Chief data officers (CDOs) are increasingly stepping into the role of innovation leaders, as more organisations move beyond the basics of data governance and start investing in artificial intelligence. According to a new report from Deloitte, 70 per cent of CDOs are now deploying or testing AI systems, although few believe the technology is yet transforming their business at scale.
The findings reflect a maturing data landscape in which AI is no longer treated as a standalone technology upgrade, but as a business capability built on complex foundations. At high-maturity organisations, AI has become the top focus for 67 per cent of CDOs, followed closely by the development of data products (56 per cent), an indication that value creation is taking precedence over traditional data quality metrics.
However, the report also reveals a two-speed reality. While more advanced organisations are using AI to deliver measurable impact, those with lower data maturity remain preoccupied with getting the basics in place. Among these, data governance is the most pressing priority (63 per cent), followed by data strategy and quality.
AI strategy depends on data strategy
One of the report’s clearest findings is that AI success remains inseparable from a coherent and trusted data strategy. Richard Bovey, Chief for Data at AND Digital, said that many businesses are only now realising that the effectiveness of AI hinges on the health of the data that feeds it. “The conversation around data and AI has shifted dramatically over the last few years,” Bovey said. “AI is not just a technology upgrade, it is a capability that requires good quality, well governed data. Without that, even the most advanced models will fail to deliver meaningful or reliable outcomes.”
Despite the rising interest in AI, data strategy remains a long-term priority. One-third of CDOs still consider it a top area of focus heading into 2025. This continued attention highlights the strategic nature of data in digital transformation, less as a raw resource, and more as an asset that needs to be shaped, structured and aligned with business intent.
For many, that process is still ongoing. Deloitte warns that without a shared, documented vision for how data supports organisational performance, businesses risk falling into patterns of siloed activity and duplicated effort. A unified strategy is essential not just for data teams but for building cross-functional understanding of how data should be used and governed.
Fragmentation blocks progress and distorts outcomes
Even as AI takes centre stage, major structural issues persist. According to the report, 64 per cent of business leaders cite fragmented data as the single biggest barrier to successful AI deployment. Without integration, data cannot flow across systems, teams or use cases, leading to blind spots in model training and inconsistent outputs across the enterprise.
This fragmentation is not simply a technical hurdle. It speaks to broader cultural and operational misalignments that continue to frustrate digital transformation. “The organisations that will lead in the next decade are the ones treating data as a product, investing in data literacy across their workforce, and building AI systems that are transparent, governed and aligned to real business value,” Bovey added.
The report makes it clear that AI cannot be treated as a bolt-on to existing systems. As CDOs become more central to innovation agendas, the ability to build clarity, coherence and accountability into both data and AI ecosystems will define which organisations make the leap and which remain stuck at the starting line.
