DDMA Research 2024: Data quality challenge
Data Quality Remains the Key Barrier to AI Adoption in Marketing – DDMA Research 2024
The Dutch Data-Driven Marketing Association (DDMA) just released their annual Data-Driven Marketing Survey for 2024, revealing critical insights about the state of AI adoption in marketing. While AI tools are becoming increasingly accessible, the research shows that fundamental data challenges continue to hold organizations back from realizing AI’s full potential.
Key Research Findings
The Data Access Gap
Perhaps the most striking finding is that 33% of organizations still have limited or no access to their data and insights. In an era where data is often called ‘the new oil,’ this means one-third of organizations are essentially running on empty.
The Quality Challenge
Data quality emerges as a top-3 challenge for 24% of organizations. This isn’t surprising: while basic AI applications like content generation have become commonplace (used by 61% of organizations), more advanced AI implementations remain limited. Why? Because they require high-quality, structured data to function effectively.
The Budget Barrier
Budget constraints remain the biggest challenge, cited by 28% of organizations. This creates a challenging cycle: organizations need better data quality for AI success, but traditional approaches to improving data quality often require significant investment.
The Technology Adoption Paradox
The research reveals an interesting paradox in technology adoption:
- 86% of organizations don’t use a Customer Data Platform (CDP)
- Only 22% use data warehouses
- Just 12% utilize data lakes
Yet, many of these same organizations are attempting to implement AI applications. It’s like trying to build a house without laying the foundation first.
The Business-Technical Divide
Another crucial finding is the disconnect between business and technical teams, particularly in larger organizations. The research shows that:
- Business teams understand data usage but lack technical context
- Technical teams grasp data collection methods but miss business application
- Medium-sized companies, interestingly, face fewer challenges due to more linear organizational structures
What This Means for Your Organization
The DDMA research clearly shows that while everyone is talking about AI, the fundamental building blocks of successful AI implementation – data quality and accessibility – remain significant challenges.
This creates both a challenge and an opportunity:
- Challenge: Traditional approaches to data quality are often expensive and time-consuming
- Opportunity: New AI-powered approaches can help organizations improve data quality more efficiently
Moving Forward: A New Approach to Data Quality
The research suggests that organizations need to rethink their approach to data quality. Rather than viewing it as a purely technical challenge requiring massive infrastructure investments, consider:
- Using AI to Improve AI-Readiness
- Automated data cleaning and standardization
- Intelligent data enrichment
- Real-time quality validation
- Starting Small but Thinking Big
- Begin with high-impact use cases
- Build on existing systems rather than replacing them
- Scale solutions as value is proven
- Bridging the Business-Technical Divide
- Ensure solutions address both technical and business needs
- Focus on outcomes rather than just implementation
- Create clear communication channels between teams
Conclusion
The DDMA research confirms what many organizations have experienced: while AI tools are more accessible than ever, data quality remains the key barrier to successful AI implementation. The good news? Solutions exist that can help organizations break through this barrier without requiring massive infrastructure investments or complete system overhauls.
About Entropical
At Entropical, we specialize in helping organizations overcome their data quality challenges, using AI-powered solutions. Our approach aligns with the needs identified in the DDMA research: improving data quality efficiently, bridging the business-technical divide, and building strong foundations for AI success.
Want to learn how we can help your organization overcome its data quality challenges? Schedule a meeting for a consultation.
Sources: DDMA Data-Driven Marketing Survey 2024, conducted in collaboration with research agency GfK, based on responses from 506 Dutch marketing professionals.
