Gartner forecasts that by 2027, approximately 80% of data and analytics (D&A) governance initiatives will falter due to the absence of a genuine or artificially created crisis, as revealed by Gartner, Inc.
According to Saul Judah, Vice President Analyst at Gartner, the success of a D&A governance program hinges on its ability to drive prioritized business outcomes. He highlights that amid recent crises like COVID-19 or surging energy costs, Chief Data & Analytics Officers (CDAOs) who effectively steered their organizations through such disruptions swiftly adapted their D&A strategies to address the challenges at hand.
The shift from a tactical to a strategic approach in D&A governance is critical, wherein governance is viewed as a business-centric model rather than merely data-focused. Judah emphasizes the importance of reshaping governance to align with tangible business goals, embracing flexibility, sensitivity to risk and opportunity, and scalability.
Gartner analysts caution against the prevalent “one-size-fits-all” governance model, asserting that it doesn’t suit the diverse needs of most organizations.
The adoption of artificial intelligence (AI) and generative AI (GenAI) offers an opportunity for CDAOs to modernize outdated D&A governance practices. This includes integrating AI governance into their governance framework, which involves delineating organizational accountability, decision rights, risks, policies, and investment decisions for AI implementation.
Anurag Raj, Senior Principal Analyst at Gartner, suggests incorporating AI and GenAI-enabled capabilities into D&A governance programs. It’s predicted that by 2027, GenAI will expedite the value realization of D&A governance and master data management programs by 40%.
Before venturing into GenAI use cases, CDAOs are advised to ensure robust governance of core organizational data. Raj emphasizes prioritizing GenAI capabilities that enhance productivity in governance activities, facilitate broader adoption, and address specific business challenges effectively, such as enhancing customer data for targeted marketing.