New Report Reveals Widespread Data Distrust Is Undermining AI Ambitions

Aarhus, Denmark, November 18, 2025 – A new study from Stibo Systems, a global leader in master data management (MDM) solutions, reveals that despite aggressive investments in AI, most organizations are being held back by fragmented and unreliable customer data.

The report, “Blind Spots and Broken Promises: The Real Cost of Fragmented Customer Data,” surveyed 500 U.S. business leaders across manufacturing, retail, consumer packaged goods (CPG), financial services and other industries. The report found that 91% of executives rate investment in improved customer data management as “very” or “extremely” important, yet only 31% fully trust the data that drives their decisions. More than half (55%) say poor data quality has already led to lost revenue, while 82% report losing over $100,000 annually due to inaccurate customer information.

“There’s a concern brewing – that pouring money into flashy AI products to create smarter customer experiences may not be enough,” said Adrian Carr, CEO of Stibo Systems. “We’re seeing global enterprises building houses of cards on shaky data foundations, amplifying errors when that data is feeding expensive AI tools. If your data isn’t 100% trustworthy, it’s not fit for purpose.”

Other key findings:

• Despite most organizations claiming to have centralized data processes, the Stibo Systems study found that 76% still rely on “shadow databases” such as off-system spreadsheets to manage customer information. The result is a cycle of manual rework, inefficiency, and mistrust.
• Six in ten leaders say their teams spend more than six hours each week cleaning and reconciling customer data instead of focusing on strategic or collaborative tasks.
• Poor data governance impacts AI readiness. Nearly four in five (79%) respondents believe they are ready for customer-facing AI, but 28% cite data quality as a barrier to adoption.

“When fed with trustworthy data, AI insights can create high-value context businesses can use to get to the heart of what customers really want, even the emotions surrounding products and services,” Carr said. “As everything becomes more nuanced, the organizations getting their data in good order now will be the ones defining customer trust.”

Learn more from the full report, “Blind Spots and Broken Promises: The Real Cost of Fragmented Customer Data.”