According to Gartner survey results released Monday, artificial intelligence is causing many companies to develop and rethink how they control and analyze data.
According to the findings of a study of 479 chief data and analytics officers, chief data officers, and chief analytics officers from around the world, 61% of organizations are rethinking their data and analytics (D&A) operational models in response to the effect of disruptive AI technologies.
When asked what adjustments chief data analytics officers (CDAOs) should make to their D&A operating model to be appropriate for current and future objectives, Gartner discovered that 38% want to rebuild their D&A architecture within the next 12 to 18 months.
Also, 29% claimed they would change how they handle data assets and implement governance rules, processes, and standards.
“Responding to the rapid evolution of D&A and AI technologies, CDAOs are wasting no time in making changes to their operating model,” stated Gartner Vice President Analyst Alan D. Duncan.
“While the management of their organization’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,” he said.
“The scope of responsibilities of the CDAO role has also expanded as budget and resource constraints become even more of a problem,” he said.
Analysing AI as Musical Stars
The survey results, issued ahead of Gartner’s Data & Analytics Summit in London in May, showed that AI has become part of the tasks of the majority of CDAOs, with 58% claiming it is within their scope of responsibility, up from 34% in 2023.
“A lot of organizations, especially in the private sector, are redefining their entire business model based on AI, whether it’s going to be for the value of automation, operational excellence, or forging new business paths,” said Donna Medeiros, a senior analyst with Gartner.
“There are a lot of industries that have been using AI for a long time, but gen AI, in particular, has been undergoing a lot of pilots,” she told TechNewsWorld.com.
Another research company, Forrester, made the point in its report “AI Is Ready For The Spotlight, But Data And Analytics Determine If It Shines” that “outputs from AI technologies will only be good as the data that goes into them, so business and technology leaders must embrace best practices for data and analytics to maximize the value from their artificial intelligence.”
“If generative AI is the star actor in ‘Business Technology: The Musical, 2024,’ data and analytics leaders are the stage managers,” wrote Forrester analyst Zeid Khater, along with Aaron Katz, Kim Herrington, Jayesh Chaurasia, Brandon Purcell, Noel Yuhanna, Evan Megan, and Jen Barton.
Setting the Stage for Success
Before the star technology can provide value to its stakeholders and consumers, data and analytics executives must empower the people, processes, and platforms necessary for success, according to Forrester.
“Forward-thinking data and analytics teams know that outputs from AI technologies will only be as good as the data that goes into them, and they will embrace data platforms and data quality practices to support [large language models] and unstructured data as well as data skills training to put their staff in the best position to deliver value with new AI technologies,” Khater said in a statement.
“The work that data and analytics teams do behind the scenes will determine whether new AI technologies flop or shine in the spotlight when they hit center stage,” he said.
Forrester emphasized that enhancing data quality enables machine learning models to properly discover underlying patterns, increasing prediction accuracy.
“When organizations prioritize data quality through rigorous metrics, assessments, continuous monitoring, and improvement, they not only enhance model reliability but also reduce the risk of biased or erroneous conclusions,” he said. “This improvement in model accuracy translates into cost savings, improved business outcomes, and a competitive advantage.”
The Need for Metrics
While metrics will be essential to promoting AI in the industry, Gartner discovered that CDAOs fall short in this regard. According to the report, just 49% of surveyed CDAOs have defined business outcome-driven KPIs that enable stakeholders to measure D&A value. Also, 34% have not defined business success KPIs for D&A.
“Forty-nine percent is low because it means that less than half understand that they need to work with the business to put metrics in place to demonstrate the value of what they’re accomplishing because invariably they’re going to be asked, ‘What did we get for this investment?'” Medeiros explained.
“The D&A leader cannot do this in a vacuum,” she added. Their colleagues will understand what is necessary to the business and what the [key performance indicators] are, allowing them to get to the real data.
“CDAOs need to work with all business lines to estimate for all use cases and projects what the impact on return on investment will be based on metrics established during planning time to understand what they achieve,” she went on to say. “D&A leaders need to engage with business folks to establish metrics and get well above the 49%.”
“CDAOs also have to be comfortable talking about business discipline,” she went on to say. “That is difficult for many since they have not been D&A leaders for a long time. For the most part, it’s still a new position.
According to the report, just 22% of CDAOs have held their positions for five years or longer. And those who hold those positions do not want to stay there; 56% of CDAOs polled said they were seeking another employment. “That’s because there’s so many demands on that position,” Medeiros told reporters.
Power Play Needed
According to the Gartner report, CDAOs incur considerable costs as they extend their duties. Among CDAOs that report a year-over-year rise in their function’s funding, 46% nevertheless identify budget restrictions as a difficulty.
“CDAOs that make stronger business cases to CFOs get better and faster funding for their D&A activities. “They also gain more executive buy-in,” Duncan explained.
Gartner stated that CDAOs must increase their authority and influence to make things happen. They must also fully grasp the organization’s value levers and pain areas to demonstrate their worth to the board.
“If not, by 2026, 75% of CDAOs who fail to make organization-wide influence and measurable impact their top priority will be assimilated into technology functions,” according to Duncan.
Source- technewsworld
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