Title: Forecasting the Future of Data and Analytics in 2025: Eight Prophecies
Malcolm Hawker, currently serving as the Chief Data Officer (CDO) at Profisee, excels in the realms of Data Strategy, Master Data Management, and Data Governance. As we step into a new year, it's time to make predictions about the data world in 2025.
After a tumultuous 2024, marked by high prices, global uncertainties, and AI-driven disruptions, what might we expect from 2025 in the field of data and analytics?
The Wane of CDOs
This upcoming year, we anticipate a decrease in the number of CDOs in private-sector companies. This decline is due to an ongoing failure of many CDOs to operationalize AI, as highlighted in a recent Wavestone survey, with only 4.7% of companies having a GenAI-based solution in production.
As a result, many CDO functions will transition under Chief Technology Officers (CTOs). Many CDOs will struggle to maintain their grip on governance responsibilities, affecting corporate AI adoption to some extent. However, this will not completely halt the increase in off-the-shelf Language Learning Model (LLM) adoption.
The Data Catalog Excitement
The hype around data catalogs will reach fever pitch in 2025, particularly after Ole Olesen-Bagneux publishes his book on the "meta grid," followed by his keynote speech at Data Day Texas. This development could lead to increased discussions about bridging the gap between structured and unstructured data and the role of a "next-gen" data catalog in facilitating this connection.
Semantics, RAGs, and Knowledge Management
In 2025, we will observe an emerging awareness of knowledge management practices in traditional data management. This new focus will stem from the growth of complex retrieval-augmented generation (RAG) patterns, wherein insights stored as knowledge become more actionable for LLMs than insights stored as data.
RAG patterns are popular due to the drastic improvements they bring to LLM accuracy. For instance, a study by Juan Sequeda, Dean Allemang, and Bryon Jacob demonstrated that Graph RAG increased GenAI accuracy for "text to SQL" queries from 16% to 54%. As a result, 60% of LLM applications in enterprises now leverage RAG patterns.
The AI Potential for Data Management Paradox
While many CDOs struggle to operationalize GenAI, a growing number will simultaneously recognize that AI is increasingly necessary for managing their data estates at scale. This realization of AI's importance in data management was a prominent topic discussed at the 2024 Gartner Data and Analytics Summit.
Moreover, there will be a growing emphasis on using AI to structure unstructured data, enabling it to be better managed and eventually leveraged by LLMs. The paradox of utilizing AI to automate data management for improved consumption by AI solutions will be embraced by more organizations.
Data Products' Descend
Data products continued their ascent to the top of the Gartner hype cycle in 2024, which means their trajectory for 2025 is clear: downward. The decline in data product initiatives is due to their heavy internal focus, which often fails to provide substantial business value.
The Momentum of Data Fabrics
Data fabrics will continue to grow in popularity in 2025, bolstered by ongoing investments and a persistent emphasis on data management from Microsoft. As in the past, competing products may launch in 2025, further fueling the momentum of data fabrics.
AI Governance Complexity
AI governance will remain a buzzword in 2025, with conferences filled with discussions of AI governance frameworks, but a lack of clear information on implementation. Despite this, there will be no shortage of individuals and companies trying to sell their frameworks to you.
Sustainability in Data
The focus on sustainability in data will continue to grow in Europe, driven in part by the introduction of digital product passports and evolving ESG policies. However, this concern will largely be ignored in the U.S. and Canada, where the increasing energy consumption within data centers is primarily influenced by rampant data hoarding and an increased emphasis on AI.
In conclusion, if you wish to remain ahead of these rapidly evolving trends, consider the following actions in 2025:
- Commit to quantifying the business value of your services and exploring opportunities to drive value using a GenAI-based solution.
- Familiarize yourself with the concept of knowledge management and explore how it differs from traditional data management.
- Investigate complex RAG patterns and learn how to implement them using widely available tools like LangChain and Hugging Face.
- Explore the benefits of integrating GenAI into your data management processes to boost efficiency and lower costs.
2025 promises to be an exciting year for data leaders, presenting ample opportunities to become invaluable contributors to their organizations.
In light of the challenges faced by some CDOs in operationalizing AI, Malcolm Hawker's expertise in Data Strategy and Data Governance could be invaluable in navigating these issues and ensuring successful integration of AI into data management processes.
The publication of Ole Olesen-Bagneux's book on the "meta grid" and his keynote speech at Data Day Texas is expected to further fuel the excitement around data catalogs, a development that could greatly benefit from Hawker's experience in Master Data Management.
