Poor Quality of Data
Many business leaders underestimate how dependent AI is on the quality of the data behind it. Salesforce’s 2026 State of Data and Analytics report found that 50% of data and analytics leaders wasted significant resources on training AI models when doing it with poor-quality, disconnected organisational data.
Gartner predicts that through 2026, organisations will abandon 60% of AI projects that are not supported by AI-ready data.. To clarify, Gartner defines AI-ready data as data that is representative of the use case, including every pattern, error, outlier and unexpected case needed to train or run the model for that specific purpose, and dependent on metadata – information about the data itself. Metadata allows the data to be aligned, qualified and governed.
The distinction matters because data that already meets a company’s ordinary quality standards does not automatically count as AI-ready. A spreadsheet can be accurate and still be unsuitable for an AI use case. What constitutes AI-ready data depends on the project, but in most cases, data must first be prepared, structured and governed for the intended use.
McKinsey’s research points to the same problem from a different angle. Only 7% of companies have fully scaled AI across their organisations, and more than two-thirds of high-performing companies name data as the primary obstacle to doing so. EY’s AI Pulse Survey of 500 senior business leaders found much the same pattern from the other side of the table: 83% said their organisation’s AI adoption would be faster with stronger data infrastructure in place, and 67% said a lack of infrastructure is actively holding adoption back.
Part of the reason lies in the company’s underlying data infrastructure. Traditional software typically works with predefined data structures and rules. AI systems can draw information from multiple sources, including documents, databases, applications, prompts and workflows, and combine that information dynamically to produce an output. If the infrastructure is not prepared for this, the reliability of those outputs becomes much harder to control, and companies may struggle to scale AI confidently across the organisation.
This is one of the technical reasons messy and disconnected data can cause an AI project to fail.. A model learns from whatever pattern exists in the data it is given. If a customer, an order or a completed transaction is defined one way in an ERP system, a different way in a CRM, and a third way in a spreadsheet, the model does not know which definition is correct. It only has three conflicting versions of what should be a single value, and it learns from all three as if they were separate, valid inputs. The result is a system that returns an output that cannot be trusted.
Companies therefore need a reliable foundation that connects, prepares and governs data across systems and files before attempting to scale AI. In many organisations, that foundation is a data platform.
A Weak Use Case
A second common cause has little to do with AI as a technology and everything to do with why the company decided to build it in the first place. Clients sometimes approach Eunoia saying, “Everyone does AI, and we want it too. What can you do for us?” might take that brief and start suggesting ideas straight away. But ideas alone do not necessarily create business impact. At Eunoia, we suggest starting by identifying where AI can create measurable value, using the framework behind our Decision Operating System.
At Eunoia, consultations focus on the business result, not the technology choice alone. This is first step in our Decision Operating System.. To understand where a data or AI project can have the greatest impact, we map the decisions the business already relies on and identify where they can be improved.
We also offer a separate AI and data opportunity assessment that helps a company identify the use case most likely to create business value.
Before any technical work begins, it helps to know which decisions carry the most value, who makes them, and what they currently rely on when making them. A project built without this understanding risks being centred on a weak use case. Even a technically successful AI system will produce little return if it does not improve an important decision or solve a problem people actually need solved.
Poor Project Delivery
A project can be chosen correctly and build on properly prepared data and still fail at the point of delivery. What happens next depends largely on the capability and approach of the vendor delivering it. AI expertise varies considerably between providers, and the criteria below set out what to check before signing a contract with an AI company.