Randy Bean, Innovation Fellow, Data Strategy, Wavestone, discusses the findings of the Data and AI Leadership Executive Survey. Topics include generative AI, its impact on organizations in 2024, the state of generative AI implementation, healthcare and AI, and the importance of data quality for AI capabilities.
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Quick takeaways
Generative AI has become a top organizational priority, seen as a transformative technology with potential productivity gains.
While there is significant interest in generative AI, organizations face challenges in scaling up implementation and need to prioritize data and AI ethics.
Deep dives
Generative AI is Transforming the Discussion Around Data Analytics
Generative AI has become a central focus in the data and AI leadership executive survey, elevating the urgency and importance of data analytics within organizations. The survey reveals that two-thirds of respondents consider generative AI as a top organizational priority. It is seen as a transformative technology with the potential to bring exponential productivity gains. Over 99% of organizations recognize the need for safeguards and governance in governing generative AI. However, only around 63% have put safeguards and guardrails in place, indicating the need for more proactive measures to govern AI responsibly.
Progress and Challenges in Generative AI Implementation
The survey shows that many organizations are in the experimentation and testing stage of generative AI implementation, while a smaller portion have implemented it in limited production. Less than 5% of organizations have implemented generative AI in production at scale. This indicates that while there is significant interest and investment in generative AI, there are still challenges to overcome in terms of scaling up implementation. However, success stories from organizations like Ally Financial demonstrate the potential of generative AI in improving productivity and efficiency in tasks such as customer service.
Business Opportunities and Risks of Generative AI
Among the primary business opportunities created by generative AI, organizations focus on achieving exponential productivity gains, liberating knowledge workers from mundane tasks, and improving customer service and experience. However, organizations also recognize the risks associated with generative AI. The survey highlights concerns about the spread of misinformation or disinformation, ethical biases, and potential job loss. It is crucial for organizations to prioritize data and AI ethics, with more work needed to establish policies and practices to address these concerns.
Cultural and Organizational Challenges in Becoming Data-Driven
Despite the growing recognition of the importance of data and analytics, organizations continue to face challenges in becoming data-driven. Cultural factors, people, change management, and communication are identified as the principal barriers rather than technology limitations. Building strong partnerships and trust between data leaders, such as chief data officers, and business leaders is crucial for success. Organizations must focus on creating a data-driven culture, improving data quality, and promoting data literacy to drive the adoption and integration of data and analytics capabilities.
We learned so much about generative AI and its impact for people and organizations in 2023, we must anticipate many more innovations in the data and AI space 2024. One of the best places to look for this information is through the wisdom of those that spend their time with the Fortune 1000 leaders that are helping shape data and AI practices. Wavestone’s annual Data and AI Executive Leadership Survey is a great way to gain insight into thoughts in current practices, as well as understand what to expect from business leaders and organizations in the near future. In this episode, we speak to the author of the survey.
Randy Bean is a start-up business founder, CEO, industry thought leader, author, and speaker in the field of data-driven business leadership. He serves as Innovation Fellow, Data Strategy for Paris-based consultancy Wavestone. Randy is the creator of the Data and AI Leadership Executive Survey discussed in today's episode. He is the author of the bestselling "Fail Fast, Learn Faster: Lessons in Data-Driven Leadership in an Age of Disruption, Big Data, and AI", and a current contributor to Forbes, Harvard Business Review, and MIT Sloan Management Review.
In the episode, Richie and Randy explore the 2024 Data and AI Leadership Executive Survey, the impact of generative AI in 2023 and what to expect from it in 2024, the state of generative AI implementation in organizations, healthcare and AI, including examples of generative AI outperforming human doctors, the evolving responsibilities of CDOs, the increasing importance of data-driven decision-making in organizations, the barriers to becoming data-driven, insights on data skills and the generational shift towards more data-savvy business leaders, as well as much more.