US businesses are accelerating their AI adoption despite recognizing their underlying data foundations may not be fit for purpose, with over half (54%) of businesses overlooking compliance obligations in order to keep up in the AI race.

The AND Digital Winning the Intelligent Customer report found that AI is becoming embedded in day-to-day operations with many organizations continuing to struggle with fragmented, inaccurate or poorly governed data. A full 63% have agreed that siloed customer data prevents their ability to innovate and is increasingly likely to lead to a data leak or privacy incident.

AI investment is accelerating quicker than data investment, with 72% of businesses directing funding straight into AI tools rather than the underlying infrastructure needed to support. When AI systems are built on weak or incomplete data foundations, they create strategic blind spots and misalignment. Instead of becoming a competitive advantage, AI can quickly shift from an asset to a liability.

As Data Privacy Day approaches on January 28, and amidst the rise of high-profile cyber attacks, the spotlight intensifies on the urgent need for businesses to take control of their data and data skills.

Yet amid the turbulence, there are signs of progress. Real-time data processing has emerged as the top technology investment priority for 85% of businesses. This indicator shows that businesses understand the need to modernize their data infrastructure to support safe, effective and scalable AI.

“Businesses are in the middle of an AI gold rush, but many are rushing the adoption of AI without putting the right data foundations in place,” said Richard Bovey, Chief for Data, AND Digital. “Improving data quality, governance and compliance is essential, but it must be balanced with investment in skills to help employees with the confidence and capability to work effectively with data for AI to be used safely and sustainably to ensure success.”

As Data Privacy Day approaches, businesses should consider taking decisive action to strengthen their privacy frameworks. The key to building trust and accountability goes beyond compliance to investing in training and proactively addressing gaps in data.

About AND Digital

AND Digital is on a mission to close the world’s digital skills gap. Our award-winning approach to talent development makes us the go-to digital partner for some of the world’s most renowned organisations. By working collaboratively, we help you deliver value faster today and strengthen your in-house capabilities for independence tomorrow.

With an ever-growing team of experts, we’re hard at work guiding a diverse range of organisations to digital independence. Our unique model allows us to ‘Guide, Build and Equip’ the likes of British Airways, Nike, Sky, and Subway, giving them the critical skills they need for a successful future.

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