Saturday, February 22, 2025

Survey Reveals That 25% of Organizations Lack a Data Strategy

A recent study by Carruthers and Jackson reveals that 26% of organizations, mainly in the UK and US, lack a formal data strategy, and 39% have minimal data governance in place. Despite this, many are ramping up their use of artificial intelligence (AI).

Data leaders have noticed a shift from generic data governance frameworks to more specialized approaches tailored to different departments. The survey shows that 37% of leaders are now using multiple governance frameworks, up from 31% in 2023. Caroline Carruthers, CEO of Carruthers and Jackson, emphasized the importance of this shift. Customized frameworks ensure that the most valuable data is handled properly. “With a one-size-fits-all approach, you risk neglecting your crown jewels of data,” she said.

Conducted in November 2024, the study gathered insights from nearly 200 data leaders, building on a community nurtured through a summer school for chief data officers since 2018. Despite the growth in AI adoption—down to just 7% of organizations not using it, from 26% a year prior—there are still significant gaps in foundational data practices. Carruthers and Jackson noted that while discussions around data ethics have increased, only 13% of organizations have turned these discussions into formal policies.

Moreover, there’s a worrying discrepancy: 53% of organizations are using AI, yet 57% of employees lack data literacy. Carruthers referred to this situation as an “AI Paradox.” Despite the increased use of AI tools, employees are still struggling to understand and effectively use them. She pointed out the need for scalable training focused on AI.

The rise of AI also demands cleaner data and higher standards. There’s a growing acknowledgment among leaders that flexible, department-specific governance is key to improving data maturity. The landscape is changing as data professionals evolve too. Instead of a single expert, organizations are now relying on specialists in data lineage, governance, and observability.

Andrew Lunt from Carruthers and Jackson expressed concern that nearly 40% of organizations still lack solid data governance. He urged those who haven’t started the journey to think big but start small, as data issues typically require time to resolve.

Ashley Cairns, another consultant at the firm, highlighted a pressing issue. She reported instances where employees mistakenly entered sensitive data into public AI tools, underscoring the need for better training.

Among the voices in the report, David Prime from the Football Association stressed the critical nature of data strategy and governance frameworks. He acknowledged the inherent difficulties in aligning these elements given the complex nature of data and reiterated the importance of tailored solutions instead of generic ones.