The role of data and analytics leaders in ensuring AI readiness

Data and analytics (D&A) leaders, such as chief data and analytics officers (CDAOs), play a pivotal role in steering organizations through the complexities of AI. Their expertise in leveraging technology for business value and managing AI’s knowledge source makes their involvement in AI strategies crucial.

Despite their importance, many D&A leaders are excluded from strategic AI discussions, with only 26% participating in the development of GenAI strategies, as highlighted by Gartner’s Generative AI 2024 planning survey. To change this narrative, D&A leaders must assertively claim their place in shaping the organization’s AI journey. By undertaking the actions outlined below, they can effectively steer AI initiatives that not only align with but also drive business objectives forward.

Deliver D&A Fundamentals to Establish Value Creation

To secure executive support and a pivotal role in AI discussions, D&A leaders must position their function as a value creator and profit center. Prioritizing execution-focused activities is essential for advancing D&A maturity and enhancing financial performance. Gartner’s analysis reveals that D&A leaders who concentrate on managing the D&A function, governance, and project execution achieve superior financial outcomes. To truly move the needle, leaders should:

· Manage the D&A function by prioritizing projects with clear business value.

· Deliver projects by ensuring portfolio health and enhancing deployment maturity.

· Drive governance maturity by deploying data products that are accessible, ready for consumption, current, and appropriately governed.

Demonstrating D&A’s impact on tangible business value elevates leaders from technical supporters to strategic business partners. This transformation enables D&A leaders to engage in strategic AI conversations as key stakeholders, driving business value from AI initiatives aligned with organizational goals. By focusing on these fundamentals, D&A leaders can boost their organization's maturity level, potentially increasing financial performance by up to 30%.

Align AI Ambitions with Business Strategy

Delivering on D&A fundamentals is just the beginning for D&A leaders aiming to participate in strategic AI discussions. To add meaningful value to these conversations, leaders must proactively guide executive teams in channelling AI efforts into projects that align with business strategy and deliver tangible results. Additionally, D&A leaders should demonstrate their ability to minimize and mitigate AI risks, effectively leading and guiding executives through the AI journey.

The initial step involves understanding the organization's AI appetite and ambition. D&A leaders should conduct a strategic assessment of AI opportunities and risks, utilizing tools like the AI opportunity radar. With their critical understanding of both the aspirations and risks associated with AI, D&A leaders are uniquely positioned to spearhead these discussions.

Setting realistic expectations is crucial. D&A leaders must showcase potential AI risks and the mitigation strategies available for each identified opportunity. Their expertise in the technical and business implications of data and AI tools equips them to understand the risks and mitigation measures for each AI opportunity on the radar. By sharing their insights, D&A leaders can establish realistic expectations and ensure that necessary risk mitigation measures are in place, effectively guiding executive leaders in their AI endeavours.

Extend D&A Governance to Ensure AI-Ready Data

For AI initiatives to thrive, organizations must have access to accurate, reliable, and transparent AI-ready data, safeguarded by robust protection and privacy measures. D&A leaders are tasked with delivering AI-ready data for each use case to shield their organizations from AI risks.

This responsibility involves revitalizing and expanding D&A governance programs, offering a chance to clarify to executive leaders the nature of AI-ready data and its connection to AI ambition, D&A governance, and business value.

AI-readiness comes from the ability to continuously meet multifaceted AI requirements. D&A leaders must educate their stakeholders to the extent that they understand this fact. Providing continuous AI-ready data involves aligning it with specific use cases, measuring and qualifying it, and applying governance practices through an iterative process based on the availability of metadata. 

AI-ready data is not a one-time achievement but a continuous endeavour necessitating expertise in data management, observability, and governance to identify suitable data for each AI use case.

D&A leaders should position AI governance as an extension of D&A governance, helping executive leaders understand that AI is not a separate, stand-alone program but one that is interrelated with D&A. This approach places D&A leaders at the forefront of their organization’s data, analytics, and AI strategy.

Upskill AI-Ready People

Developing AI literacy is essential not only for cultivating key skills but also for fostering a willingness to use AI as a tool for empowerment. By implementing formal training programs that demonstrate how employees can leverage AI tools for their benefit, organizations can boost enthusiasm and dispel any misconceptions. Fortunately, D&A leaders have a prime opportunity to initiate an AI literacy program by integrating it into their existing data literacy initiatives. By positioning AI literacy as an extension of data literacy, D&A leaders can effectively upskill employees with minimal resistance.

Expanding data literacy to encompass AI literacy does not require a complete overhaul of existing programs. D&A leaders can seamlessly incorporate AI literacy by building on current data literacy concepts, programs, and frameworks. This approach allows for a smooth transition and ensures that employees are equipped with the necessary skills to harness AI's potential, thereby enhancing their capabilities and contributing to the organization's success.

Gartner analysts will discuss more topics related to data and analytics at the Gartner Data & Analytics Summit, taking place June 2-3, in Mumbai, India.

By Debra Logan, Distinguished VP Analyst at Gartner and Ehtisham Zaidi, VP Analyst at Gartner