Only 7% of businesses now go without AI, dropping from 26% 12 months ago, as the drive for AI efficiency continues to take priority, according to a survey of almost 200 data leaders from Carruthers and Jackson.

Despite this, 39% reported little to no data governance framework but are pushing ahead with AI adoption anyway. In contrast, 37% of data leaders claimed their business adopts multiple governance frameworks, rising from 31% in 2023.

Caroline Carruthers, Co-Founder and Chief Executive of Carruthers and Jackson, said: “An AI Paradox has been created, as the use of AI tools in organisations has surged in the last year, yet employees lack the data literacy to use them effectively, as their fundamental understanding of data remains largely unchanged from last year.”

Among those on top of their data strategies, data leaders indicated a shift from one-size-fits-all data governance frameworks to more bespoke frameworks tailored to specific departments within their organisation.

Responding to the findings, Richard Bovey, Chief for Data at AND Digital said: “The benefits of AI are well-known, but a gap remains in the understanding and consideration of the risks it poses if implementation is rushed. Businesses need a strong data governance structure to overarch technology development, and that’s especially true when it comes to AI, not only facilitating greater accuracy and reliability within AI outputs but helping to mitigate potential privacy and security concerns.

“Without the data basics in place, even the best AI technology will fall short in delivering meaningful ROI for a business, so it’s important that organisations take a data AND innovation approach to project delivery. Weaving data governance principles across the development and integration process, supported by data skills, will greatly increase the likelihood of success for AI systems, providing a platform for them to be a business enabler rather than a costly mistake.”

The report found that 44% of organisations have at least seen a rise in ethical conversations around AI, but only 13% have turned these into structured AI ethics policies.

Data literacy among staff was identified as a growing concern, with 57% revealing that most employees lack data literacy, despite 53% of organisations reporting an increase in AI tools and usage.

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