing to drive meaningful change. “The real promise of these technologies lies in their ability to transform businesses and create new opportunities,” he said. With a focus on strategic investment, leadership, and innovation, Unisys is well on its way to realizing that promise and shaping the future of enterprise technology.

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