Data readiness identified as major hurdle to AI adoption

Fivetran, a global expert in data movement, in collaboration with MIT Technology Review Insights, has unveiled a new report that identifies significant barriers to AI adoption, notably data readiness. The study surveyed 300 C-suite executives and senior technology leaders from 11 diverse industries, such as financial services, manufacturing, retail, healthcare, and government. More than half of the participating organisations reported annual revenues of $1 billion or more.

According to the report, 82% of global respondents consider the scaling of AI or generative AI as a top organisational priority. However, 60% acknowledge that they need to address issues related to data governance, trust, and security before they can fully achieve their AI goals. Data integration and the development of effective data pipelines emerged as significant challenges, with 45% of the respondents highlighting these aspects as their primary obstacles.

TJ Chandler, Fivetran's APAC Managing Director, remarked that accessibility to data remains a considerable hurdle for AI readiness, particularly in Australia. "Availability and access to data remains a sticking point for AI readiness in Australia in part because data is not well governed, nor in a location where it can be effectively used. We see businesses trying to reach for AI, but they do not have access to the data that they need," said Chandler. He also noted that a comprehensive data strategy that includes data acquisition, movement, storage, and governance is crucial for success.

The report outlines several key statistics that shed light on the current landscape of AI adoption. Among the respondents, 83% reported that their organisations have identified numerous data sources that need to be integrated for AI initiatives to proceed. Additionally, 64% of executives emphasised data integration as a critical investment area for AI.

George Fraser, CEO of Fivetran, reinforced the significance of data integration as a strategic imperative. "Data integration isn't just a technical challenge; it's a strategic imperative that underpins all successful AI initiatives," said Fraser. "This report validates our mission to empower organisations with data movement capabilities that are not only efficient but also scalable and secure. As AI technologies continue to evolve, the ability to integrate and manage data effectively will distinguish industry leaders from the rest."

Security and data governance surfaced as primary concerns, particularly in highly regulated industries, underscoring the need for secure and compliant data practices at the inception of AI projects. The comprehensive nature of data strategies, which includes secure access to all data sources and the capability to share and combine data from diverse origins such as SaaS applications, legacy databases, and custom applications, is deemed essential for leveraging AI and generative AI technologies effectively.