UK businesses´ rapid artificial intelligence adoption sparks data chaos and privacy fears

New research warns that UK enterprises fast-tracking Artificial Intelligence risk data leaks and regulatory breaches due to neglecting basic data governance.

UK companies are advancing their adoption of artificial intelligence, but this technological acceleration is raising significant concerns among data leaders regarding the adequacy of data management practices. According to new research by AND Digital, nearly half of surveyed data executives believe that a careless approach is likely to result in data leaks or privacy breaches in the near future. The report, titled ´Know Me or Lose Me,´ surveyed 250 executives from large enterprises and revealed substantial vulnerabilities as organisations prioritise artificial intelligence at the expense of data governance.

More than half (52%) of respondents labeled their data processes as ´chaos,´ and 48% admitted that their organisations lack any formal data governance framework. Despite these deficiencies, the majority of business leaders are accelerating artificial intelligence investment rather than shoring up the underlying data infrastructure. Sixty percent stated their companies are putting artificial intelligence ahead of strengthening data management, putting customer trust on shaky ground. Compliance is also being compromised; nearly half acknowledge regulatory bypasses, and fragmented data environments are hindering innovation. Disconnected systems and siloed information were cited by 67% as the biggest barrier to progress, making it difficult for firms to deliver competitive, data-driven services.

The research underscores the critical role of high-quality data in enabling timely, relevant, and personalised customer experiences. An overwhelming 71% of executives recognised the foundational importance of trustworthy data for sustaining engagement and satisfaction, even as they struggle to implement effective governance. Richard Bovey, Chief for Data at AND Digital, highlighted the risks, stating that companies neglecting data integrity and ethical sourcing could face both operational inefficiency and erosion of customer trust. He emphasised that data governance should be a core blueprint for modernisation rather than a secondary concern in the race to capitalise on artificial intelligence.

The findings represent a strong warning for business leaders: without immediate prioritisation of robust data management and governance, the rush toward artificial intelligence assimilation may lead to harmful data events, regulatory repercussions, and damaged reputations. Only by establishing sound data foundations can UK organisations unlock the full customer-centric and innovative potential of artificial intelligence while maintaining trust and compliance.

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