Data Leaders Struggle to Measure Impact of AI and Analytics on Business, Survey Finds
AI has penetrated the data and analytics department in most companies, but its impact on growing business value remains vague.
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Thirty percent of chief data and analytics officers (CDAOs) identify the inability to measure the impact of data, analytics, and AI on business outcomes as their top challenge, according to a new survey. This challenge highlights a broader industry struggle, where businesses increasingly invest in AI-driven decision-making yet often lack the frameworks to effectively quantify its contributions. Many organizations express a desire to be data-driven but struggle to transition from theoretical value to demonstrable impact, making it difficult to justify further investment or refine strategies for better outcomes.
The annual Gartner Chief Data & Analytics Officer Agenda Survey, conducted between September and November 2024 among 504 data and analytics executives worldwide, highlights a critical gap between the growing emphasis on data-driven strategies and the ability to quantify their business value.
The survey found that for over 90% of respondents, focusing on value and outcomes has become the primary focus of their role in the past 12 to 18 months, and will continue to be a key area of concern in the future. Despite this, only 22% of organizations have defined, tracked, and communicated business impact metrics for most of their data and analytics use cases.
“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,” said Michael Gabbard, Senior Director Analyst at Gartner. “Often, organizations that regularly align to data themes outperform their peers.”
The report also notes that organizations are increasingly prioritizing the development of strong data and analytics (D&A) strategies to enhance decision-making and operational efficiency. However, these efforts often fall on the shoulders of D&A leaders, who are tasked with driving data-centric visions while staying ahead of emerging trends. Gabbard urged CDAOs to accelerate the implementation of data-driven strategies by anticipating key trends and adapting their strategies accordingly.
Furthermore, the survey revealed that 91% of CDAOs consider creating an actionable D&A strategy to be a primary responsibility. However, more than a third of them do not view establishing and evolving the operating model as a key responsibility, exposing a persistent gap between strategy formulation and execution in the D&A sector.