AI Doesn’t Know Your Data is Garbage
There’s no denying that artificial intelligence is the belle of the ball, well, the belle of ALL the balls. Apparently, it is going to make your (insert buzzword here) a world-class growth engine that will (insert another buzzword-heavy phrase here).
But there is a dirty little secret that affects every organization – particularly large enterprises. AI doesn’t know the quality of your data.
But there is a dirty little secret that affects every organization – particularly large enterprises. AI doesn’t know the quality of your data. It will loudly proclaim a convincing, authoritative narrative, even if the underlying data it is based on is absolute trash. And let’s be honest here – most of the time it is.
For most organizations, defining KPIs and aligning customer touchpoints with the data collection to support them is an afterthought – if it’s even a thought at all. This is a significant problem in a single system, but modern digital ecosystems are a patchwork of systems that need to be integrated and normalized, snowballing the issue. This is nothing new, of course. Most senior leadership don’t understand analytics or data science. They view it as just a cost center that should be as lean as possible, rather than the key to defining success and understanding which efforts are most effective at executing strategy and driving revenue.
For decades, technologists have acknowledged the phrase ‘Garbage in, garbage out’. But in today’s frenzied AI FOMO environment, it’s being ignored. Unfortunately, this is incredibly dangerous. It can lead to basing an entire digital strategy on a confident, persuasive argument that is no better than a hallucination. Layering on agentic AI makes this infinitely worse.
In the old days, broken data would reveal itself in a wonky dashboard. An analyst would dig into the issue and identify it. AI doesn’t work that way. It’s designed for ambiguity and to fill in the gaps. In other words, AI isn’t going to tell you it’s wrong. It will invent a reason why it’s correct. The combination of both agentic AI and leadership making autonomous decisions based on a flawed picture of the landscape is inherently hazardous. This synthetic authority is a critical risk to an organization. It’s not only a challenge to big swings – smaller, frequent decisions are arguably even more of a problem as they slowly compound distortions of reality until its entirety is flawed.
Does this mean organizations shouldn’t adopt AI? Of course not. It means that AI should not be operationalized before an organization’s data house is in order and prepared for the roadmap ahead.
But what does that mean? It means a strong data strategy with solid governance. Data is not just a byproduct of operations. It’s a product and an asset whose management, curation, and documentation should be a top organizational priority.