61% Organisations Evolving Data And Analytics Operating Model Due To AI Technologies: Survey
Sixty-one percent of organisations are forced to evolve or rethink their data and analytics operating model because of the impact of artificial intelligence technologies, according to a survey by Gartner. Chief data and analytics officers are doing it to support data-driven innovation and accelerate organisational agility, with data governance at the core, the survey found.
When asked about changes CDAOs need to make to their D&A operating model to be fit for current and future purpose, 38% of CDAOs said their D&A architecture will be overhauled over the next 12-18 months. Of the survey respondents, 29% said they will revamp how they manage data assets and adopt and apply governance policies, practices and standards.
The survey showed that CDAOs are expanding the scope of their responsibilities as budget and resource constraints rise. Among the CDAO’s key responsibilities are managing the D&A strategy (74%) and D&A governance (68%). Being accountable for AI is also high on the CDAO’s agenda. The survey found that 49% of CDAOs said generative AI is within their scope of primary responsibilities. AI is within scope for 58% of CDAOs, which is an increase from 34% in 2023.
“While the management of their organisation’s D&A operating model is increasing year over year, no other role than the CDAO has the responsibility of many of the key enablers of AI, which include data governance, D&A ethics, and data and AI literacy,” said Alan D Duncan, distinguished VP analyst at Gartner.
The expansion of responsibilities entails cost for CDAOs. Among CDAOs who report a year-over-year increase in their function’s funding, 46% report budget constraint as a challenge. According to Gartner, CDAOs who present better business cases to their CFOs receive better and quicker funding for their D&A initiatives.
CDAOs must explain to the CFO how any change in D&A funding models aligns to the ratio of D&A propositions as a utility, enabler or driver of the organisation. However, only 49% of surveyed CDAOs had established business outcome-driven metrics that allow stakeholders to track D&A , while 34% had not established business outcome metrics for D&A.
According to Gartner, CDAOs need to grow their influence to make things happen and understand the levers and pain points of the organisation to showcase their to the board.
“If not, by 2026, 75% of CDAOs who fail to make organisation-wide influence and measurable impact their top priority will be assimilated into technology functions,” said Duncan.
