Australian and New Zealand (ANZ) organizations aren’t waiting for AI to come to them; they’re going out and getting it.

Our research reveals 32% of ANZ organizations are putting more than a quarter of their tech budget for the next 12 months toward generative AI (versus 25% of organizations globally), with enhancing the customer experience emerging as the key outcome.

Yet, roadblocks remain that must be overcome as business leaders seek ROI on their AI spend, and the biggest hurdle appears to be the data required to underpin AI.

Data is the fuel that feeds AI. Yet, this is often a mess of structured and unstructured data sources, each locked off from the others. Without a centralized data strategy, AI strategies are doomed to fail.

For AI to be effective, models not only need data, but they need data that is accurate, streamlined, and easy to analyze. Without that, AI is prone to hallucinations and inaccurate analysis, both of which push any hope of ROI further and further out of reach.

In the ANZ region, this is one of the biggest hindrances to attaining ROI on an AI implementation. Our research found that, compared to the global average, ANZ organizations more often cited a lack of data diversity/range (56% versus 42%), time-consuming data management tasks (62% versus 55%) and data preparation (59% versus 51%) as difficult areas. Further, ANZ organizations more often cited difficulties breaking down data silos (76% versus 64%).

So, how does an organization go about setting up a strong data strategy and building the foundation for AI?

Getting the data house in order

Data should be considered as valuable to an organization as any other asset. But while all companies possess data, extracting value requires it to be easy to use, connected across every data source, and secure.

Achieving this requires a modern data platform that breaks down the silos and ultimately allows data from one area to be paired or analyzed with others.

Theo Hourmouzis @ Snowflake: Without a modern data platform, organizations would be required to undertake a manual reclassification process for all their data to ensure consistency and ease of analysis, and wouldn’t be able to leverage the information contained within unstructured data in a similarly consistent way.

Unlike traditional storage platforms, the data platforms of today can collate all forms of data, be it structured (i.e., information that is organized into a clearly defined format consistent with others) or unstructured (i.e., data that lacks any predefined format, such as a social post, an image or a video, etc.). Once within a modern data platform, data can be shared across departments, systems, and even organizations with just a single click.

Without a modern data platform, organizations would be required to undertake a manual reclassification process of all their data to ensure consistency and ease of analysis, such as moving everything to SQL or Excel sheets. And they wouldn’t be able to take advantage of the information contained within unstructured data in a similarly consistent way.

However, once such a foundation is in place, analyzing the data to extract insights and value is open to limitless opportunities, particularly through generative AI.

The right culture

While the proper foundation can give any organization a head start, it is only one side of the coin.

Technology — from the iPhone to the cloud and AI — is disruptive by nature and drives change throughout an organization. This can have a huge impact on people. Business leaders need to work to dispel the fear that AI might herald an era of job losses while being clear about the changing skillsets workers will require.

As such, workplace culture must be addressed when implementing new technologies, particularly AI. Leaders need to ensure they have access to education and resources so they can understand the technology themselves. This must be done before educating their workforce on the benefits of the technology and the skills required.

When hiring or promoting internally, businesses need to consider not only the right person for the job as it exists today, but also provide them with learning opportunities to gain the necessary skills to master the role as technology reshapes it.

This will help establish a culture of openness between employees and leaders to discuss the use of AI and its purpose, with the aim of enabling everyone to use the technology without fear and fully leverage its potential.

AI is only as strong as its data foundation

AI is not just something a business can download and deploy.

It requires a strong data foundation that supplies the model with the data it needs in an easy, connected, and secure manner.

It also demands that the leaders implementing it bring their employees, partners, and customers along for the journey. As with every major technological leap, trepidation exists that can only be overcome through a conscious, proactive effort to educate key stakeholders and dispel the many myths surrounding it. 

It may seem like an arduous process, but, ultimately, it’s a vital process if a business is to realize its potential. Those who succeed in laying the groundwork will thrive, while those who fail to do so will see themselves left behind.

The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CDOTrends. Image credit: iStockphoto/Nobi_Prizue