The first step an organization must take towards developing an AI-based application is to develop a

data strategy. The correct answer is option D. Here’s an in-depth explanation:

Importance of Data: Data is the foundation of any AI system. Without a well-defined data strategy, AI

initiatives are likely to fail because the model's performance heavily depends on the quality and

quantity of data.

Components of a Data Strategy: A comprehensive data strategy includes data collection, storage,

management, and ensuring data quality. It also involves establishing data governance policies to

maintain data integrity and security.

Alignment with Business Goals: The data strategy should align with the organization's business goals

to ensure that the AI applications developed are relevant and add value.

Reference:

Davenport,

T. H., & Ronanki,

R. (2018). Artificial intelligence for the real world. Harvard Business

Review, 96(1), 108-116.

Marr, B. (2017). Data Strategy: How to Profit from a World of Big Data, Analytics and the Internet of

Things. Kogan Page Publishers.