Gartner: Organizations Are Evolving D&A Operating Model Because of AI
May 02, 2024
Share this

A majority (61%) of organizations are forced to evolve or rethink their data and analytics (D&A) operating model because of the impact of disruptive artificial intelligence (AI) technologies, according to a new Gartner, Inc. survey.

"Responding to the rapid evolution of D&A and AI technologies, CDAOs are wasting no time in making changes to their operating model," said Alan D. Duncan, Distinguished VP Analyst at Gartner. CDAOs are doing it to support data-driven innovation and accelerate organizational agility, with data governance at the core.

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 that their D&A architecture will be overhauled over the next 12-18 months, and 29% said they will revamp how they manage data assets and adopt and apply governance policies, practices and standards.

CDAOs Are Expanding Responsibilities

"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," said Duncan. "The scope of responsibilities of the CDAO role has also expanded as budget and resource constraints become even more of a problem."

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 (GenAI) is within their scope of primary responsibilities. AI is within scope for 58% of CDAOs, which is an increase from 34% in 2023.

CDAOs to Negotiate the Way D&A Is Funded

The expansion of responsibilities entails a significant cost for CDAOs. Among 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," said Duncan.

CDAOs must explain to the CFO how any change in D&A funding models aligns to the ratio of D&A value propositions as a utility, enabler or driver of the organization. "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.

CDAOs need to grow their power and influence to make things happen. They also must understand the value levers and pain points of the organization end to end to showcase their value 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," said Duncan.

Methodology: The annual Gartner Chief Data & Analytics Officer (CDAO) survey was conducted from September through November 2023 among 479 chief data and analytics officers, chief data officers (CDO) and chief analytics officers (CAO) across the world.

Share this

The Latest

May 23, 2024

Hybrid cloud architecture is breaking the backs of network engineering and operations teams. These teams are more successful when their companies go all-in with the cloud or stay out of it entirely. When companies maintain hybrid infrastructure, with applications and data residing across data centers and public cloud services, the network team struggles. This insight emerged in the newly published 2024 edition of Enterprise Management Associates' (EMA) Network Management Megatrends research ...

May 22, 2024

As IT practitioners, we often find ourselves fighting fires rather than proactively getting ahead ... Many spend countless hours managing several tools that give them different, fractured views of their own work — which isn't an effective use of time. Balancing daily technical tasks with long-term company goals requires a three-step approach. I'll share these steps and tips for others to do the same ...

May 21, 2024

IT service outages are more than a minor inconvenience. They can cost businesses millions while simultaneously leading to customer dissatisfaction and reputational damage. Moreover, the constant pressure of dealing with fire drills and escalations day and night can take a heavy toll on ITOps teams, leading to increased stress, human error, and burnout ...

May 20, 2024

Amid economic disruption, fintech competition, and other headwinds in recent years, banks have had to quickly adjust to the demands of the market. This adaptation is often reliant on having the right technology infrastructure in place ...

May 17, 2024

In MEAN TIME TO INSIGHT Episode 6, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses network automation ...

May 16, 2024

In the ever-evolving landscape of software development and infrastructure management, observability stands as a crucial pillar. Among its fundamental components lies log collection ... However, traditional methods of log collection have faced challenges, especially in high-volume and dynamic environments. Enter eBPF, a groundbreaking technology ...

May 15, 2024

Businesses are dazzled by the promise of generative AI, as it touts the capability to increase productivity and efficiency, cut costs, and provide competitive advantages. With more and more generative AI options available today, businesses are now investigating how to convert the AI promise into profit. One way businesses are looking to do this is by using AI to improve personalized customer engagement ...

May 14, 2024

In the fast-evolving realm of cloud computing, where innovation collides with fiscal responsibility, the Flexera 2024 State of the Cloud Report illuminates the challenges and triumphs shaping the digital landscape ... At the forefront of this year's findings is the resounding chorus of organizations grappling with cloud costs ...

May 13, 2024

Government agencies are transforming to improve the digital experience for employees and citizens, allowing them to achieve key goals, including unleashing staff productivity, recruiting and retaining talent in the public sector, and delivering on the mission, according to the Global Digital Employee Experience (DEX) Survey from Riverbed ...

May 09, 2024

App sprawl has been a concern for technologists for some time, but it has never presented such a challenge as now. As organizations move to implement generative AI into their applications, it's only going to become more complex ... Observability is a necessary component for understanding the vast amounts of complex data within AI-infused applications, and it must be the centerpiece of an app- and data-centric strategy to truly manage app sprawl ...