But does my firm need a CDO?

In some cases, CTOs and lower ranked data science officers may suffice to drive data strategy for asset managers. The size of the firm is certainly a determining factor. If a firm is over $100 billion, it likely needs some form of CDO. There are so many moving parts and transactions occurring on a day-to-day basis, each of which carry security details, transaction details, and accounting details. But perhaps more relevant than sheer AUM is the degree of complexity of a firm’s strategies. Those executing multi-asset strategies or expanding into multiple business lines within the firm may be better off hiring a CDO to oversee everything. The public-private asset class convergence is a widespread puzzle that is driving the need to have real-time, precise viewability, both in full portfolio views at the asset manager level and in portfolio composition at the client level. Complexity is the most pertinent lever for deciding whether to hire a CDO.

AI is redefining the CDO’s mandate

In the context of implementing AI transformation in investment management, the tech and domain expertise of the data person such as a CDO is necessary to match the data agenda with AI/agentic use cases. That's another big reason why a chief data officer is coming into play. AI needs to sit on top of a curated dataset, so it's not just the raw data that's coming in. The data is cleaned up, normalized, and formatted so the AI engine or LLM can read it, and business users can query that data set in a simple way.

Crucially, AI models are not a "one and done" initiative but require continuous retraining and refining from data scientists. The CDO can be a logical choice to pilot the AI ship, which is why many chief data and AI officer positions are emerging. Prominent financial services firms like AIG, Raymond James, and UBS have recently tapped data science leaders to lead their AI charges.^vi

Indeed, the roles of the CDO, CDAO, chief AI officers are evolving. In the same 2025 survey referenced above, nearly 48% of CDOs, chief AI officers, and people with similar jobs surveyed say the CDO role is successful and well established, another 48% believe the position is nascent, evolving, and often a revolving door. Meanwhile, 29% believe the CDO role is a transitional one that will eventually disappear.

The CDO role is here to stay, especially in finance. Financial structure and instrument innovations are coming rapidly and there is no finish line for digital transformation. The explosion of AI and digital transformation has made data a strategic asset; so naturally, the chief data officer has become a strategic asset in the room with the executive leadership team.