Enhancing Data Literacy for AI Success

Author

Michael Ridland

Category

AI, Data

Date

18 / 07 / 2024

Data literacy – the ability to read, understand, analyse, and interpret data – is the cornerstone of preparing for AI success. It involves extracting insights, making decisions, and creating value from the overwhelming amount of available information. Every stage of an AI application development project, from initial data gathering and preparation to building and refining AI models, interpreting their outputs, and ensuring ethical and regulatory compliance, requires a level of data proficiency. 

ADAPT’s CIO Edge Survey (Feb 2024) reveals that Australian CIOs aim to modernise technology, reduce costs, enhance security, and become data-driven AI-powered organisations within the next 12 months. While investing in technical modernisation and building technical data capabilities is essential, many organisations struggle to capture business value from these investments due to barriers such as low digital savviness and outdated mindsets among senior stakeholders and low digital literacy among employees. These low levels of digital literacy and readiness make it difficult to prioritise key projects based on business value and leverage data to drive change. 

By fostering data literacy among employees of all levels, you can build a strong foundation for AI, enabling informed decisions, leveraging data-driven insights, and fully utilising AI technologies to drive innovation.

Current State of Data Literacy in Australian Businesses

The landscape of data literacy within Australian organisations presents a mixed picture. While there have been advancements, significant gaps and challenges remain that hinder the effective adoption of AI technologies.

Recent data from ADAPT’s Data and AI Edge Survey in 2024 reveals the digital fitness of employees rose from 49% in 2002 to 52% in 2023. However, there was then a sharp decline to 44% in 2024. This downturn suggests that while more employees may understand data concepts better, their overall ability to leverage new technologies effectively in their roles has diminished. This gap hampers their capacity to simplify processes and create value through innovative solutions.

Moreover, the digital savviness of the C-suite has also decreased, falling from 49% in 2023 to 45% in 2024. This decline is particularly concerning as it underscores a disconnect at the highest levels of leadership. Organisations may struggle to prioritise and drive key AI initiatives without a digitally literate executive team, impeding strategic decision-making and innovation.

The Link Between Data Literacy and AI Success

Data literacy and AI readiness are two sides of the same coin. AI relies heavily on high-quality, relevant data, and without the skills to work with data, leveraging AI becomes complex, if not impossible. ADAPT’s Data and AI Edge Survey in 2024 reveals a significant relationship between employee data literacy and confidence in data strategy. The survey finds that organisations with higher data literacy among employees are better positioned to implement AI services successfully. 

Strong data literacy contributes to AI success by enabling effective data collection, analysis, and interpretation, ensuring the use of high-quality data for AI models. It allows decision-makers to assess AI adoption benefits and challenges, consider data resources, and address potential pitfalls like data privacy concerns and biases. Data-literate employees can understand and communicate AI outcomes clearly, building trust and ensuring proper use of AI insights. Additionally, data literacy helps identify opportunities for AI-driven innovation and process optimisation, leading to competitive advantages and operational efficiency.

According to ADAPT’s CIO Edge Survey, organisations that effectively leverage AI gain 30% more revenue from digital channels than those less able to coordinate roadmap decisions decisively. The key to this success is experience and a strong foundation in data literacy. ADAPT’s Data and AI Edge Survey also highlights the attributes of high employee data literacy, such as higher executive data literacy, priority investment in machine learning platforms, and a strong relationship between the chief data analytics officer (CDAO) and their CEO and Board. Organisations confident in their data strategy tend to have higher degrees of data literacy, underscoring the importance of developing these skills to drive AI success.

Strategies for Improving Data Literacy 

Improving data literacy is crucial if you want to leverage AI technologies effectively. Fortunately, there are several strategies you can use to enhance digital fitness and data literacy across your organisation:

  • Evaluate Current Data Proficiency – start by assessing the data proficiency of top leaders and business users through surveys, assessment tools, and KPIs to create a baseline understanding of current capabilities.
  • Tailor Training Programs – design digital literacy programs that map critical digital and data skills across various levels of user maturity. Incorporate training sessions, workshops, and real-time projects to ensure relevance and effectiveness, with a focus on business users.
  • Form Cross-Functional Teams – establish teams comprising leaders from data, the CIO’s office, HR, and business units to foster collaboration and achieve early successes. 
  • Adopt a Digital Championship Model – implement a model where sub-team members act as sponsors for technology changes and are incentivised to build digital awareness. 
  • Re-evaluate Hiring and Talent Retention Practices – foster diversity and inclusivity in hiring practices to attract candidates with strong technical skills and high business acumen. 
  • Enhance Executive Data Literacy – improving the data literacy of the executive leadership team is crucial, as their proficiency correlates with higher data literacy among employees. 
  • Foster Strong Relationships Between Key Roles – strengthen the relationship between the Chief Data Analytics Officer (CDAO), CEO, and Board to promote high data literacy among employees. 

By implementing these strategies, you can significantly improve data literacy, driving AI readiness and fostering a data-driven culture that supports innovation and effective decision-making.

Enhancing Data Literacy Across Your Business

According to the ADAPT CIO Edge Survey 2024, data culture and literacy are the primary factors impacting AI readiness. Organisations with a robust data culture and high levels of data literacy are nine times more likely to be prepared for AI. This is why cultivating a data-driven culture and enhancing data literacy at all levels are essential steps for AI success. Moreover, proactive engagement from executive leadership is crucial in building organisational data literacy and modelling data-centric behaviours.

Promoting a culture that values data and continuous learning ensures that your workforce is equipped to leverage AI effectively. This cultural shift requires a commitment to providing ongoing training and resources to build data skills across your business. Additionally, executive leadership must be actively involved in data and AI initiatives to drive a data-centric culture and align data strategies with your business objectives.

By enhancing data literacy at all levels, championing data-driven decision-making, and providing continuous support and resources, you can build a strong foundation for AI success and drive significant competitive advantage in your industry.