Data and AI are crucial for your company, but not anyhow

The fact that data has become one of the key drivers of the modern economy is nothing new. Today, web giants like Google, Amazon, or Apple have built their empires on this new black gold. However, technology players are not the only ones interested in and profiting from the collected information. More and more decision makers are confirming their interest in AI (and thus data), but the road ahead is still long.

In the constantly evolving global economic context, the significance of big data and artificial intelligence (AI) has never been more strategic. For several years, executives have been asserting that their organizations are significantly increasing investments in this field. As early as 2019, a study conducted by NewVentage Partners (now Wavestone) estimated that 91.6% of companies were planning to increase investments in "big data". This trend has only strengthened in recent years with the gradual rise of artificial intelligence. Data can play a crucial role in various business aspects: personalized offers and services, optimization of production or supply chains, order forecasting, enhanced customer experience, product innovation, risk management, and more. Coupled with AI, data can greatly improve and even transform business activities.

According to a recent study by Wavestone (January 2024), 2023 represented a major transitional year in the progression of data and artificial intelligence usage. The study emphasizes that 18 million gigabytes of data are generated every second worldwide, while AI will soon be able to perform calculations in seconds that would have taken a conventional computer 10,000 years. This opens up numerous new perspectives and the potential to completely revolutionize business. It's no wonder that most companies are heavily investing in their data strategy.

Generative AI is identified in a recent Wavestone study as a major priority for companies, with a growing recognition of its potential to transform operations, product innovation, and customer experience. Increased investment in this field, despite the challenges, reflects a deep conviction in its transformative potential. To navigate successfully in this new era, companies must adopt an integrated strategic vision, valuing data not only as an operational tool but as a fundamental strategic lever for innovation, competitiveness, and sustainable growth. The study already observes a gradual evolution of organizations towards a more mature data management as a business asset. More companies are reporting significant advances in data-driven innovation and competitiveness, suggesting that those overcoming initial challenges can truly reap the rewards of their investments in big data and AI. However, this is not the case for all companies; the majority have not yet fully capitalized on the value that big data and AI can bring.

The transition to more data and AI is far from simple for companies, especially if their activities are distant from them. It is a major transformation that requires a comprehensive approach, integrating technology, people, and processes. Establishing an effective and future-ready data strategy is not an improvisation. Numerous challenges arise in an ambitious project centered around data in businesses and their usage. Even before the questions related to data collection, there is the issue of cultural change within organizations and talent development. These obstacles underline the importance of not only investing in technology but also cultivating an organizational culture that values data as a strategic asset.

The role of the Chief Data Officer (CDO) or Chief Data Analytics Officer (CDAO) is crucial for navigating this transition. The high turnover in these positions suggests that many companies with a data and AI strategy may underestimate the importance of these roles and their support at the highest level. Indeed, the transition to more AI and data management in companies must undoubtedly not be confined to the responsibility of IT personnel; it is a completely strategic evolution that must be driven from the top of the company. The CEO and the management team must be involved and fully support this major evolution. It must also mobilize all teams and personnel. In addition to supporting the responsible individuals (CDO, etc.), the leadership must also ensure the adoption of a data-centric mindset at all levels of the organization. It should promote a culture that encourages experimentation, innovation, and acceptance of failures as an integral part of the learning process. In short, lead by example and do everything to facilitate change.