Will CDOs Gain C-Suite Influence as Data Investment Grows?

The corporate landscape is witnessing a quiet revolution in the data leadership sphere, with Chief Data Officers (CDOs) poised to claim greater executive influence despite currently operating in the shadow of their C-suite counterparts.

Deloitte's fourth annual CDO survey, spanning nine countries and major industry sectors including financial services, government and public services, reveals a striking disconnect between present reality and future trajectory.

While 54% of CDOs acknowledge feeling less influential than fellow executive stakeholders today, an overwhelming 90% anticipate this dynamic will shift dramatically within five years. The projection suggests 44% expect to achieve parity with other C-suite leaders, whilst 46% anticipate surpassing their current standing.

Investment increase signals changing priorities

Organisations appear to be backing this confidence with substantial financial commitment. The research indicates that 43% of CDOs experienced budget increases over the past 12 months.

More tellingly, 56% identified growth in overall organisational data spending, suggesting investment in data capabilities extends well beyond CDO-controlled allocations.

Andy Whitton, Data, Privacy and Analytics Partner at Deloitte, explains the shift: "While over half of CDOs currently feel less influential than other C-suite leaders, there's a powerful shift on the horizon. This optimism isn't unfounded as we're seeing substantial investment, with just over half (54%) of data teams growing last year and more anticipating further expansion next year."

The human capital investment proves equally substantial. CDOs currently oversee central data teams averaging 76 people with nine direct reports.

Over half (54%) reported team expansion in the past year, whilst 63% anticipate further growth over the next 12 months, projecting an average increase of 27%.

Sector-specific strategies emerge

The survey reveals markedly different strategic priorities across industries, reflecting distinct maturity levels and regulatory environments. Financial services CDOs demonstrate the strongest commitment to emerging technologies, with 66% identifying AI and Gen AI as their primary focus over the coming year.

Corporate sector leadership takes a different approach, with 50% prioritising data products as their top objective. Meanwhile, government and public sector CDOs show overwhelming focus on foundational capabilities, with 70% making data governance their leading priority.

"What stands out in this year's findings is the nuanced approach CDOs are taking to their priorities, tailored to their specific industry needs," Andy notes. "For example, AI and Gen AI 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."

AI champions anticipate accelerated returns

CDOs prioritising AI and Gen AI technologies anticipate considerably faster organisational benefits compared to those focusing elsewhere. Regarding productivity improvements, 51% of AI-focused CDOs expect enhanced productivity within 12 months, compared to 43% among those not prioritising these technologies.

The research shows 64% of CDOs report direct improvement in data initiatives driving AI and analytics adoption over the past year, indicating tangible business outcomes from data investments.

However, obstacles remain. Budget and resource constraints present challenges for 48% of CDOs attempting to drive AI adoption, whilst 47% cite competing organisational priorities as hindering their ability to extract full value from data capabilities.

Influence gap persists despite seniority

Despite 87% of CDOs reporting directly into the C-suite, the perception gap regarding influence continues. The survey suggests that whilst CDOs hold senior positions within organisational hierarchies, they perceive their impact on strategic decisions as less significant than other executive leaders.

Andy says: "Crucially, those CDOs championing AI and Gen AI are anticipating significantly faster benefits, particularly in productivity, highlighting the immediate impact these technologies can deliver.

"Organisations are clearly doubling down on data, rapidly increasing their data maturity and literacy to gain crucial competitive advantage. This is positioning the CDO role as an increasingly influential force across the C-suite, helping to drive sustained growth."