Deloitte: Charting the Shifting Priorities of a CDO
With data now being seen as the new oil, the role of the Chief Data Officer, tasked with unlocking the value of data to drive organisational success, is being seen as increasingly important.
Traditionally, CDOs have focused on developing data strategies, overseeing data management, and fostering a data-driven culture within their organisations. However, the global context for CDOs is rapidly evolving, with advancements in AI and machine learning technologies creating new opportunities and challenges.
Deloitte's 2024 Chief Data Officer survey provides a comprehensive snapshot of the changing priorities and challenges faced by CDOs in this dynamic environment. The survey reveals significant shifts in the focus and responsibilities of CDOs, particularly in light of the growing importance of AI and Gen AI in that role.
AI boom shifting CDO priorities
According to the Deloitte survey, CDOs are increasingly focusing on AI and Gen AI as top priorities for the coming year, with 49% of respondents considering these technologies as core priorities for the next 12 months.
This shift towards AI and Gen AI reflects the transformative potential of these technologies in extracting value from data and driving innovation across industries. From predictive analytics to natural language processing, AI technologies are enabling organisations to gain deeper insights from their data, automate complex processes, and create new products and services.
"AI is the next frontier for businesses and Chief Data Officers are key to unlocking its potential," says Tony King from Deloitte
However, the survey also reveals that CDOs are not neglecting their traditional responsibilities. A significant proportion of respondents (42%) continue to prioritise building the business case for data investment, highlighting the ongoing challenge of securing resources and buy-in for data initiatives.
Additionally, 35% of CDOs are focusing on data governance and insights and analytics, underscoring the importance of maintaining data quality and compliance in an increasingly complex regulatory landscape.
- 45% of CDOs have seen an increase in their budgets in the past 12 months
- 73% of CDOs now have a data strategy in place, up from 61% last year
- Nearly half (49%) of CDOs have identified prioritising AI and GenAI as a key focus area for the next 12 months
- Two thirds (66%) of CDOs say they are actively fixing their organisations data quality in order to better adopt AI
- 64% of CDOs report that they have improved the use of AI for their organisation
- Only 49% of CDOs believe their CEO has a good understanding of the CDO role
The evolving nature of the CDO role is further reflected in the changing skill requirements for data teams. CDOs in more mature organisations are seeking advanced skills such as machine learning (25%), communication (25%), and data architecture (24%). This trend indicates a shift towards more sophisticated data capabilities and the need for data professionals who can effectively communicate insights to non-technical stakeholders.
In contrast, CDOs in less mature organisations are focusing on foundational skills like data management (23%), change management (23%), and data engineering (23%). This difference in priorities highlights the varying stages of data maturity across organisations and the need for CDOs to tailor their strategies accordingly.
Organisational alignment and impact
The Deloitte survey also provides interesting insights into the organisational positioning of CDOs.
While 72% of CDOs report to C-suite executives, there is a strong desire among CDOs for an even more strategic reporting structure. More than half of the surveyed CDOs express a preference to report directly to the CEO, although currently only 3% do so.
This desire for closer alignment with top leadership underscores the strategic importance of the CDO role and the need for data-driven decision-making at the highest levels of organisations. It also reflects the growing recognition that data is not just a technical asset but a strategic one that can drive business value and competitive advantage.In terms of impact, the survey paints a positive picture of CDO effectiveness.
The majority of CDOs (66%) report success in enabling their organisations to better leverage data for enhancing business process efficiency and ensuring regulatory and legal compliance. Additionally, 63% of CDOs have improved strategic decision-making within their organisations.
"Chief Data Officers are more than just data guardians – they're strategic advisors. Their ability to communicate the value of data and AI to the C-suite is crucial for driving real change across an organisation," says Andy Whitton, Data, Privacy and Analytics Partner at Deloitte.
Changing priorities of a CDO
Despite reported successes, CDOs face significant challenges in realising their ambitions.
Navigating complex regulatory environments remains a primary concern; evolving data privacy laws create a challenging compliance landscape. Furthermore, securing investment for data initiatives continues to be difficult, particularly where the value of data is not fully recognised.
“AI is the next frontier for businesses and chief data officers are the key to unlocking its potential.”
The increased focus on AI presents both opportunities and challenges for CDOs. While these technologies offer transformative potential, they also introduce ethical considerations such as algorithmic bias and responsible usage.
Thus, CDOs must balance innovation with responsibility while developing robust governance frameworks to ensure ethical practices.
As organisations navigate these complexities, the strategic importance of CDOs will likely continue to grow as they drive digital transformation while addressing cultural barriers and evolving regulations.
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