61% of organizations are forced to evolve or rethink their data and analytics (D&A) due to the impact of disruptive artificial intelligence (AI) technologies, according to a new survey from Gartner, Inc.
“In response to the rapid evolution of D&A and AI technologies, CDAOs (chief data and analytics officers) are wasting no time in making changes to their operating model,” said Alan D. Duncan, vice analyst. -president at Gartner.
CDAOs do this to support data-driven innovation and accelerate organizational agility, with data governance at the core, according to a survey of 479 data and analytics leaders.
When asked about changes CDAOs need to make to their D&A operating model to align with their current and future goals, 38% of CDAOs said their D&A architecture will be overhauled in the next 12 to 18 months.
29% of respondents said they would reorganize how they manage data assets and adopt and enforce governance policies, practices and standards.
Expanded responsibilities
“While management of their organization’s D&A operating model grows year over year, no other role than that of the CDAO has responsibility for many of the key enablers of AI, which include data governance, “D&A ethics and mastery of data and AI,” Duncan said.
“The scope of responsibilities of the CDAO role has also expanded as budgetary and resource constraints become even more problematic. »
Among the main responsibilities of the CDAO are management of data and analytics strategy (74%) and governance (68%).
Be responsible of AI is also a priority on the CDAO agenda. The survey found that 49% of CDAOs said generative AI (GenAI) was among their top responsibilities. AI is concerned by 58% of CDAOs, an increase from 34% in 2023.
Negotiate financing
The expansion of responsibilities entails a significant cost for CDAOs. Among CDAOs reporting a year-over-year increase in funding for their functions, 46% still report budget constraints as a challenge.
“CDAOs that present better business cases to CFOs receive better and faster funding for their D&A initiatives. They also have greater buy-in from leadership,” Duncan said.
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CDAOs should explain to the CFO how any changes in D&A funding models align with the ratio of D&A value propositions as a utility, enabler, or driver of the organization.
“However, only 49% of CDAOs surveyed have established business outcome-focused metrics that enable stakeholders to track D&A value. Additionally, 34% have not established business outcome measures for D&A,” Duncan continued.
CDAOs must increase their power and influence to make things happen. They also need to understand the value levers and pain points of the organization end-to-end to present their value to the board.
“Otherwise, by 2026, 75% of CDAOs that fail to make organization-wide influence and measurable impact their top priority will be assimilated into technology functions,” Duncan concluded .
