17 June 2025
As UK companies accelerate their adoption of AI technologies, nearly half of data leaders express serious concerns that a lax approach to data management could lead to inevitable data leaks or privacy breaches.
New research from AND Digital highlights the growing risks associated with rushing into AI without addressing foundational data governance issues.
The 'Know Me or Lose Me' report, which surveyed 250 C-suite and data executives from large enterprises, reveals alarming gaps in data strategy. Over half (52%) describe their organisation’s data processes as outright 'chaos,' while nearly half (48%) admit they lack any formal data governance framework. Instead of fixing these vulnerabilities, many organisations are choosing to build their AI initiatives on shaky ground. Sixty percent of business leaders say their companies are prioritising AI investment over strengthening their data infrastructure, risking long-term customer trust by focusing on speed rather than security.
The urgency to leverage AI appears to be leading organisations to neglect compliance obligations, with almost half (49%) acknowledging that they are knowingly bypassing regulatory requirements. As AI expands the competitive divide, 64% agree that customer loyalty is increasingly driven by access to data and advanced analytics, which many firms are unable to provide due to siloed and fragmented systems. A significant 67% see disconnected data and systems as their biggest obstacle to innovation.
Despite these challenges, the importance of quality data remains clear. An overwhelming 71% of respondents agree that data is the foundation for delivering personalized, timely, and relevant customer experiences. Leaders recognize that without trustworthy data, efforts to improve customer engagement and satisfaction are at risk.
“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. Without a solid data foundation, businesses risk eroding customer trust and losing the engagement they’re striving to build,” said Richard Bovey, Chief for Data at AND Digital. “Everyone wants to jump on the AI bandwagon, but rushing ahead without securing data integrity or ethical sourcing is a shortcut to disaster. Data governance shouldn’t be an afterthought in the race to modernize; it should be the blueprint. Companies must adopt an innovation AND customer-centric approach to unlock better experiences, foster loyalty, and ensure long-term success.”
The findings serve as a stark warning: organisations must prioritise robust data management and governance to safely harness AI’s full potential, or risk damaging their reputation and losing customer trust in the process.
