Both private and public sector organisations are doubling down on their data strategy, building larger teams and rapidly increasing their data maturity and literacy to gain crucial competitive advantage.
That is the standout conclusion of Deloitte’s fourth annual CDO report which reveals an industry in rude health, with most data chiefs expecting to gain greater strategic power within the C-suite as organisations continue to invest heavily in data and AI capabilities.
Even so, CDOs are not resting on the laurels; establishing strong data foundations is still crucial, with 51% viewing data governance as the top priority for the year ahead.
The reports also shows that those CDOs in organisations with higher perceived maturity are prioritising AI/GenAI (67%) and the development of data products (56%) to exploit cutting-edge technologies and create tangible, value-driven offerings from their data, whereas those in organisations with lower perceived maturity are focusing on data governance (63%) and data strategy (41%).
In line with this, the demand for data-related expertise continues to rise, with 54% of CDOs reporting an increase in the size of their teams over the past year, and even more (63%) anticipating further growth over the next 12 months.
When it comes to funding, the survey reveals variation in how CDO budgets have changed over the past year, with the largest proportion stating that their budgets have remained the same. Despite this, 56% of respondents indicated that overall data spend across their organisations has increased.
The survey also sheds light on the influence of the CDO within the wider leadership structure. While 87% of CDOs report directly into the C-suite, more than half, at 54%, believe they are currently less influential than other C-suite stakeholders.
Despite this perception, many expect their influence to grow, with respondents anticipating a shift towards greater parity or increased influence over the next five years.
In terms of outcomes, the report points to tangible business impact driven by CDO-led initiatives. Around 64% of respondents reported a direct improvement in the effectiveness of data initiatives in supporting the use of AI and analytics over the past 12 months.
However, the are still plenty of roadblocks affecting CDOs’ performance, with nearly half (47%) citing competing organisational priorities, while a similar proportion (48%) identified budget and resource constraints as key obstacles to driving AI adoption.
Deloitte data, privacy and analytics partner Andy Whitton, who is author of the report, said: “What stands out in this year’s findings is the nuanced approach CDOs are taking to their priorities, tailored to their specific industry needs. For example, AI and GenAI are top of the agenda for 66% of financial services CDOs, whereas corporates are homing in on data products, and the public sector is rightly prioritising data governance.
“Crucially, those CDOs championing AI and GenAI are anticipating significantly faster benefits, particularly in productivity, highlighting the immediate impact these technologies can deliver.
“While over half of CDOs currently feel less influential than other C-suite leaders, there’s a powerful shift on the horizon. A remarkable 90% of CDOs expect to be equally or more influential within five years. This optimism isn’t unfounded as we’re seeing significant investment, with just over half (54%) of data teams growing last year and more anticipating further expansion next year.
“This is positioning the CDO role as a pivotal and increasingly influential force across the C-suite, helping to drive sustained growth.”
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