Middle East Businesses Embrace Chief Data Officers as AI and Data Integration Rise

As Middle Eastern businesses navigate an increasingly data-driven world, the role of the Chief Data Officer (CDO) has become pivotal in integrating artificial intelligence (AI) and managing data across organizations. However, setting up a CDO for success remains a challenge, according to industry experts.

Tom Clarke, a partner at Heidrick & Struggles’ Dubai office, explained that while hiring a CDO is an essential first step, it is their ability to drive transformative change that matters most. “CDOs often face resistance from teams because they need to introduce changes that challenge long-standing norms,” Clarke said. He emphasized the need for executive teams and boards to not only accept but embrace the CDO’s influence as crucial to organizational transformation.

One of the key responsibilities of a CDO is to close the productivity gap in the Middle East, where productivity has grown at a rate of only 0.3% annually over the past 25 years, compared to the global average of 2.3%. By rolling out data-driven technologies, such as generative AI, CDOs can improve workflows and boost business efficiency.

Clarke highlighted that businesses in the Middle East must see data as a strategic asset. He pointed to Abu Dhabi-based G42 Group, which introduced an “AI-powered board member” to analyze large amounts of data and provide real-time insights, enhancing decision-making and risk management.

However, the path to successful data integration and AI implementation is not without obstacles. Clarke noted that misaligned expectations among stakeholders, especially at the board level, can create hurdles. “Boards may not immediately grasp the complexities of a data transformation roadmap, and the pressure for quick results can undermine the CDO’s authority,” Clarke said. He emphasized the importance of educating board members about emerging technologies and setting realistic goals for data initiatives.

To secure organizational buy-in, companies must cultivate a data-driven culture. Clarke stressed that leaders should integrate AI and analytics into decision-making processes and collaborate with CDOs to address employee concerns about job displacement and reduced human influence. “Leaders play a critical role in easing these fears by working iteratively with the CDO,” Clarke said.

As the Middle East seeks to establish itself as a global AI hub, more companies are recognizing the importance of embracing change. A recent HLB Global survey found that nearly half of leaders in the Middle East and Africa are either widely using or eager to adopt AI. However, many organizations still face challenges in data governance and integration, underscoring the vital role of CDOs in unlocking data’s potential.

Clarke concluded that the success of CDOs hinges on their ability to gain organizational support, align with board expectations, and create a culture that embraces data-driven transformation. “For Middle Eastern companies, the key to leading in a data-driven world lies in how boldly they welcome the CDO’s influence,” he said.