The changing Chief Data Officer landscape
According to PwC’s 27th Global CEO Survey, 28% of Irish chief executives and 45% of CEOs around the world believe their company will not be viable in 10 years if it stays on its current path. Their sense of urgency around a course correction is due in part to increased interest in generative artificial intelligence (GenAI), driven by the emergence of exciting tools such as ChatGPT and Copilot.
The same survey indicates that 60% of CEOs expect to create efficiency benefits and improve product and service quality with GenAI. Concerns around data privacy and the data used to train AI models are forcing organisations to reshape their data strategy.
Meanwhile, our new Chief Data Officer Study found that data is playing an increasingly important role – reflected in the 13% increase in references to data this year within annual reports of the top 2,500 companies globally.
The data-CDO contradiction
What’s surprising, however, is that fewer organisations have a CDO in place when compared to 2022. The number of CDO appointments has also decreased. There could be a number of reasons for this, including:
- CDO responsibilities embedded in other roles
- funding cuts
- market maturity
- the emergence of roles such as chief knowledge officer or chief AI officer.
Clearly, CDOs are being challenged to show return on investment through the enablement of data. There seems to be a real gap between the prevalence of data in conversations and the relevance of its value on the ground.
Publicly, the data narrative appears defensive where CDOs are championing risk management and governance, not innovation. Here lies the challenge facing CDOs: balancing data governance with pressure to demonstrate value.
The shifting profile of organisations employing CDOs
Within established organisations, data solutions typically originate from within functions, while CDOs focus more on the defensive responsibilities of data enablement. In larger organisations, the breadth and complexity of the CDO role have been widely discussed and considered too extensive for a single individual to manage.
CDOs working in smaller organisations are able to take a more hands-on approach, pursuing innovative solutions with a value-driven narrative. It’s no wonder, then, that we see that the profile of companies with CDOs shifting towards smaller organisations.
Key actions businesses can take today
1. Prioritise data enablement investment
Use your data to determine how to invest strategically to achieve best-practice outcomes – or to aggregate demand across the business, tapping into economies of scale that increase margins and productivity.
2. Drive innovation and monetisation
Data is an asset. Advocate for value creation opportunities and productivity gains that create a competitive advantage. Develop new products and services with data that meet evolving customer needs.
3. Keep pace with market developments
Look to the market for best practices in relation to data. Stay ahead of the curve when it comes to emergence of new technologies and data sources.
About this survey
PwC’s Chief Data Officer Study looked at the world’s 2,500 largest publicly listed companies by market capitalisation. We analysed six years of their corporate annual and integrated reports, using natural language processing and cutting-edge language models to identify topics commonly paired with the data agenda.
For our analysis, we defined the CDO role based on seniority, role in the organisation and scope of work – rather than just the title set by the firm. Throughout this study, when we say ‘Chief Data Officer’, we mean an individual who has data-focused responsibilities at the C-suite or C-minus-one level, regardless of their job title.
We are here to help you
PwC can guide you on how to create value for your organisation through data. We’re knowledgeable about best practices in the market, and we’re always aware of new technologies.
We share our insights to help you drive an innovation narrative within your own role.
Chief Data Officer Study 2023/2024
Discover insights into CDOs’ roles and challenges
