Last week we delved into the second strand to report on the interesting similarities in top-down issues with upskilling and retaining talent. In the first instalment, we scrutinised foundational issues, reporting on literacy, culture and strategy. Join us on the research journey as we shake down the biggest challenges for the biggest leaders in data.
The information in this report was pulled from data leader responses to the question: What are the key challenges to your data function that you are facing as its leader?
Threat
The third instalment of this four-part series investigates areas which are newly and extortionately under threat. This may be an aggressive word to summarise the section, but there is truth in it; with the rise of generative AI (genAI) and the futuristic boom in technological capability, there is a lot of new territory the data office must approach with suitable armament.
First, there is the threat that poor quality data imposes on internal decisions and operations, identified by a decent portion of data leaders. Next, keeping compliance tight and the data under impenetrable lock and key in the face of new advancements that inevitably impact rules and regulations is a heightened struggle for businesses.
The DataIQ Advisory Board identified resilience as, in some industries, of greater importance than even genAI. The research agrees. The two are of equal importance for leaders in 2024.
Data Quality (37.5%)
Data Quality (37.5%) Using the organisation’s valuable data to make the right decisions can only be done when that data can be trusted, and trust is built by understanding the variances and degrees of error present within the data sets.
The automated decision space has been raising the importance of the questions data teams ask of the available data, what they are asking of the data, and how intricately these outcomes are baked into wider ambition of business; yet there is a consensus from leaders that wider investment in data quality tooling is not on the table in many organisations. For greater insight and a personalised report into organisational quality maturity, take our three-minute quality indicator and benchmark your score against the aggregated response of other data leaders.
The quality mission thus becomes a challenge – with over one third (37.5%) of data leaders noting this explicitly. Johanna Hutchinson, Global Chief Data Officer, BAE Systems, explained how balancing digital transformation with quality data remains a challenge: “The biggest challenge will be balancing the scale of digital transformation while making sure that the basics of data standards and data quality stay embedded in the programmes that enable further integration of data between systems.”
Generative AI (50%)
Generative AI (50%)It is not surprising following the conversations of 2023 and 2024 that half of the leader respondents mentioned genAI explicitly when noting their challenges for the year ahead. Both the challenge that the sizable opportunity genAI presents as well as the risks, threats, and ethical concerns created were mentioned – having a firm grasp on both ends of this spectrum is imperative.
The AI skills shortage was also mentioned, which correlates with the ongoing recruitment and retention of talent across the industry. The desire for AI may outpace the ability to attain the skills that will find, deliver, and implement the right solutions.
Murtz Daud, Chief Data Officer, St. Andrews Healthcare, outlined the interplay between appetite for innovation and a larger illiteracy and lack of understanding in the business world of AI: “There is growing appetite to harness the power of large language models for enhancing business outcomes, however, there is also an organisation-wide gap in understanding the full potential and associated risks of AI.”
Daud further explained the process that has helped with this effort: “We must we go through a thorough process to identify areas where AI can deliver substantial value while being cost-effective, upholding principles of impartiality, transparency, and ethics, and have alignment to external healthcare regulations.”
Security and Privacy (50%)
Security and privacy measures are an increasing challenge for 50% of data leaders, not least because of the new risks and threats on ethics and regulation that the advent of large language models is affording. Data must be collected securely and privately and must be of high quality and integrity.
Also, 2024 has already seen an increasing incidence of hacking and malware incidences (think Letterboxd, Omni Hotels, and The Big Issue), which is causing more leaders to turn their heads towards cybersecurity as an imminent challenge.
Louise Maynard-Atem, Deputy Director (Data, Insights, and Fraud), Government Digital Service, is responsible for counter-fraud capabilities across GDS and noted how “the potential threat vectors that are introduced through the malicious use of AI are huge.”
Maynard-Atem continued: “I am keen to champion the use of AI, but need to temper this with the ethical concerns this may pose (particularly from a governmental and political angle). I believe appropriate regulation has a role to play in this space, and strongly believe we are at a critical moment right now.”
The next instalment of this article series will examine another aspect keeping data leaders up at night in 2024: Threat.
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