Good morning. AI feeds on data, but that data must be robust and reliable. For companies, managing this process effectively isn’t easy. But it can help to build a strong data culture—getting everyone on the same page when it comes to using data responsibly, including in a way that protects privacy.
During the Fortune Brainstorm AI Singapore conference on Tuesday, experts shared their insights on the topic. Geraldine Wong is the group chief data officer of GXS Bank, a Singapore-based digital bank, launched in August 2022. She played a pivotal role in building the data culture. Wong found that employees joining the company needed guidance in that area.
“Being able to assess their level of maturity was very important for us,” she said during a panel session. Wong created an operating model to answer questions such as: What does the data team actually do? What are some of the use cases that we have seen in the past being adopted? How can it help you? What does data responsibility mean? How do we approach governance?
The company implemented data visualization software tools for employees to have hands-on experience. What Wong discovered in the process is that employees “have trust in the data that they see,” she said. “Expanding it into a dashboard and visualization is what helps the users create use cases,” Wong said.
Panelist Satyen Sangani is the cofounder and CEO of Alation, a data intelligence platform provider, based in Redwood City, Calif. Culture is effectively a set of habits and behaviors that exist within any organization, and incentives can be helpful, Sangani said. “You really want to build in immediate rewards,” he said. The best companies tie their outcomes to value very quickly, he added. “The work that they do is often very clearly measurable and outcome-oriented, and the stories are very quickly socialized,” he explained.
Another aspect of building a robust data culture is tying it to the most important problems of the business, Sangani said. “It’s the ones that executives care about the most,” he said. “And often we find that data teams forget about this. They just work on the data problems that are most interesting.”
CFOs are working toward using AI for data-driven decisions as part of long-term strategies and exploring how generative AI can create value. There are a lot of companies considering the use of gen AI tools just for specific tasks, Wong said. However, she predicts the use of the technology will eventually expand to transform the entire workflow process across an organization.
“We’re so early in terms of understanding what use cases are appropriate, how these models can be used, how to tune them appropriately, what the right prompts are,” Sangani said. “There’s a lot to do, and I think, just tons of excitement in front of us.”
Sheryl Estrada
sheryl.estrada@fortune.com
Quick note: You’ll be hearing from my Fortune colleagues over the next few days in CFO Daily. Take care.
The following sections of CFO Daily were curated by Greg McKenna.
Leaderboard
Ginger Smith was promoted to interim CEO of Alpine 4 Holdings (NasdaqCM:ALPP), a North American industrial conglomerate. She will succeed Christopher Meinerz, who notified the company he intends to resign on or before Aug. 30. Smith, currently the company’s corporate controller, has over 35 years of accounting and management experience.
Peter Hurter was reappointed to the board as group CFO of Crimson Tide (AIM: TIDE), a software services provider in the U.K., U.S., and Ireland, effective immediately. He succeeds Shaun Mullen, who stepped down from the board and will remain with the group until Aug. 31. Hurter previously served as group CFO from 2018 to 2023 and has been the company’s COO in a non-board capacity since June.
Big Deal
Only 42% of companies are yet to see significant benefits from generative AI initiatives, according to Lucidworks’ Generative AI Global Benchmark Study, which polled 2,500 leaders involved in AI decision-making around the world. Close to 50% of those in financial services had a positive view of AI in 2023, but delayed deployment and low success rates have been commonplace.
Funding for generative AI may be more deliberate in 2024, with 70% of leaders in financial services saying they planned to increase spending in that category, down from 94% last year. Across all industries surveyed, only one in four planned AI projects have been fully implemented.
“Financial services leaders have recognized the immense potential of generative AI year over year,” Lucidworks CEO Mike Sinoway said in a statement. “However, concerns around data security and accuracy are holding back deployment. A responsible AI-powered search solution must balance personalization with stringent data protection, adhering to regulations and prioritizing client trust.”
Going deeper
Families are going deal hunting as they continue to face a cost-of-living squeeze, according to Deloitte’s 17th annual back-to-school survey. The survey polled 1,200 parents of children grades K to 12, 73% of whom were concerned about rising prices for everyday purchases. Back-to-school shopping remains a $31.3 billion market, but Deloitte said retailers should be wary that half of those surveyed said they would shop for private labels over name brands.
Overheard
“Our results show the progress we are making in executing our strategy and the benefit of our diversity business model.”
— Citi CEO Jane Fraser said in a statement accompanying a recent investor note as the bank’s stock has beaten its price target from J.P. Morgan by 20%, Fortune reported.