More Companies are Changing D&A Strategies to Adapt to AI

April 29, 2024 thehrobserver-hrobserver-hrstrategies-data-dataanalytics

Around 61% of organisations feel compelled to reassess their data and analytics (D&A) operating strategies due to the influence of disruptive artificial intelligence (AI) technologies, a recent study by Gartner reveals.

The findings are part of the annual Gartner Chief Data & Analytics Officer (CDAO) survey, which has run from September to November 2023, with 479 chief data and analytics officers, chief data officers (CDO), and chief analytics officers (CAO) globally contributing to it.

According to the survey, 38% of CDAOs anticipate overhauling their D&A architecture within the next 12-18 months. Additionally, 29% of those surveyed plan to renovate their approach to data asset management and embrace governance policies, practices, and standards.

The primary responsibilities of the CDAOs include overseeing the D&A strategy and governance. Additionally, they prioritise accountability for AI, with 49% stating that generative AI (GenAI) falls under their primary responsibilities. 

The survey indicates an increase, from 34% in 2023 to 58% of CDAOs now including AI within their scope of work.

“The scope of responsibilities of the CDAO role has also expanded as budget and resource constraints become even more of a problem,” said Alan D. Duncan, Distinguished Vice President Analyst at Gartner in a statement.

D&A budget remains a challenge 

Of those CDAOs who report a year-over-year increase in their function’s funding, 46% still report budget constraints as a challenge. 

“CDAOs who present better business cases to CFOs, receive better and quicker funding for their D&A initiatives. They also gain higher executive buy-in,” explained Duncan.

Therefore, Gartner said that the CDAOs must explain to the Chief Financial Officers (CFOs) how any change within the D&A funding models aligns with the ratio of D&A value propositions as a utility, enabler, or driver of the organisation. 

“However, only 49% of surveyed CDAOs have established business outcome-driven metrics that allow stakeholders to track D&A value. In addition, 34% have not established business outcome metrics for D&A,” said Duncan.

The results highlight the importance for CDAOs to enhance their authority and influence in driving initiatives forward. Additionally, they must possess a comprehensive understanding of the organisation’s value drivers and challenges from end to end to effectively demonstrate their value 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,” added Duncan.


The HR Observer

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