Disruptive artificial intelligence (AI) technologies are forcing 61% of organizations to evolve or rethink their data and analytics (D&A) operating model, according to Gartner’s annual Chief Data & Analytics Officer (CDAO) survey. The survey, conducted from September to November 2023, brings together information from 479 data and analytics leaders around the world.
Importantly, the survey reveals that CDAOs’ core responsibilities are expanding due to the rapid evolution of D&A and AI technologies. Alan D. Duncan, Distinguished Analyst Vice President at Gartner, said: “In response to the rapid evolution of D&A and AI technologies, CDAOs are wasting no time in making changes to their operating model. » These changes are primarily driven by the need to “support data-driven innovation and accelerate organizational agility, with data governance at the heart”.
The survey found that 38% of CDAOs revealed that their D&A architecture would be overhauled in the next 12 to 18 months. 29% of respondents said they plan to reorganize how they manage their data assets, adopting and enforcing governance policies, practices and standards to ensure their D&A operating model is fit for purpose current and future.
Growth in responsibilities within the CDAO role was also noted. According to the survey, 74% are responsible for D&A strategy and 68% for D&A governance. 49% of CDAOs said generative AI was among their top responsibilities, a significant increase from 34% in 2023. Duncan said: “No role other than the CDAO is responsible for many of the top AI enablers, which include data governance. , D&A ethics and mastering data and AI.
However, expanding responsibilities comes with challenges, including budgetary constraints, as reported by 46% of CDAOs who saw an annual increase in funding for their function. Duncan suggests that CDAOs could obtain faster and more generous funding for their D&A initiatives if they presented better business cases to CFOs, as this would increase executive buy-in.
CDAOs must effectively communicate how changes in D&A funding models align with the organization’s D&A value propositions. However, Duncan points out that “only 49% of surveyed CDAOs have established business outcome-focused metrics that enable stakeholders to track D&A value.” Similarly, 34% have not established business outcome measures for D&A.
CDAOs need greater influence to achieve organizational goals. Without this increase in power, “by 2026, 75% of CDAOs that fail to make organization-wide influence and measurable impact their top priority will be assimilated into technology functions” , warned Duncan.
Gartner’s CDAO survey highlights the significant impact of disruptive AI technologies on organizations’ data and analytics operating models. As CDAOs navigate a changing landscape, they face the dual challenges of expanding their responsibilities and securing adequate funding for D&A initiatives. Effective communication, alignment with business outcomes, and prioritization of organizational influence are critical to success in this rapidly evolving field. CDAOs must seize the opportunity to shape the future of data-driven innovation and organizational agility in the age of AI disruption.
