New research from information management giant Iron Mountain reveals Australian companies are both benefiting from good data practices and paying a steep price for poor ones. IDM asked Greg Lever, Iron Mountain’s Senior Vice President, Asia-Pacific what the survey revealed about the local market.

IDM: The research reveals Australian organisations are prioritizing data insight extraction 37% higher than the global average. What unique factors in the Australian business landscape are driving this stronger focus on data utilisation?

GL: The research we commissioned shows that 50% of large Australian organisations are placing greater focus on improving data insight extraction to help them achieve strategic goals over the next 12 months. Australia’s strong business culture around digital transformation, together with government initiatives that support data-driven decision-making, further fuel this focus. For businesses of any size - from large enterprises to the small businesses and start-ups that make up much of Australia's business landscape - innovation and actionable data insights are critical to maintaining a competitive edge.

IDM: Your study found that AI literacy is a top challenge for 42% of Australian businesses—significantly higher than the global average of 28%. What specific skills gaps are you observing in the Australian workforce, and how might this impact the country's AI competitiveness?

GL: Australia’s skills gap is a well-known, ongoing business issue. For AI, businesses attribute the source of this issue as lack of advanced technical knowledge, insufficient training in AI tools and limited understanding of AI ethics and applications. Often these gaps create obstacles to the effective implementation of AI initiatives, reducing Australia’s global competitiveness. Addressing these gaps through targeted education and training will be crucial for enhancing AI literacy and ROI from businesses’ investments in these emerging technologies.

IDM: Nearly half of Australian organisations (48%) identify loss of competitive advantage as the main consequence of data integrity flaws—the highest among markets surveyed. Why do you think Australian businesses are particularly sensitive to this risk compared to other regions?

GL: It’s around 19% higher than the global average of 29% - Australian businesses are highly sensitive to data integrity issues due to their reliance on accurate data as part of strategy development, decision-making and innovation initiatives. The highly competitive market and regulatory environment further amplifies the impact of data flaws on business performance. Australia, for example, has a high cost for data breaches, and the need for compliance due to stringent data protection regulations contributes to this heightened sensitivity.

IDM: The research indicates organisations globally gained an average revenue growth of A$3.4 billion from effective information management. Are Australian companies seeing comparable financial benefits, or are there differences in the "good data dividend" here?

GL: Australian companies are indeed seeing comparable financial benefits, with 84% reporting revenue and profitability growth when information management practices are governed well. This aligns closely with the global average, highlighting the universal value of good data management. The focus on leveraging data for competitive advantage and innovation drives these financial gains. The 'good data dividend' equated to a total average global revenue gain of A$115 trillion.

IDM: While 92% of Australian organisations report benefits from AI readiness strategies, 58% admit their AI initiatives lack consistency. What are the main stumbling blocks preventing more systematic implementation?

GL: Inconsistent data quality, lack of standardised processes, and insufficient integration of AI tools across business functions are the key stumbling blocks for Australian businesses.  Addressing these issues requires a more cohesive approach to AI strategy and implementation, and getting your data in order is number one.  Businesses can then leverage tools like Iron Mountain's Digital Experience Platform (DXP) to ensure that data is not only secure and compliant, but also accessible and actionable.

IDM: Your research identified "leaders" with exemplary AI-ready data practices. How do Australian organisations compare to these global leaders, and what specific areas should they prioritise to close any gaps?

GL: The key focus areas for Australian organisations are eliminating redundant, obsolete and trivial (ROT) data, automating data extraction, and using AI dashboards for transparency to build AI-ready data resources. Prioritising these areas will help close gaps with global stakeholders: 96% of “leaders” are using AI dashboards to explain outcomes and data lineage to non-technical stakeholders. Investing in advanced data management tools and fostering a data-driven culture are also essential steps.

IDM: The report mentions organisations lost approximately A$493,000 over the past year due to data integrity flaws. What are the most common data integrity issues you're seeing in Australian businesses, and how can they be addressed?

GL: Data integrity flaws have led to an approximate A$22 billion average loss globally according to our research with common issues including duplicate data, outdated information, and lack of proper data governance. Addressing these requires implementing robust data management practices, regular audits, and leveraging AI tools for data accuracy. Establishing clear data governance frameworks and training employees on best practices can also mitigate these issues, not least using software which helps keep your data in check.  

IDM: How are regulatory differences in Australia affecting organisations' approach to responsible AI and data management compared to other markets like the U.S. or EU?

GL: Australia's regulations around data management emphasise privacy and data protection, which in turn impacts how businesses locally approach AI and data management. Compared to the U.S. and EU, Australian regulations require more stringent compliance which has a direct influence on data handling practices, which in turn results in a greater focus on ethical AI and transparency in Australia. For example, the Privacy Act locally sets clear rules for business requirements in managing and protecting personal information.

IDM: The research indicates 100% of leading organisations have processes for eliminating redundant, obsolete or trivial data. What practical steps should Australian companies take to implement similar ROT data management practices?

GL: Regular data audits to identify ROT data, using automated tools for data cleanup, and establishing clear policies for data lifecycle management are critical steps for businesses in maintaining strong data quality. Additionally, leveraging AI and machine learning tools can enhance the efficiency of ROT data management. On the human side of technology management, regular training and awareness programs are also a critical factor in supporting these efforts.

IDM: Looking ahead, what timeline do you envision for Australian businesses to overcome their AI literacy challenges, and what role does Iron Mountain plan to play in supporting this transition?

GL: Close to all (92%) Australian organisations are aware that AI readiness strategies have benefited their companies to date, but our research also finds that 42% of Australian organisations view AI literacy as a major barrier – well above the global average – and upskilling our workforce is now an urgent need which even with focused efforts, could take three to five years to achieve.  Iron Mountain is actively supporting this transition through its InSight DXP platform which helps businesses structure and prepare data for AI, while also guiding on responsible data practices and offering strategic insights for sustainable AI adoption.