Weak Enterprise Data Foundations Lead to Frequent Decision-Making Failures
SoftServe commissioned Wakefield Research to survey 750 business leaders and found that about two-thirds of decision-makers believe no one in their organization truly understands the data collected, and nearly 60% admit that key decisions are based on inaccurate or inconsistent data. Nearly 75% of leaders attribute the problem to improper prioritization and resource allocation, especially over-investing in generative AI while neglecting data and analytics. Industry cases show that companies such as USAA and American Honda are strengthening their data foundations to support AI applications, but many enterprises remain stuck in the pilot phase with delayed returns on investment.
Key Takeaways
- Enterprises are suffering from weak data foundations, according to a report released last week by software services firm SoftServe. The company commissioned Wakefield Research to survey 750 business leaders.
- About two-thirds of decision-makers believe no one in their organization truly understands the data collected or knows how to access it. Nearly three-fifths of business leaders say major decisions are based on inaccurate or inconsistent data.
- Nearly 75% of leaders blame misaligned priorities and resource allocation, noting that companies are sacrificing data and analytics initiatives while investing in generative AI.
Deep Dive
Regardless of industry, AI success heavily depends on how data is handled. USAA, after spending three years cleaning up its vast data assets, shifted to deploying AI-based solutions last year, Chief Data and Analytics Officer Ramnik Bajaj told CIO Dive. American Honda also emphasized at CIO Dive's online event last year that data is the enabler of generative AI and central to broader IT strategy.
Moving forward without the right foundation can lead to wasted resources. Organizations admit they are stuck in pilot phases due to lagging returns on investment and unreliable tools. Data challenges often derail AI projects, according to a report released by Lenovo earlier this month.
Despite the challenging technology environment, companies continue to push forward and increase AI-related investments. According to Informatica's report, about nine in ten leaders are concerned that generative AI pilots are advancing without addressing issues found in previous initiatives. Nearly three-fifths of respondents say they face pressure to accelerate project timelines.
As companies seek to integrate AI agents into their tech stacks this year, strengthening data governance and processes becomes especially critical. CIOs know that without a solid data foundation, enterprises cannot achieve their AI ambitions, so many technology leaders are prioritizing data skills enhancement as part of reskilling programs.