Four in ten execs don’t trust their data to
generate accurate AI outputs
A new survey of C-suite executives and AI leaders shows while
enterprise decision-makers trust the potential of AI, many lack
confidence in their company’s strategy to execute as well as the
data readiness to ensure reliability of AI outputs. Moreover, 7 in
10 executives say their AI strategy is not fully aligned to their
business strategy today.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240522830408/en/
Teradata and NewtonX Trust in AI Survey,
May 2024 (Graphic: Business Wire)
The survey, conducted for Teradata by NewtonX, a leading global
B2B market research company, included expert interviews and a
quantitative study of executives and decision makers who have
inside knowledge into their company's AI strategy and execution.
Those surveyed all have responsibility for or use AI in their jobs.
While 61 percent said they fully trust the reliability and validity
of their AI outputs, 40 percent do not believe their company’s data
is ready yet to achieve accurate outcomes.
“The foundation of AI is clean, reliable, trustworthy data
because it is the backbone of AI outputs,” said Jacqueline Woods,
Chief Marketing Officer at Teradata. “While achieving complete
trust remains elusive for many executives, our survey shows a
deepening understanding of how to reach trusted AI at
enterprise-scale and confirms that Teradata is well positioned to
help its customers with these business objectives.”
AI is Essential, but Clear, Aligned
Strategies are Scarce
While 89 percent of enterprise executives believe AI is
necessary to stay competitive, only 56 percent say their companies
have a clear AI strategy and only 28 percent see their AI strategy
as closely aligned with and supporting broader business objectives.
Most successful AI implementations occur at the departmental level
-- just 12 percent have deployed AI solutions company-wide, while
39 percent have implemented AI in select departments.
Executives identify the most significant benefits of AI as a
substantial increase in productivity (51 percent) and improvements
in customer experience (50 percent). However, despite the potential
of customer-facing applications, most C-suite leaders prefer
tackling AI projects that enhance internal processes, as these
projects tend to minimize AI risks and are seen as more likely to
improve cost control rather than drive growth.
- About half of executives surveyed have successfully leveraged
AI to enhance employee productivity and collaboration (54 percent)
and support decision-making (50 percent), yet only a third have
used AI for product development (30 percent) or sales and revenue
forecasting (30 percent).
- More than half (57 percent) of executives surveyed said they
are concerned about how AI missteps could impact customer
satisfaction, company reputation, or both, noting that there needs
to be greater cohesiveness between AI and business planning for it
to be successful.
- Even with internal projects, 63 percent of executives surveyed
report using a mix of closed and public data sets, while only 29
percent rely exclusively on closed data sets.
- Barriers to scaling AI projects effectively include:
- Scarcity of AI technical talent (39 percent);
- Lack of budget required to scale AI projects (34 percent);
- Difficulty in measuring business impact (32 percent); and
- Insufficient technology infrastructure (32 percent).
While 73 percent of those surveyed see their companies as early
adopters with many technologies, 60 percent said their level of AI
adoption is simply “on par” with their competitors; just 27 percent
see themselves as leading AI adoption in their industries.
Increasing Trust is a
Mandate
Trusting in their AI projects and outcomes is critical for
executives. One participant said, “… we want to be very clear with
our customers what data has been used to train the models,” noting
that it can be easy to introduce bias into the models by choosing
the wrong training sets. Another said, “… master data management is
not glamorous, but … if you’re basing everything off the data and
the data is flawed, then you’ve got a problem.”
Beyond unbiased data, survey participants said enhanced
efficiency in operations (74 percent), demonstrated successful use
cases (74 percent), and improved decision-making processes (57
percent) are among the top factors that can showcase trust within
the organization around new AI deployments. Also very important to
trust in AI is prioritizing vendors and partners that facilitate
seamless integration with top-tier AI solutions (67 percent).
In other findings, those surveyed noted the following:
- Reliable and validated outcomes (52 percent),
consistency/repeatability of results (45 percent), and the brand of
the company that built their AI (35 percent) are the three most
important factors in building trust in AI.
- Security (61 percent), transparency (55 percent), governance
(45 percent), and improving the company’s performance (40 percent)
were cited as key aspects of trusted AI.
Contributing to AI
Success
Respondents ranked the following as the primary contributing
factors in their AI successes to date: clear strategic vision and
leadership support (46 percent); effective communication of AI
benefits to stakeholders (46 percent); and sufficient investment in
AI technology and infrastructure (41 percent).
Most of the respondents (84 percent) said they expect to see
results from AI projects within a year of deployment, and more than
half (58 percent) said the results would be quantifiable within six
months. Another 60% said they have already seen “demonstrable ROI”
with their existing AI solutions.
“There is tremendous opportunity to improve AI trust by ensuring
greater cohesion between business and AI plans. But planning only
gets you so far,” Woods said. “Working with the right partners and
solutions can help accelerate trust by showing accurate results and
ROI from AI projects quickly. But remember, all successful AI
projects start with a foundation of clean, reliable data – I call
it ‘golden data’ – based on solid data sets and offering full
transparency, and that’s where Teradata can help.”
About the survey /methodology
The survey was distributed in the US, Europe, the UK, and Asia,
and polled C-suite executives and AI decision-makers in companies
with at least 1,000 employees and more than $750M in annual
revenues. The survey reached ~300 AI-relevant executives, from
companies like Nike, P&G, Hermes Paris, Allianz Partners,
Prudential Financial, Honeywell and Novartis, with about half of
the respondents located in the US.
About Teradata
At Teradata, we believe that people thrive when empowered with
trusted information. We offer the most complete cloud analytics and
data platform for AI. By delivering harmonized data and trusted AI,
we enable more confident decision-making, unlock faster innovation,
and drive the impactful business results organizations need
most.
See how at Teradata.com.
About NewtonX
The world’s leading businesses find their advantage with
NewtonX. We’re the only B2B research company that solves the
challenges of today’s insights leaders by connecting them with
verified business expertise. Our AI-driven algorithm—the NewtonX
Graph—custom recruits the perfect audience for your business
question from an open network of 1.1 billion professionals across
140 industries. Every professional is 100% verified, so you can
make your next bold move with confidence.
To learn more, head to newtonx.com.
The Teradata logo is a trademark, and Teradata
is a registered trademark of Teradata Corporation and/or its
affiliates in the U.S. and worldwide.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240522830408/en/
Jennifer Donahue jennifer.donahue@teradata.com
Teradata (NYSE:TDC)
Historical Stock Chart
From Feb 2025 to Mar 2025
Teradata (NYSE:TDC)
Historical Stock Chart
From Mar 2024 to Mar 2025
