AI ambitions slowed by data security and quality challenges: report

Boomi has released the Australian findings of its ‘Data Liquidity Index Study’, conducted by Hanover Research. The survey found strong data integration capabilities within Australian organisations, but identified gaps in liquidity as companies battle challenges with data privacy/security and data quality/accuracy.

According to the report, 80% of Australian organisations identify data integration as at least a high priority. Currently, 76% of respondents stated their companies are ‘very’ or ‘extremely’ integrated, with the remaining 24% ‘moderately’ integrated.

The top benefits experienced by the Australian contingent from using an integrated platform include: increased operational efficiency (89%), streamlined business processes (73%), and better customer service and experience (73%). Major challenges with integrating data were identified as: managing large volumes of data (43%), handling data security/privacy concerns (39%), and navigating regulatory compliance requirements (32%).

However, while 88% of respondents feel their organisations’ data is at least very interconnected, only 6% completely agree there are no barriers in accessing data within their environments.

“Data integration continues to be a critical pillar for Australian companies; bringing data together, wrapping the appropriate protocols around it, and leveraging it to improve operations and services drive competitive advantage,” said David Irecki, CTO for Asia-Pacific and Japan at Boomi. “Achieving this state is only becoming more important as AI strategies move from early planning to deployment. The right foundation is essential to ensure these complex automated and generative capabilities are introduced compliantly and without risk.”

Converting integration into liquidity

Data liquidity refers to the ability to seamlessly access, combine and analyse data from various sources to extract relevant information and apply it effectively to specific business scenarios. It measures how well an organisation can get the right data to the right place at the right time.

The report found 75% of Australian companies see data liquidity as at least a high current priority. Responsibility for data liquidity is heavily shared across multiple departments, including offices of CTOs, CIOs, CEOs and COOs.

The survey data found that the major roadblocks to liquidity include: managing data privacy/security (56%), ensuring data quality and accuracy (41%), and the cost of data management tools (36%). Interestingly, despite Australia’s ongoing talent shortage, only 18% of respondents stated a lack of skilled personnel in data analytics as a challenge.

Meanwhile, the main safeguards respondents believe need to be in place to achieve data liquidity include: effective data backup and recovery systems (74%), regular data quality and accuracy checks (72%), and strong firewall and anti-malware protection (61%). Only 27% identified incident response plans for potential data breaches as a safeguard, the lowest score alongside robust data encryptions protocols, also at 27%.

“Improving data liquidity is not only integral to deriving value from technology investments, but it also creates a safety net for complex AI projects,” Irecki said. “As an increasing volume of automated and generative tools enter the business, there must be mechanisms to ensure accurate data moves securely throughout an organisation.”

Today, 83% of companies claim to use some form of AI, with 17% in the experimental stage. However, 16% of respondents don’t believe their organisations have the ability to ground AI models with precise, real-time data.

The ‘Data Liquidity Index Study’ surveyed 100 Australian decision-makers across various business functions at organisations with annual revenues of more than US$300 million. Respondents were required to hold high familiarity with their companies’ data solutions and integration capabilities, and authority in the selection and purchase of data platforms.

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