AI is Reshaping CDO Leadership: What You Need to Know

At this year’s Gartner Data & Analytics Summit, one theme was impossible to ignore: AI is rewriting the rules of data leadership.

For years, CDOs and CDAOs have fought to prove their strategic value. Now, AI is presenting an opportunity to move beyond proving and into leading. The challenge? Only 3% of CEOs see CDOs as the leaders who will unlock AI’s value. That’s a gap—and a risk. If CDOs don’t actively claim their influence in shaping AI strategy, that responsibility will shift to other executives, leaving data leaders sidelined.

AI isn’t replacing CDOs. But it is changing their job description.

Where Do CDOs Fit?

Gartner predicts that by 2027, 50% of all business decisions will be automated or AI-driven. AI is already being embedded into business operations, shaping everything from financial planning to customer experience strategies.

That presents a defining moment for CDOs: Will they lead AI-driven decision-making, or will they be reduced to infrastructure managers while others dictate the strategy?

To be clear, this isn’t just about building AI models. It’s about owning the conversation around how AI-driven decisions are made, evaluated, and governed. If the data function isn’t central to those discussions, it means AI-driven decision-making is happening without the CDO’s oversight. That’s a risk—not just for the organization, but for the role itself.

The opportunity? CDOs who champion trusted, explainable AI will position themselves as indispensable. They will be the ones ensuring AI-driven decisions align with business goals, are ethically sound, and create competitive advantage.

Here’s How to Adapt

AI is forcing a shift in leadership. The best CDOs will no longer be judged by how well they manage data assets. They’ll be judged by how effectively they influence AI-driven strategy. And that influence depends on three things:

• Stakeholder Alignment: AI is now a business conversation, not just a technology discussion. CDOs must embed themselves in strategic decision-making, working with CFOs, COOs, and CEOs to ensure AI is being leveraged in ways that drive business outcomes.
• AI as a Business Enabler: AIs greatest value is not in automation; it’s about business transformation. CDOs who frame AI as a revenue driver (not just a compliance concern) will have far greater influence over enterprise strategy.
• AI Governance as a Competitive Advantage: Governance will be a differentiator. Organizations that establish AI trust, fairness, and explainability will win. CDOs must be the champions of AI governance not as a regulatory burden, but as an enabler of innovation.

This shift is already happening. By 2027, organizations that prioritize AI literacy for executives will achieve 20% higher financial performance. That means CDOs who educate and influence their executive peers on AI will hold the keys to long-term business impact. The role is evolving, and for those who adapt, it’s becoming more powerful than ever.

The Risks & Realities of AI-Driven Decision-Making

AI will be influencing more and more business decisions. And not all of those decisions will be good ones.

Gartner surfaced some of the most urgent AI governance questions, ones that keep data leaders up at night:

• “What if AI replaced your C-suite?” AI-driven decision-making advisors are already being consulted on high-stakes business decisions.
  As AI guidance becomes more influential in strategy, hiring, and performance management, leaders will need to ask: Will these AI-driven insights be more accurate? Will they outperform human decision-making? Will they even be legal? The implications are massive, and CDOs are in a unique position to shape how this AI is implemented, governed, and trusted at the highest levels of the organization.
• “What if AI failures became commonplace?” AI has the potential to make costly mistakes in finance, healthcare, and security. Without strong governance, AI failures will become business liabilities.
• “What if synthetic data introduced more risk than value?” Many organizations are turning to synthetic data to train AI models, but poor governance can lead to biased outcomes, security vulnerabilities, and compliance issues.

The companies that master AI governance will be the ones that turn risk management into competitive advantage. And the CDO is the leader most well-positioned to make that happen—if they step up to the challenge.

The path to influential leadership is this:

• Own AI-driven decision-making. CDOs must ensure AI-powered insights are explainable, trustworthy, and aligned with business goals.
• Lead AI literacy and advocacy across the executive team. Organizations that educate their leaders on AI will outperform their peers. CDOs should take the initiative in making this happen.
• Position themselves as business strategists, not just data stewards.

Reliable Data is the Foundation

AI models can’t make good decisions without good data, and that’s where data observability comes in.

The 2024 Gartner® Market Guide for Data Observability Tools explores how organizations are tackling data quality, why it’s essential for AI governance, and what D&A leaders should consider when evaluating solutions.

Bigeye helps CDOs build the data foundation AI needs to deliver real business outcomes. Download the full report to see where the market is headed and how you can stay ahead.