AI disruption triggers change in data analytics in 61% of organisations

Disruptive artificial intelligence (AI) technologies are forcing 61% of organisations 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 through November 2023, brings insights from 479 chief data and analytics officers globally.

Crucially, the survey reveals that CDAOs' key responsibilities are expanding due to the rapid evolution of D&A and AI technologies. Alan D. Duncan, Distinguished VP Analyst at Gartner, reported, "Responding to the rapid evolution of D&A and AI technologies, CDAOs are wasting no time in making changes to their operating model." The changes are driven primarily by the need to "support data-driven innovation and accelerate organisational agility, with data governance at the core."

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 the respondents indicated plans to revamp the way they manage their data assets, adopting and applying governance policies, practices and standards to ensure their D&A operating model is fit for current and future purposes.

The growth of responsibilities within the CDAO's role has also been noted. According to the survey, 74% are responsible for the D&A strategy and 68% for D&A governance. 49% of CDAOs stated that generative AI is within their scope of primary responsibilities, a significant rise from 34% in 2023. Duncan stated, "No other role than the CDAO is responsible for many of the key enablers of AI, which include data governance, D&A ethics, and data and AI literacy."

However, expanding responsibilities comes with challenges, particularly budget constraints, as reported by 46% of CDAOs who have seen an annual increase in their function's funding. Duncan suggests that CDAOs could gain faster and more generous funding for their D&A initiatives if they presented better business cases to CFOs, as this would heighten executive buy-in.

CDAOs must effectively communicate how changes in D&A funding models align with the organisation's D&A value propositions. However, Duncan underlines that "only 49% of surveyed CDAOs have established business outcome-driven metrics that allow stakeholders to track D&A value." Similarly, 34% have not established business outcome metrics for D&A.

CDAOs require greater influence to achieve organisational objectives. Without this enhancement in power, "by 2026, 75% of CDAOs who fail to make organisationwide influence and measurable impact their top priority, will be assimilated into technology functions," Duncan warned.

Gartner's CDAO survey highlights the significant impact of disruptive AI technologies on organisations' data and analytics operating models. As CDAOs navigate the evolving landscape, they face the dual challenge of expanding responsibilities and securing adequate funding for D&A initiatives. Effective communication, alignment with business outcomes, and prioritising organisational influence are key to driving success in this rapidly evolving domain. CDAOs must seize the opportunity to shape the future of data-driven innovation and organisational agility in the era of AI disruption.