Data management and data quality is getting more investment from enterprises because it's the biggest risk factor in moving generative AI to production, according to a Deloitte survey.
Deloitte’s State of Generative AI in the Enterprise report for the third quarter found that data quality is the biggest risk to generative AI projects, according to a survey of 2,770 director-level to CxO respondents.
According to Deloitte, 75% of organizations are increasing their technology investments around data management. Data related issues also caused 55% of survey respondents to avoid certain genAI use cases. "Most organizations do not have enough data to get to a level of precision their stakeholders will trust," said Constellation Research CEO Ray Wang.
The data quality issue is core to driving value with generative AI. Deloitte said in its report:
"The clock is ticking for organizations to create significant and sustained value through their Generative AI initiatives. Promising pilots have led to more investments, escalating expectations and new challenges. During this pivotal phase, C-suites and boards are beginning to look for returns on investment. There is a chance that their interest in Generative AI could wane if initiatives don’t pay off as much, or as soon, as expected."
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Among the key findings:
- 42% of respondents cited improved efficiency, productivity and cost reduction are the top benefits from genAI to date.
- 58% said genAI also gave them increased innovation, improved products and services and enhanced customer relationships.
- Two of three organizations are increasing their genAI value.
- But 41% of organizations struggled to define and measure the exact impacts of their genAI efforts.
- Nearly 70% of organizations said they have moved 30% or fewer genAI experiments into production. Data issues are limiting adoption.
- Only 23% of respondents said they were highly prepared for genAI risk management and governance.
- More than 40% of respondents said their companies are struggling to define and measure impacts of genAI initiatives.
- The majority of companies don't consider themselves prepared for the infrastructure, data management, strategy, risk and talent.
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