Cavalier approach to data holding back adoption of AI

Brand owners might have put data quality, consistency and silos on the back burner for years but this cavalier approach is now coming back to bite them, with the vast majority (76%) of businesses admitting that data-related issues are holding back their adoption of artificial intelligence.

That is according to “The 2024 Data Streaming Report” from Confluent, which quizzed 4,110 tech leaders from 12 different countries, including the UK, the US, Canada, France, Germany, Spain, India, Indonesia, Japan, and Australia.

It reveals that two-thirds (66%) of tech chiefs say inconsistency of data sources is a major issue, followed by 65% citing uncertain quality, and 64% blaming data silos.

And, while data governance is a business imperative for safely scaling and sharing data across the organisation, 60% of respondents highlight governance-related disjoints as another major issue, as well as the fragmented ownership of data within the business and the unwillingness of those departments to share.

The report maintains that getting access to the right data has become even more critical with the rise of AI, especially generative AI, and, as more companies ramp up adoption, additional data challenges are cropping up, including those driven by a lack of in-house AI expertise.

According to the report, 70% of respondents say there are three or more challenges that get in the way when it comes to scaling AI and machine learning initiatives.

Nearly two-thirds (65%) cite a lack of AI-related skills, followed by 64% blaming data lineage and fragmentation, and 63% saying they have insufficient infrastructure for real-time data processing.

One solution, according to Confluent at least, is to adopt a data streaming platform. And, it seems, many of those surveyed for this report agree.

In fact, 51% of tech leaders said that data streaming platforms have helped in enabling their organisations to be nimble and tackle these challenges, while 63% said DSPs have extensively or significantly fuelled AI progress.

This comes in the form of helping them break down data silos (93%), accessesing data that exists (88%) and helping to discover existing data (86%). Finally, 84% maintained that DSPs helped with addressing governance-related disjoints.

Confluent technology strategy group lead Andrew Sellers said: “Tackling data challenges head-on is crucial for maximising business success in a data-driven world. Our findings confirm that data streaming platforms help organisations address many of these pervasive challenges that hinder real-time, data-driven operations.

“DSPs ensure data is available in real-time, everywhere it’s needed, so businesses can focus on accelerating innovation instead of navigating the maze of point-to-point connections.”