In today’s data-driven world, Middle East businesses are inundated with an ever-increasing flood of information, and artificial intelligence (AI) has become deeply embedded in the internal operations of nearly all organisations. Externally, companies are grappling with the demands of a more privacy-conscious consumer base—40 per cent of Middle East consumers are hesitant to share personal data on social media and websites—which underscores the necessity of effective data access and management. Fortunately, executive teams have increasingly recognised and accepted the importance of appointing a Chief Data Officer (CDO) in recent years. However, hiring a CDO is just the beginning; the real challenge lies in setting up the CO for success.
“Often, the introduction of a CDO faces resistance from teams—for CDOs to make an impact, they must instigate a degree of change in long-standing norms and practices. While this is natural, established leaders and teams may view the CDO’s new ideas as intrusive rather than beneficial, leading to resistance to change,” explained Tom Clarke, a partner at Heidrick & Struggles’ Dubai office. For a CDO to flourish, executive teams and boards must not only tolerate but embrace this intrusion as a catalyst for transformation.
“A CDO with the authority to influence operations can identify outdated practices within the business and prepare the organisation for the future. For instance, productivity. Research has shown that emerging economies, including the Middle East, have seen productivity grow at a rate of only 0.3 per cent annually over 25 years, compared to the global rate of 2.3 per cent. Closing this productivity gap will be a key mandate for Middle East CDOs to help their organisations become more resilient. A successful CDO would identify opportunities to deploy data-driven technologies like generative AI across the organisation, integrating them into daily workflows,” said Clarke, who is also a partner in the global Technology & Services, Technology Officers, and Digital Officers practices.
To embrace this intrusion, companies must recognise that data is not merely a byproduct of their operations but a strategic asset for competitive advantage. “Some boards in the Middle East already grasp this—for example, Abu Dhabi-based AI company G42 Group introduced an ‘AI-powered board member’ to analyse decades’ worth of business data, financial information, market trends, and global economic indicators. This AI counterpart enhanced decision-making with real-time insights, contributing to efficient resource management and advanced risk management,” Clarke noted.
One common pitfall in embracing intrusion is failing to align expectations across different stakeholders, particularly at the board level. Depending on their experience and expertise, board members may not fully comprehend a data transformation roadmap or have differing notions of what success entails. Adding to the challenge is the pressure on the CDO function to deliver results swiftly. A company without the right data infrastructure, for instance, will not achieve quick wins—which ironically undermines the CDO’s authority and ability to effect further change.
“Challenges like these often arise from a translation gap, where complex technology models are not explained in a language board members understand. While CDOs need to possess skills like stakeholder management, boards must also educate themselves on emerging technologies. This mutual effort enables both sides to engage in meaningful discussions, aligning on the company’s transformation roadmap and setting realistic goals for both the short and long term. Overall, board-level engagement with and support for the CDO’s activities are crucial to their success and to ensure they have the necessary resources—and runway—to be intrusive,” Clarke said.
Securing organisational buy-in is another critical step. Redefining organisational culture to support the CDO is essential. Organisations must cultivate a data-driven culture from the ground up, which requires sustained commitment from leadership across departments, Clarke emphasised. “Leaders need to lead by example, incorporating analytics and AI into business processes and decision-making. They also play a crucial role in communicating employee concerns to the CDO, especially when new initiatives disrupt established practices. Fears of job displacement or reduced human influence often stem from a lack of understanding. To alleviate these concerns, leaders should collaborate with the CDO to implement changes iteratively, using feedback to address employee concerns,” he added.
Adopting an inclusive approach to transformation, where feedback is not only welcomed but actively sought, will ensure that initiatives resonate throughout the organisation. Heidrick & Struggles research has found that companies that encourage input from all levels are six times more likely to be innovative and agile, and eight times more likely to achieve their business objectives.
As the Middle East aims to become an AI hub, an increasing number of organisations view change as essential. A HLB Global survey found that nearly half of Middle East and Africa leaders are already either widely using or eager to adopt AI to build a competitive advantage for their organisations. However, many exploring AI have reported difficulties with data, whether it’s defining processes for data governance or integrating data quickly into AI models. This underscores the critical role of data in capturing value—and the importance of a CDO in unlocking data’s potential.
“Perhaps the key to success in the age of AI lies in a methodical approach to welcoming change—or in this case, intrusion. Even the most highly qualified CDO needs a runway for success, starting with companies welcoming the CDO’s influence, aligning expectations at the board level, and securing organisation-wide buy-in. For Middle Eastern organisations, the difference between merely staying afloat and leading the charge in a data-driven world hinges on how boldly companies invite intrusion to the table,” Clarke concluded.
