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AI Services, Explained: 18 Questions CIOs Actually Ask

Artificial Intelligence

Last Updated: November 20, 2025

We get it… you don’t need another hype piece—you need straight answers.

This Q&A brings together the top questions CIOs ask us about AI services across industries and geographies. Each answer starts “short and sweet” so busy leaders can skim for the essentials, then dives into the practical details—what works now, what to watch, and where the risks live. If you’re assessing enterprise AI services, use this to align stakeholders, shortlist use cases, and move faster with confidence.

1. What business outcomes can AI/LLM services realistically deliver in 6–12 months?

Short answer: The fastest wins come from workflow rewiring and targeted use cases (support deflection, content ops, developer productivity). Organizations that redesign processes around AI report earlier EBIT impact than those who just “add a chatbot.”

  • Focus on a few measurable workstreams (ticket resolution, claims intake, KCS content, test automation).
  • Pair AI with change management (policy, training, incentives) and track the business outcomes of AI

Hexaware proof: GenAI for Enterprise IT improved agility and value realization for a life sciences tech leader via a top-down use-case program. Read the case study.

2. How do we prioritize use cases with the highest near-term ROI?

Short answer: Rank by business friction (volume × cost × latency), data readiness, and feasibility (policy, security, model fit). Pilot where outcomes can be verified in weeks.

  • Score each idea on value, risk, and dependency on scarce SMEs; document each AI use case

Hexaware proof: A fintech cut SME dependency during an IT transition using Hexaware’s GenAI platform, accelerating timelines. Read the case study.

3. Which enterprise functions see the strongest lift today?

Short answer: Customer operations, marketing/content ops, software engineering, and knowledge-heavy back-office functions lead current investment and returns with generative AI.

  • High-volume text tasks + clear ground truth = faster payback.

Hexaware proof: GenAI-powered product descriptions improved relevance and readability for a furniture retailer. Read the case study.

4. When should we use classical ML vs. generative AI (or combine them)?

Short answer: Use classical ML for prediction/forecasting on structured data; use GenAI for language, images, and code. Combine them for “predict → explain/generate” flows (e.g., predict churn, then generate outreach).

  • Start with ML where labeled data and KPIs are mature; layer GenAI to automate knowledge work around the prediction.

5. Build on open models, buy a platform, or use managed APIs—what’s the real TCO?

Short answer: APIs speed time-to-value; platforms add governance and integration; open models reduce per-token costs at scale but raise MLOps/security workload. Decide by data sensitivity, latency/SLA, and scale.

  • Consider exit plans, data residency, and compliance (ISO/IEC 42001, SOC 2).

Hexaware proof: SAP SuccessFactors migrations with Amaze® for ERP reduced risk and accelerated delivery for regulated clients. Read the case study.

6. What timeline should we expect for POC → pilot → scale?

Short answer: A focused POC can be 3–8 weeks; a controlled pilot 8–12 weeks; scale depends on integration, governance, and org change. Use stage gates tied to eval metrics.

  • Avoid “perpetual pilots” by pre-agreeing on success thresholds and production checklists; treat this as an AI implementation roadmap.

7. LLM vs. RAG vs. Vector DB: which approach fits our needs?

Short answer:

  • LLM gives quick, general answers; use for prototyping and non-sensitive tasks.
  • RAG grounds an LLM in your latest content with citations; use when facts change often.
  • Vector DB powers semantic retrieval for RAG; use when you need scalable, permission-aware search across sources.

Hexaware proof: Our Agentic AI for post-funding mortgage loan reviews—an LLM-orchestrated workflow where pairing the model with governed retrieval and a vector index is ideal—improved audit quality and responsiveness. Read the case study.

8. How do we select models, deploy (cloud vs. on-prem), and handle data residency?

Short answer: Choose models by task quality, cost, latency, safety, and deployment constraints (private networking, VPC). For data residency/compliance, align provider regions and controls to your regulatory scope.

  • Document data flows (PII, PHI), retention, and redaction.

Hexaware proof: Azure-based transformations show how cloud controls and automation reduce cost while increasing agility. Read the case study.

9. How do we protect sensitive data and prevent IP leakage with LLMs?

Short answer: Enforce least-privilege access, encryption, redaction, secure prompt patterns, and output validation. Bake in threat models from the OWASP LLM Top 10.

  • Use private endpoints, content filters, and evals for data exfiltration risks.

Hexaware proof: Tensai® AIOps emphasizes governed automation across Digital ITOps. Read the case study.

10. What contracts, controls, and audits should we require from AI vendors?

Short answer: Ask for DPAs, audit reports (e.g., SOC 2), ISO certifications (27001; 42001 for AI MS), security architecture, data-handling/retention, red-team results, and exit strategies.

  • Map obligations to NIST AI RMF and your internal control catalog.

11. What’s “minimum viable” responsible AI for launch?

Short answer: Policies + human-in-the-loop + evaluations tied to harm scenarios (toxicity, bias, privacy, hallucinations) aligned to NIST AI RMF and the GenAI Profile.

  • Maintain incident playbooks; log prompts/outputs with guardrails; make responsible AI a living program, not a checkbox.

12. Which regulations should we plan for early?

Short answer: Plan for sector/privacy rules now and EU AI Act timelines (key obligations begin 2025–2026). Coordinate compliance, legal, and security early.

  • Track model transparency, copyright, and post-market monitoring requirements.

13. How do we measure and reduce hallucinations—and prove accuracy?

Short answer: Define task-level evals (precision/recall, factuality, citation coverage), add retrieval confidence and guardrails, and run regression tests on each release. Use eval pipelines continuously.

  • Improve with better retrieval, re-ranking, and fine-tuning.

14. Which KPIs matter for executives?

Short answer: Tie to business outcomes: cost per resolution, cycle time, backlog burn-down, CSAT/NPS, developer velocity, and ultimately EBIT impact.

15. What skills and change-management drive adoption?

Short answer: Upskill in prompt design, RAG patterns, data governance, and AI safety. Adoption accelerates with playbooks, “golden paths,” and champions; treat AI as a workflow change, not a tool drop.

16. How do we set up a GenAI Center of Excellence and operating model?

Short answer: Create a cross-functional CoE (product, data, security, legal, risk, change) owning standards, evals, and reference architectures. Fund platform capabilities used by many teams.

17. What proof should we demand from vendors (beyond demos)?

Short answer: Scenario-based evals, red-team artifacts, latency/throughput SLAs, retrieval accuracy metrics, and runbooks for failure modes; plus references in your industry.

  • Ask to test on your data, not theirs.

18. Which questions separate credible vendors from hype?

Short answer: “Show data lineage and residency,” “Prove guardrails against prompt injection,” “What’s your fallback if retrieval fails?” “How do we exit without lock-in?”

19. What next? (Bonus Question)

If these answers helped you frame the conversation, the next step is to see how they translate into your context—your data, your controls, your KPIs. Our teams stand up focused pilots, build the right guardrails, and scale what proves value.

Ready to go deeper?

Visit Hexaware’s AI Services page to explore offerings, frameworks, and case studies (including GenAI consulting, RAG accelerators, and agentic operations).

About the Author

Nidhi Alexander

Nidhi Alexander

Chief Marketing Officer

Nidhi Alexander is the Chief Marketing Officer at Hexaware, responsible for developing and building the brand and driving growth across its suite of technology services and platforms. She is responsible for brand, content, digital marketing, social media, corporate initiatives, industry analyst relations, media relations, market research, field marketing, and demand generation across channels.

Nidhi has been anchoring market influencer relationships globally for Hexaware before taking over the marketing function. Within two years, she completely transformed Hexaware’s position across rankings from the industry analyst community. She has also helped build a strong sales channel via advisor-led deals for Hexaware.

A recognized and accomplished marketing professional known for breakthrough results, Nidhi brings in diverse experience across brand building, analyst and advisor relations, field marketing, academic relations, employer branding, journalism, and television production over the last two and half decades.

Before Hexaware, she was in leadership positions in firms like Infosys and Mindtree. She is a recipient of the Chairman’s award at Infosys, Mindtree, and Polaris. She started her career in journalism with Star Television (News Corp) and was associated with several award-winning news and current affairs programs like Focus Asia, National Geographic Today, Star Talk, and Prime Minister’s Speak.

Nidhi holds a degree in English Literature from Jesus and Mary College, Delhi University, and a Masters in English Journalism from the Indian Institute of Mass Communication, Delhi. She currently resides in Bridgewater, New Jersey, with her husband and two children.

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FAQs

Short answer: Treat scalability as a product discipline: test for throughput, reliability, cost curves, governance, and portability—not just model quality.
What to assess:

  • Workload scale: latency/throughput SLOs, autoscaling, batching/caching, request routing.
  • Data scale: ingestion pipelines, vector index growth, retention, lineage.
  • Cost scale: tokens per task, steady-state vs. spike costs, unit economics tied to business outcomes of AI.
  • Ops & governance: observability, eval pipelines, rollback/canary, access controls, responsible AI policy enforcement.
  • Portability: avoid lock-in with abstraction layers, multiple providers/models, exportable embeddings.
  • Roadmap fit: alignment with your AI implementation timeline and security/compliance needs.

Tip: Ask each AI Vendor for load-test evidence, multi-region HA design, and migration plans.

Short answer: Open source = control and cost efficiency at scale (with higher ops burden). Proprietary = faster time-to-value and support (with higher cost and potential lock-in).
Open source (pros/cons)

  • Pros: transparency, fine-grained control, on-prem options, favorable unit costs at volume.
  • Cons: you own hardening, patching, safety, and compliance; stronger MLOps required.

Proprietary (pros/cons)

  • Pros: higher baseline quality, frequent upgrades, SLAs, security attestations—great for enterprise AI services.
  • Cons: provider dependency, data residency constraints, premium pricing.

Pragmatic path

  • Hybrid: route tasks across models, use RAG, keep sensitive workloads on controlled stacks, document exit plans.
  • Evaluate with responsible AI criteria (safety, auditability) and TCO over 12–24 months.

Short answer: Build role-based learning paths, ship “golden paths” into daily work, and measure adoption and impact.
Playbook

  • Executive & PM tracks: value cases, risk trade-offs, KPI design—perfect for CIOs leading transformation.
  • Engineer & data tracks: prompt patterns, RAG, evals, secure coding, observability.
  • Risk & compliance tracks: governance, model cards, incident playbooks—core to responsible AI.
  • Field enablement: reusable prompts, templates, and a searchable AI Use Case
  • Change management: champions, nudges in tools, office hours; track time saved, accuracy, and win rates.
  • Measure learning → doing: adoption % by team, tasks automated, defects reduced—tight loop to business outcomes of AI.

Short answer: The biggest wins come where language- and knowledge-heavy work dominates. Generative AI excels in service, content, and engineering workflows.
High-impact areas

  • Customer operations: deflection, guided resolutions, QA; improved CSAT and cost per resolution.
  • Marketing & sales enablement: content generation, personalization, competitive briefs.
  • Software engineering: code assist, test generation, release notes; developer velocity up.
  • Finance & HR: invoice/claims extraction, policy Q&A, talent ops.
  • Supply chain & R&D: forecasting + summarization for faster decisions.

Tip: Start with documented processes and accessible ground truth; these yield faster payback and cleaner attribution of business outcomes of AI within your AI Services roadmap.

Short answer: Use sidecar patterns that keep core systems stable while Generative AI retrieves governed data and acts through safe interfaces.
Integration patterns

  • RAG over legacy data: connect to ECM/ERP/CRM, enforce permissions at retrieval time.
  • Tool/agent connectors: call approved APIs, ESB endpoints, or microservice wrappers—no direct DB writes.
  • Event-driven sidecars: queue-based orchestration for long-running jobs; idempotent retries.
  • Security & audit: PII redaction, policy checks, full prompt/output logging—key to responsible AI.
  • Operational fit: SSO, VPC/private endpoints, observability in your existing stack.

 Rollout plan: 1) inventory systems & data sensitivity; 2) pick one high-value AI Use Case; 3) pilot with guardrails; 4) harden and scale as part of your phased AI implementation.

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