Data Masters Surge Ahead: Navigating the Gen AI Revolution
In an era where data is often hailed as the new oil, organisations worldwide are grappling with how to effectively harness this resource to fuel innovation and maintain a competitive edge. Capgemini’s latest report on data-powered enterprises offers valuable insights into this landscape, revealing both significant progress and persistent challenges.
The global business environment has undergone seismic shifts in recent years, with the COVID-19 pandemic accelerating digital transformation and the rise of remote work altering traditional business models. Amidst these changes, the ability to leverage data effectively has become a key differentiator and the advent of generative AI has added a new layer of complexity to an already intricate data ecosystem.
Capgemini’s study, which surveyed 1,000 executives across 500 organisations in 12 countries, found that only 17% of companies surveyed can be classified as ‘data masters’ – those leading in both data foundations and behaviours. While representing a slight improvement from 16% in 2020, this figure highlights the difficulty of achieving true data mastery.
One of the most striking findings is the rapid adoption of generative AI (Gen AI), with 60% of organisations having already implemented pilots or launched early proofs of concept. This swift uptake reflects the technology's potential to revolutionise everything from product development to customer service. However, this enthusiasm is tempered by significant challenges.
Steven Webb, UK Chief Technology & Innovation Officer at Capgemini, notes: “Becoming a data-powered enterprise is increasingly essential in today’s digital landscape. Our latest data-powered enterprises report found that organisations can unlock significant business and financial value from their data.
"However, for a business to become a data-powered enterprise, various measures need to be put in place. Many organisations have made strides in technical foundations like data infrastructure and technical skills, but only 40% feel mature in non-technical areas such as culture, governance and ethical frameworks.”
Data essential to train AI models
This disparity between technical capability and organisational readiness is a recurring theme throughout the report. While nearly two-thirds of executives state their organisations use activated data to introduce new products or services, only 42% of data executives say they currently receive the required data to train AI and Gen AI models.
The financial services sector appears to be leading the charge in data-driven decision making, with 61% of banking and insurance firms reporting data-powered decision making, compared to the cross-industry average of 60%. This is perhaps unsurprising given the sector’s long-standing reliance on data analytics for risk assessment and customer insights.
However, the consumer products industry has shown the most significant improvement since 2020, with 68% now reporting data-driven decision making, up from 43% four years ago. This surge likely reflects the industry's growing focus on personalisation and direct-to-consumer strategies.
The report also sheds light on the mounting importance of sustainable data operations. A striking 83% of business executives say ensuring sustainable data production, storage and usage are key elements of their data strategy.
As organisations grapple with these challenges, the role of leadership in driving data transformation becomes crucial. The report finds that 94% of data masters’ chief data officers report directly to the CEO, compared with 79% of others.
However, leadership alone is not enough. The report emphasises the critical need for upskilling across the workforce. “Around 71% of business executives in the data masters category say they are actively upskilling the workforce for the required skills in generative AI, compared with 56% of others,” Webb points out. “Upskilling allows teams to become their own data masters. This is also linked to a culture of change and collaboration – employees need to be made aware of the importance of data management and be brought along the journey.”
- Only 17% of companies surveyed qualify as ‘data masters’, up slightly from 16% in 2020
- 60% of organisations have implemented pilots or launched early proofs of concept for generative AI initiatives
- 83% of business executives say sustainable data operations are key elements of their data strategy
- 94% of data masters' chief data officers report directly to the CEO, compared with 79% of others
The financial benefits of achieving data mastery are clear. Capgemini’s report found that data masters outperform their peers across multiple financial metrics, showing 28% higher EBIT growth and 42% higher net income growth compared to the average. These figures provide a compelling business case for investment in data capabilities.
Navigating the ethics and regulation landscape
Yet, as organisations strive to become data-powered enterprises, they must navigate an increasingly complex ethical and regulatory landscape. The report highlights that only 56% of data executives feel prepared to deal with potential legal complications arising from data use in AI and Gen AI applications.
As the data landscape continues to evolve at breakneck speed, organisations must balance technical innovation with robust governance and ethical considerations.
In Webb’s words: “To truly harness the power of data, enterprises must focus on both technical and non-technical aspects, fostering a culture that supports data-driven decision-making and ensuring robust governance mechanisms are in place. A holistic, well-rounded approach is best, and is what is required for organisations to become data-powered enterprises.”
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