As more and more companies adopt AI technology, nearly three quarters (73%) of businesses are recognising data governance as a cornerstone of better AI.

AI continues its advancement and its inherent reliance on data has made data regulations and compliance a major hurdle for companies looking to boost their offerings with AI efficiency.

New research from Experian shows that UK businesses are recognising the critical role of effective data governance in today’s modern economy, but also cite inherent obstacles in putting these practices into action.

The findings reveal that eight in ten (83%) of British businesses acknowledge that data governance should no longer be an afterthought and can give them a strategic advantage.

A further 86% agreed that data governance will become more important over the next few five years.

However, difficulties in integration and scalability, as well as poor data quality are key challenges businesses are having to contend with when it comes to managing data effectively and responsibly through its lifecycle.

“In a world where everything is increasingly based on data, the importance of data management is crucial,” Andrew Abraham, global managing director, data quality, at Experian UK&I said.

“The research shows that British businesses understand that and, by leveraging data effectively, they can gain the competitive edge and ability to deliver better services as well as ensure they remain fully compliant and secure.

“However, there is one thing businesses must remember. While data management is crucial, a one-size-fits-all approach won’t work. Businesses need to develop data governance strategies using flexible tools that align with their own unique opportunities, risks and regulations to unlock the true potential of their data.”

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The findings show the three most common barriers to good data governance to embed data governance into existing ways of working and processes (72%), improving data quality and scalability (71%), and ensuring it keeps pace with existing technology and business models (71%).

Experian provided some steps companies can take to ensure they are following proper data governance, citing the serious consequences that can come with a failure to comply.

Assembling the right team, choosing data governance investments wisely, and regularly reviewing data governance approaches and policies are paramount in staying ahead of the game as AI, and data regulations, continue to transform and advance.