AI data challenges top priority for 41% of Australian firms

A recent survey by Hitachi Vantara reveals that 41% of Australian companies are prioritising data concerns in implementing AI projects, yet many IT leaders are not taking essential measures to ensure data quality and management.

The Hitachi Vantara State of Data Infrastructure Survey also finds that AI is increasingly viewed as essential, with 51% of Australian IT leaders deeming it a necessary component of their organisations, compared to 35% globally.

Furthermore, 36% of Australian CEOs describe AI as 'a revolution', in contrast to 30% globally. Despite its importance, only 28% of Australian companies consider AI relevant for discovering new business opportunities.

According to the survey, 'good project management and governance' was cited by 47% of Australian respondents as key to successful AI projects, while 35% emphasised the need for high-quality data. The demand for data storage is expected to rise significantly, increasing by 137% by 2026, highlighting challenges in storing, managing, and tagging data appropriately for AI models.

The survey, which included responses from 1,200 C-level executives and IT decision-makers across 15 countries including 75 from Australia, indicates that many Australian businesses are more focused on data security than on data quality, sustainability, and infrastructure management. Notably, only 44% of respondents reported that data is typically accessible when needed.

There is a notable gap in data management practices, as 41% of respondents are not employing methods such as data tagging for visualisation, only 36% are enhancing training data quality, and a mere 23% regularly review datasets for quality. Return on investment is a chief concern for 45% of those implementing AI, along with deployment speed (44%) and cost and security (42%). Additionally, 76% recognise the potential devastation of significant data loss, and a similar percentage express worry about AI tools being leveraged by hackers.

The survey also shows that 25% of Australian IT leaders are seeking to overcome the challenge of AI's inability to explain module outputs by establishing AI governance frameworks, a lower proportion compared to 36% globally.

Only 33% are working to better their data to ensure precise model training, compared to 38% globally. Sustainability in AI strategy is notably low, with just 28% prioritising it, despite 45% prioritising ROI.

George Dragatsis, ANZ Chief Technology Officer at Hitachi Vantara, commented, "The survey makes it clear that during 2025, AI will stand out as both an opportunity and a challenge for Australian businesses. On one hand, it offers unprecedented possibilities for innovation and efficiency. AI-powered tools are enabling organisations to automate network design, optimise operations, and even generate software code. These advancements promise significant productivity gains and cost savings, particularly in areas such as predictive maintenance, customer support automation, and network optimisation.

However, the rapid adoption of AI also introduces new vulnerabilities. Automated processes could inadvertently create flawed code, leaving networks exposed to exploitation. Consequently, businesses should be focusing on handling massive data sets in a way that prioritise data resiliency, business continuity and energy efficiency and balance the benefits of AI with rigorous oversight to ensure secure and reliable implementation. This includes deploying secure development practices, conducting extensive testing of AI-generated systems, and creating transparent accountability structures for AI-driven decisions."

The survey highlights the necessity of third-party support as organisations advance AI initiatives. Key areas requiring assistance include secure, reliable hardware, efficient data storage and processing solutions, and resilient software to guard against cybersecurity threats.

A skills gap persists, with 54% of leaders acquiring AI skills through experimentation and 27% through self-teaching. Overall, 68% of Australian respondents report engaging consulting external experts to effectively complete AI projects.

Nathan Knight, ANZ Managing Director at Hitachi Vantara, stated, "Tapping into the experience of a strong partner can help Australian enterprises to make the right, and rightsized, investment decisions when it comes to setting up AI and data infrastructure."

"An experienced partner also knows its way around data preparation for AI use cases - including how to standardise formatting, how to cleanse the data, how to properly utilise it, and how to ensure that data that is fed into AI models remains protected and secured."