A new report by Data Leaders reveals that Chief Data Officers (CDOs) are at a critical juncture in their roles, shifting from managing data to driving business transformation through artificial intelligence (AI) at scale.
The Voice of the Chief Data Officer 2024 report, produced in collaboration with Databricks, draws on insights from 40 leading CDOs and technology experts who participated in the Guild CDO think tank - including CDOs from major organizations such as FrieslandCampina, Syngenta, BAE Systems, and Macmillan Cancer Support.
The findings of the report indicate that CDOs have reached a tipping point in their AI journey, moving beyond proof-of-concept stages to delivering tangible business impact.
Those with strong leadership support are increasingly implementing value-driven data initiatives, embedding data into strategic projects, securing additional investment, and generating both financial and societal benefits.
This transformation, the report notes, is being driven by broad data engagement programs, a disciplined focus on rapid delivery, and an approach dubbed “data therapy” to better understand organizational needs.
However, challenges remain, as 57% of data teams report that decisions are not sufficiently data-backed, and 58% say their executive committees lack adequate data literacy.
A lack of data readiness for AI
One of the primary obstacles to scaling AI, as identified by the report, is data readiness.
CDOs cite the lack of preparedness as the biggest barrier, especially in deploying generative AI, alongside issues like cost, explainability of large language models (LLMs), talent shortages, and cultural resistance to AI adoption.
According to benchmarking data, only 31% of organizations have established a global data architecture, and just 25% have a global data quality program in place.
And while many organizations are feeling pressure from leadership to adopt generative AI, only 38% of CDOs surveyed have assumed responsibility for its integration, revealing a disconnect between executive expectations and practical implementation.
The evolving role of the CDO
As AI integration becomes more central to corporate strategy, the role of CDOs is expected to diverge. Currently, only 11% of CDOs report directly to the CEO.
However, as AI continues to evolve, CDOs will either take on a leadership role in driving company-wide transformation or focus on strengthening core data capabilities.
This shift highlights the need for organizations to clearly define the role and responsibilities of their CDOs and ensure they recruit the right profiles for these critical positions.
Pascal Clément, Co-Founder and Executive Chairman of Data Leaders, emphasized the importance of AI integration.
"Voice of the CDO 2024 demonstrates that organisations are finally recognising that strategic AI integration is the future of their business and are rightfully supporting CDOs to lead this transformation, investing in robust data foundations and aligning them with strategic objectives,” said Clément
“These organisations are poised to accelerate their business transformation while those who do not recognise data and AI as a core competency risk backsliding in the new AI-driven environment,” said Pascal Clément, Co-Founder and Executive Chairman at Data Lead
Dael Williamson, EMEA Field CTO at Databricks, echoed this sentiment, underscoring the importance of leadership and a data-engaged culture for successful transformation.
He noted that the unfolding implications of AI raise significant questions for the future of business and society, stating that: “For CDOs to truly achieve success and transformation, they must recognise the foundational elements and driving forces behind this: leadership, strategic integration of AI, and a data-engaged culture.”
“Unfolding implications of AI continue to raise questions over the future of business, the fast-evolving role of CDOs, as well as society at large, creating many new challenges.
Richard Pope, Co-Founder and CEO of Data Leaders, concluded: “CDOs face challenges at every step of the data and AI-enablement journey.
“This report offers real-life examples and practical advice for CDOs, regardless of their industry or maturity.”
