CDOAs Are Struggling To Measure Data, Analytics, And AI Impact: Gartner Report

In our data-driven world, organizations strive to leverage data effectively, but the executives tasked with proving its value are struggling to achieve their core objectives. Nearly one-third (30%) of Chief Data and Analytics Officers (CDAOs) said their top challenge is the inability to measure data, analytics, and AI impact, according to a recent Gartner survey.

The annual Gartner Chief Data & Analytics Officer Agenda survey also highlights that for most of the data and analytics leaders (90%), the main focus over the past 12 to 18 months has been delivering tangible business value, such as cost savings and revenue growth, along with real-world outcomes like better decision-making and improved customer experiences.

Gartner expects this to remain a priority moving forward. However, only 22% of organizations have clearly defined, tracked, and shared business impact metrics for most of their Data & Analytics (D&A) projects.

Despite the growing emphasis on data-driven strategies, many organizations struggle to prove the real impact of their data initiatives. “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, Sr. Director Analyst at Gartner. “Often, organizations that regularly align to data themes outperform their peers.”

Gartner’s research highlights the growing urgency for organizations to refine their data and analytics strategies to stay competitive in an AI-driven world. “Organizations are increasingly prioritizing the development of a robust D&As strategy to enhance decision-making and operational efficiency and this falls to D&A leaders,” said Gabbard.

“CDAOs must accelerate data-driven and decision-centric vision by spotting important trends early to make proactive, informed choices about D&A strategy and building operational context around these drivers.”

The Gartner survey also reveals that for 91% of CDAOs creating an actionable D&A strategy is a primary responsibility. However, many face challenges in putting these strategies into action and aligning them with their organization’s goals. Without a well-defined operating model, even the most well-thought-out strategies can fall short of making a significant impact on the business.

Traditional ROI metrics often fail to capture the full value of data initiatives, making it harder to justify AI and analytics investments. With data leaders now focused on demonstrating business outcomes, CDAOs face growing pressure to prove the tangible impact of data-driven initiatives. This indicates an existential challenge for data and analytics leaders.

“We found that while creating an actionable D&A strategy is a primary responsibility for these CDAOs, more than one-third of them do not identify establishing and evolving the operating model as a primary responsibility,” concluded Gabbard. “There is a perennial gap between planning and execution for D&A leaders.”

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Garnet raised similar concerns in its CDAO Agenda 2024: Reinvent Yourself or Risk Failure report published in April last year. At the time, 61% of respondents shared that their organization was forced to evolve or rethink its data and analytics strategies due to disruptive AI technologies. It also underscored funding challenges with 46% of CDAOs citing budget constraints despite increasing responsibilities. The survey predicted that by 2026, 75% of CDAOs who fail to demonstrate organizational influence and impact will risk being absorbed into technology functions.

A recent Informatica survey also highlighted the difficulty faced by data leaders in demonstrating business value. Almost all (97%) of data leaders shared they are struggling to show the impact of GenAI initiatives. The survey also showed that while 2025 is the year to prove AI’s business value, 92% of respondents worry that AI pilots are moving forward without addressing past data challenges.

The annual Gartner Chief Data & Analytics Officer Agenda Survey was conducted from September through November 2024 among 504 data and analytics executive leaders across the world. Gartner analysts are set to provide further insights on data and analytics trends during the Gartner Data & Analytics Summits, scheduled for March 3-5 in Orlando, FL.

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