One in Five Businesses Lacking Data Governance Framework Needed For AI Success: Ataccama Report

AI is only as powerful as the foundation it’s built on, yet many businesses are moving forward without the necessary governance, compliance, and strategic alignment. As regulatory landscapes evolve and compliance grows more complex, organizations face mounting risks in the form of flawed AI decisions, data breaches, and eroded customer trust.

It’s not that companies don’t recognize the importance of responsible AI. The real challenge is that they are unable to close the gaps in data governance, leadership alignment, and automation.

Many organizations prioritize regulatory compliance, yet only 42% make it a key focus. Even fewer (26%) embed it within their data teams. This disconnect creates blind spots that lead to risks and inefficiency.

While 55% of organizations feel current regulations are too restrictive, only 2% believe they stifle innovation, underscoring the complexity and urgency of these challenges. Even more alarming is that 20% of organizations operate without governance frameworks, increasing their exposure to risk.

These findings are part of Ataccama’s Data Trust Report 2025, which is based on a survey of over 300 senior leaders and department heads with data-led roles responsible for technology decisions and data strategies.

According to Ataccama, organizations face three paths: absorb the risk by accepting the fines and reputational damage, do the bare minimum and risk falling behind the AI race, or tackle the challenges head-on.

As a data management company specializing in AI-powered data quality, data governance, and master data management (MDM) solutions, Ataccama recommends taking a proactive approach.

Ataccama CEO Mike McKee emphasizes that trusted data isn’t just a compliance requirement; it’s a competitive advantage. “Compliance built on high-quality, trusted data is the foundation for transparency, and it should be regarded as more than a tick-box exercise,” said McKee.

“Tackling this with a scalable solution embedded with AI-enabled automation will unlock a competitive advantage for initiatives such as customer expansion and personalized experiences. The business leaders that understand this and instill the same mindset throughout their companies will be the ones setting the pace in the future.”

The report underscores that automation is the engine of sustainable risk mitigation. It states that automation is not just about efficiency, but it serves as the backbone of scalable risk mitigation. Companies that can automate data validation, integrate automated audit trails for AI models, and embed automation into workflows will unlock a key competitive advantage over those that cling to manual processes.

Equally important is leadership alignment, according to Ataccama. The survey findings reveal that 32% of respondents cite leadership misalignment as a major blocker to responsible AI adoption. The evolution of AI far outpaces historical transformations such as cloud adoption. As a result, AI is evolving faster than leadership can adapt to it.

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“AI doesn’t fail because of technology — it fails because leadership hesitates,” shared Corey Keyser, Head of AI at Ataccama. “Organizations that act decisively to align priorities, build governance, and empower their teams will thrive. The rest will get left behind, stuck in a cycle of indecision and missed opportunities.”

Ataccama recommends that leaders should align their priorities by defining how their organization will scale responsibly and how they can be consistent and accountable at every level. Additionally, the report suggests that leaders should equip their teams with targeted training by investing in tailored programs for governance, compliance, and ethics. Not only will this help close the skills gap, but it will also empower the employees to act.

Addressing the growing sense of regulatory tension, the report highlights a lack of regulatory readiness where many organizations view regulations as restrictive, especially in AI-driven industries. Only 24% of organizations have implemented AI at scale, indicating a significant gap in readiness. Without a solid compliance foundation, businesses risk falling behind. To stay ahead, they need to take a smarter approach.

Ataccama predicts that AI-driven compliance tools offer the potential for a 40% improvement in regulatory adherence by 2025. However, for organizations to achieve this, they must build a cross-functional team that includes a combination of technical, legal, and operational leaders. They must also adopt AI-powered compliance tools and align compliance with business goals. The goal should be to shift the mindset of their teams to see compliance as an opportunity rather than a hurdle.

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