According to research published by data management consultancy Carruthers and Jackson, 26% of organisations, mostly in the UK and US, lack a formal data strategy, and 39% have little or nothing in the way of data governance frameworks, but are increasing their use of artificial intelligence (AI) regardless.
Nevertheless, data leaders surveyed in the consultancy’s third Data Maturity Index study are testifying to an evolution from “one-size-fits-all” data governance frameworks to ones that are more tailored to departments in their organisations.
The survey found 37% of data leaders reporting the adoption of multiple governance frameworks, a rise from 31% in 2023.
Carruthers and Jackson co-founder and chief executive Caroline Carruthers said in a briefing with Computer Weekly: “That is important because that way we can have more confidence that the right data is being looked after in the right way. With one-size-fits-all you tend to come down to the lowest common denominator, which means you’re not treating your crown jewels of data in a way that gives it the respect it deserves.”
The study was carried out in November 2024 among almost 200 data leaders, drawn from the community the consultants have developed through the chief data officer (CDO) summer school Carruthers and her colleague Peter Jackson have been running since 2018. Carruthers confirmed she interviewed 10 of the CDOs separate to the survey.
The annual poll of hundreds of global data leaders reveals that over a quarter (26%) of organisations still operate without a formal data strategy, and 39% report little or no governance framework.
In a statement accompanying the report, Carruthers and Jackson said the study points to “persistent gaps in foundational data management practices. The rapid adoption of AI is further complicating the data landscape, as in just 12 months, the share of organisations not using AI has plummeted by 20%. Today, just 7% of organisations now report no AI usage, a significant drop from 26% last year.”
Carruthers said a positive benefit of the increasing prominence of AI in organisations is that it has brought to the fore ethical considerations connected with data use. But, the consultancy said although 44% of organisations have seen a moderate rise in ethical discussions around AI, only 13% have formalised these conversations into structured policies. Simultaneously, it said while 53% of organisations report an increase in AI usage, more than half (57%) admit that most employees still lack data literacy.
Carruthers commented: “An AI Paradox has been created, as the use of AI tools in organisations has surged in the last year, yet employees lack the data literacy to use them effectively, as their fundamental understanding of data remains largely unchanged from last year. Overcoming this requires tailored, scalable training and AI-focused upskilling.
Caroline Carruthers, Carruthers and Jackson
“Simultaneously, the adoption of AI means data needs to be cleaner, and teams need to raise their data standards, otherwise the transformative benefits of new technology simply won’t be realised. Encouragingly, more leaders are recognising the need for flexible, department-specific governance to drive data maturity.
“We are seeing the data landscape begin to evolve, as data leaders are grappling with greater complexity and a deeper appreciation of the requirement for taking a tailored approach to data management. We’re also seeing the role of data leader develop too – rather than having a CDO who knows everything, we’re seeing the emergence of data lineage experts, data governance experts, data observability specialists and so on.”
In the report, Andrew Lunt, data management director at Carruthers and Jackson, is quoted as saying: “It’s still worrying to see that almost 40% of organisations have little to no data governance in place. I think my message to the ones that haven’t embarked on this journey yet is think big but start small. In most cases, problems with your data can’t be solved overnight. We’ve helped organisations to understand how to approach data governance at high level in a few hours and then helped them start small and build up to something very capable.”
In terms of AI, another consultant at the firm, Ashley Cairns, reported: “We’ve already worked with a number of clients where employees have inadvertently put customer or company data into public AI tools without knowing this was even possible. There has to be more training around AI tools to avoid this situation.”
Among the CDOs quoted in the report is David Prime, head of strategy, data and insights at the Football Association. He said: “Data strategy and governance fameworks are critical elements of a high-performing data capability. However, the results of this report are no surprise to me, the high-profile and matrixed nature of data make aligning on these key elements difficult. It is critical to not adopt a one-size-fits-all approach and find solutions that fit the specific opportunities and challenges of your organisation.”