CDAOs Struggle to Demonstrate Impact of AI: Gartner
Companies may want to be data-driven, but the executives in charge of proving the value of that data are struggling with their core mission, according to a new report from Gartner.
A survey of 504 chief data and analytics officers worldwide, conducted between September and November 2024, found that only 22% of their organizations have metrics that allow them to define, track, and communicate the majority of their work. An inability to measure the business impact of AI, data, and analytics was the top concern for 30% of the respondents.
“There is a massive value vibe around data, where many organizations talk about the value of data, desire to be data-driven, etc., but there are few who can substantiate it,” Gartner senior director analyst Michael Gabbard said in a statement. “Often, organizations that regularly align to data themes outperform their peers.”
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Bridging the Data Gap
This is an existential challenge for data and analytics leaders, given that 90% of them said that in the last 12 to 18 months using data to prove the value and outcomes of business initiatives has become their primary objective and will continue to be a priority moving forward. Creating an actionable data and analytics strategy was a primary responsibility of 91% of the survey’s respondents. Despite this, more than a third of the executives weren’t concerned with establishing and evolving an operating model, which Gabbard said demonstrates a gap between planning and execution.
“Organizations are increasingly prioritizing the development of a robust D&A strategy to enhance decision-making and operational efficiency and this falls to D&A leaders,” he said. “CDAOs must accelerate data-driven and decision-centric vision by spotting important trends early to make proactive, informed choices about D&A strategy and building operational context around these drivers.”
Pressure on those executives to deliver is likely to increase as an October 2024 Gartner survey found that 72% of CFOs viewed metrics, analytics, and reporting as a critical priority for 2025, and 57% cited data strategy and data management.
