As UK businesses race to adopt AI, nearly half (47%) of data leaders admit their organisation’s cavalier approach to the rapidly emerging technology could lead to inevitable data leaks or privacy breaches, offering a stark warning from new research from AND Digital.

The findings from the AND Digital ‘Know Me or Lose Me’ report, which polled 250 C-suite and data leaders from enterprise businesses, expose deep cracks in the foundations of business data strategies with over half (52%) describing their organisation’s data processes as utter ‘chaos’, and a further 48% admitting they have no formal data governance in place.

Yet rather than fixing the foundations, many business leaders are opting to build on it, with 60% of business leaders admitting their organisations prioritising AI investment over fixing broken data infrastructure. Without proper oversight, many businesses are laying shaky foundations for their AI ambitions, prioritising speed over security and risking long-term customer trust.

The urgency of embracing AI has meant organisations knowingly are neglecting compliance obligations, with almost of half (49%) of businesses admitting this.

As AI widens the competitive divide, 64% agree the loyalty gap is growing, fuelled by unequal access to data and advanced analytics. Real-time insights are now seen as essential for staying competitive and improving real-time data processing has emerged as a top tech priority for many organisations.

With customer expectations around data protection and personalisation evolving, businesses continue to struggle with siloed data and fragmented systems. Leaders are becoming overwhelmed with the disconnect of customers and data with 67% seeing this as the biggest obstacle to innovation.

Despite these challenges, one thing is clear: Data is the bedrock of AI and customer experience, with 71% agreeing it’s the single most important factor in delivering personal, timely and relevant customer service.

Richard Bovey, Chief for Data from AND Digital commented: ” Winning customer loyalty starts with one thing: clean, connected, and well-governed data. Yet nearly half of organisations are flying blind, lacking even basic data governance structures or clear processes.
That’s not just inefficient, it’s dangerous, as without a solid data foundation, businesses risk eroding customer trust and losing the very engagement they’re trying to build.”

He added: “Everyone wants to jump on the AI bandwagon, but racing ahead without securing data integrity or ethical sourcing is a shortcut to disaster.
Data governance shouldn’t be an afterthought in the rush to modernise, it should be the blueprint and businesses must take an innovation AND customer approach to unlock better experiences, stronger loyalty and long-term success.”