Legacy Data Infrastructure Is Driving $108 Billion in Annual Wasted AI Investment, New Survey Finds

As enterprises race to adopt AI, weak data foundations are preventing more than half (58%) of organizations in the United States and Canada from realizing value and contributing to an estimated $108 billion in wasted global AI investment each year, according to a new report from Hitachi Vantara, the data storage, infrastructure and hybrid cloud management subsidiary of Hitachi Ltd. (TSE: 6501). The research shows that AI is rapidly exposing long-standing gaps in data management, governance and security rather than masking them.

Click here to download the Hitachi Vantara State of Data Infrastructure Report
The report surveyed over 1,200 C-level executives and IT leaders across 15 countries, including 307 respondents in the U.S. and Canada. It found that 84% of these organizations say the complexity of their data infrastructure environments is growing rapidly or too quickly to manage.

As data environments grow more complex, organizations are finding it harder to maintain visibility, control and accountability across their systems. With leaders expecting investment in AI to grow by 76% over the next two years, those challenges are intensifying, placing greater strain on security and data governance. Among U.S. and Canadian business and IT leaders:

• Only 43% report having predictive or automated infrastructure operations, limiting their ability to manage complexity;
• 57% say the complexity of their data makes identifying a data breach more difficult;
• 59% fear a critical data loss would be catastrophic; and
• Half (50%) say their systems are complex enough that executives would lose sleep if they understood the risks.
  
  

“AI is raising the bar for how organizations govern and manage their data,” said Octavian Tanase, chief product officer, Hitachi Vantara. “As AI becomes more embedded in business operations, leaders are realizing that governance, visibility and control matter just as much as performance. As a result, we’re seeing that organizations that have invested in automation and optimized data infrastructure are moving faster with confidence, while others are seeing complexity widen the gap between those that can manage it effectively and those that cannot.”

The Great AI Divide

AI adoption is nearly universal, with 98% of organizations using, piloting or exploring AI, but readiness to scale and realize value varies widely. The findings reveal a clear divide between organizations that have built strong data management foundations and those struggling to keep pace as AI adoption accelerates. The difference is not whether companies are using AI or how large a company is, but whether they pair a clear AI vision and leadership alignment with data environments that are structured, governed and built to scale.

In the U.S. and Canada, 42% of organizations are considered data-mature, or leaders, defined as having managed or optimized data practices. Meanwhile, 58% fall into defined, emerging or fragmented stages of data management, or data laggards, meaning their data environments lack the structure, automation or consistency required to maximize the value of AI initiatives at scale.

That gap is reflected directly in AI performance and return on investment (ROI):

• 84% of data-mature organizations report measurable AI ROI, compared with only 48% of data laggards.
  
  
• Data quality is the most commonly cited driver of AI success, with 59% of organizations attributing successful AI projects to the use of high-quality data – rising to 75% among data-mature organizations, compared to 47% for those with weaker data practices.
  
  
• Among organizations with mature data practices, 59% say AI is critical to their business, compared with just 18% of organizations with weaker data foundations.
  
  

Data-Mature Organizations Show Clear Differences in Data Infrastructure Readiness

Organizations with strong data foundations demonstrate shared practices that set them apart, particularly when it comes to leadership alignment, infrastructure modernization and operational discipline. Among organizations leading in data maturity in the U.S. and Canada, 87% report having a strong leadership vision, enabling data and AI initiatives to be treated as strategic priorities rather than siloed IT projects.

Companies with mature data practices are also significantly ahead in automation, with 65% reporting automated infrastructure, compared with just 27% of organizations with weaker data practices, reducing operational friction as AI scales. Additionally, 82% of data-mature companies report having sustainable design and built-in resilience, reflecting an infrastructure approach designed to support long-term growth, efficiency and risk reduction as AI adoption expands, compared with just 19% among organizations with weaker data practices.

The research further underscores the importance of leadership engagement. While 96% of these organizations say they need outside help with data infrastructure, many continue to struggle to translate that need into coordinated action, highlighting a gap between recognizing the challenge and executing a long-term data strategy.

“As AI becomes central to how every business operates, leadership has to treat data foundations as a strategic requirement, not just a technical concern,” said Sheila Rohra, CEO, Hitachi Vantara. “This report makes clear that AI succeeds when the data behind it is trusted, well-governed and resilient. Our role is to help organizations simplify the management of their environments, strengthen governance and support a data strategy that can drive long-term growth.”

For more information on how Hitachi Vantara is helping customers provide a data-driven approach to modern data infrastructure, visit www.hitachivantara.com.

Hitachi Vantara is transforming the way data fuels innovation. A wholly owned subsidiary of Hitachi Ltd., Hitachi Vantara provides the data foundation the world’s leading innovators rely on. Through data storage, infrastructure systems, cloud management and digital expertise, the company helps customers build the foundation for sustainable business growth. To learn more, visit www.hitachivantara.com.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.

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