Data security shortcomings hinder enterprise AI implementation
A report jointly released by OpenText and the Ponemon Institute points out that enterprise AI adoption faces challenges in data security and information complexity. Among nearly 1,900 respondents, about three-quarters believe simplifying information management is key to advancing AI, and half of enterprises have appointed or plan to appoint a Chief AI/Digital Officer. The report also finds that AI-related budget constraints and security risks remain major obstacles.
At a Glance
- OpenText releases report saying enterprises face data security obstacles in AI adoption. Cloud and software provider OpenText, in partnership with the Ponemon Institute, surveyed nearly 1,900 CIOs, CISOs, and other IT leaders; the report was published last week.
- Nearly three-quarters of respondents said reducing information complexity is key to advancing AI initiatives. The report found that emerging cyber threats, the proliferation of IoT devices, and rapid growth of unstructured enterprise data are major contributors to data issues.
- The report shows that enterprises are strengthening leadership structures to address complexity. Three-fifths of respondents support appointing a dedicated person for data strategy. Half of surveyed organizations have hired or plan to hire a chief AI or digital officer to fill leadership gaps.
Deep Dive
Many organizations are progressing slowly in deploying generative AI capabilities due to scattered and disorganized data assets. Despite continued technology investments by vendors, enterprises are hitting the brakes due to security risks, wasted funds, and a shortage of technical talent.
Gartner Distinguished VP Analyst John-David Lovelock told CIO Dive in March that enterprise data is not meeting the AI challenge. The firm expects a surge in vendor investments to drive a 76% increase in generative AI spending this year.
Pluralsight Chief Product and Technology Officer Chris McClellen noted that AI pilot phases have exposed a significant gap between enterprise ambitions and data readiness. The IT training company reported in March that more than half of organizations lack sufficient data maturity to meet AI's technical and operational demands.
Nearly six months later, the situation has not improved significantly.
In the Ponemon Institute survey, more than half of respondents said AI remains a high priority for their organizations compared to other IT initiatives. However, nearly one-third of tech and IT security leaders noted constrained AI-related budgets.
"AI is mission-critical, but most organizations are not yet ready to support it," said Shannon Bell, Chief Digital Officer at OpenText, in a statement accompanying the report. "Without trusted and well-governed information, AI cannot deliver on its promise."
AI technology is a double-edged sword for network and risk management leaders.
The Ponemon Institute found that more than half of organizations are struggling to mitigate AI's security and legal risks. Over a quarter of respondents believe the issue partly stems from a lack of alignment between enterprise AI strategy and IT and security functions.
Despite this, half of respondents said they already use AI for security strategies, and 39% believe generative AI shows particular potential in supporting security operations, including alert analysis.
Banking is one industry where generative AI is improving anomaly detection. A KPMG survey of 200 executives in April showed that one-third of banks are piloting fraud detection use cases powered by generative AI.