AvePoint's Inaugural AI and Information Management Report Reveals Organizations with Mature IM Strategies are 1.5x More Likely to Realize AI Benefits

Rhea-AI Summary

AvePoint (AVPT) released its AI and Information Management Report, highlighting the importance of a comprehensive IM strategy in overcoming challenges during AI implementation. The survey of 750 digital workplace leaders revealed that organizations face data quality issues, but those with mature IM strategies are more likely to benefit from AI. Despite concerns about AI safety, organizations are increasingly adopting AI technologies.

Insights

Data Security Analyst

The survey conducted by AvePoint highlights a significant concern in the realm of data security within AI implementations. The mention of unintended data exposure as a top challenge indicates a potential risk for organizations that could lead to breaches of sensitive information. This is particularly relevant for businesses that are increasingly reliant on cloud services and SaaS platforms, as they must ensure robust security measures are in place to protect their data.

From a data security perspective, the implication is clear: companies must invest in advanced information management (IM) strategies to mitigate risks associated with AI deployment. This is not only a matter of protecting against external threats but also about maintaining data integrity and quality, which are critical for AI systems to function effectively. A mature IM strategy can help in identifying and classifying sensitive data, implementing access controls and establishing clear data governance policies.

For stakeholders, the short-term benefits of addressing these concerns include enhanced trust in AI systems and prevention of potential financial and reputational damage from data breaches. In the long-term, a robust IM framework can provide a competitive edge by enabling safer and more effective use of AI technologies.

AI Implementation Consultant

The findings presented by AvePoint underscore the importance of information management maturity in realizing the full potential of AI. The statistic that mature IM strategies lead to a 1.5x higher likelihood of benefitting from AI is particularly telling. It suggests that companies with well-established IM frameworks are better positioned to leverage AI for operational improvements and strategic decision-making.

For businesses, this translates to a need for a comprehensive approach to data management that encompasses not just security, but also data quality and lifecycle management. The fact that data quality issues are cited as the top challenge in AI implementation reflects the critical role that accurate, clean data plays in training and running AI algorithms.

Companies that prioritize IM will likely see short-term gains in AI efficacy and reliability, leading to improved business processes and decision-making. In the long-term, these organizations may also experience a positive impact on their innovation capabilities and overall market competitiveness.

Market Research Analyst

The AvePoint report provides insight into the current state of AI implementation across various industries. The revelation that fewer than half of the organizations feel confident in their ability to use AI safely is a significant indicator of market readiness and adoption challenges. This sentiment could influence the pace at which AI is integrated into business operations and could also affect the demand for AI-related services and products.

Investor and stakeholder confidence in companies offering AI and SaaS solutions may be affected by these findings. Businesses that can demonstrate a strong IM strategy and a commitment to data quality and security are likely to be more attractive to investors. This could lead to a shift in investment towards companies that have established robust AI governance frameworks.

In the long-term, the market may reward organizations that address these challenges effectively, potentially leading to shifts in stock market valuations for companies in the AI and SaaS sectors.

Findings suggest a comprehensive IM strategy may also help overcome top challenges organizations faced during AI implementation, including unintended data exposure and data quality issues

JERSEY CITY, N.J., April 03, 2024 (GLOBE NEWSWIRE) -- AvePoint (Nasdaq: AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced the results of its inaugural AI and Information Management Report in collaboration with the Association for Intelligent Information Management (AIIM) and the Centre for Information Policy Leadership (CIPL). AvePoint surveyed over 750 digital workplace leaders across the world and industries and found that nearly every organization experiences challenges when implementing artificial intelligence (AI), with the top challenge being issues with data quality. However, organizations with more mature information management (IM) strategies are 1.5x more likely to realize benefits from AI than those with less mature strategies.

According to the survey, fewer than half of organizations are confident they can use AI safely today. Further,

• Before implementing AI, 71% of organizations were concerned about data privacy and security, while 61% were concerned about quality and categorization of internal data.
• Fewer than half have an AI Acceptable Use Policy, despite widespread use of publicly available generative AI tools (65% of organizations use ChatGPT and 40% use Google Gemini today).
• When implementing AI, 45% of organizations encountered unintended data exposure, meaning one of their biggest concerns became reality.
  

"Unsurprisingly, data privacy and security were among the top concerns for organizations before implementing AI,” said Dana Simberkoff, Chief Risk, Privacy and Information Security Officer, AvePoint. “The reality is that not enough organizations have the proper policies in place today, which exposes them to risks that could be mitigated, if they better protect and govern their data and educate their employees on the safe usage of this technology.”

The survey exposed contradictions in organizations’ perception of readiness for AI compared to their reality. Many companies experience gaps in data readiness and information management that have already or will pose significant obstacles to safe and successful AI implementation.

• 88% of organizations report they have an IM strategy in place, but 44% lack basic measures such as archiving and retention policies and lifecycle management solutions.
• Just 29% of organizations use automation in most aspects of their IM strategy. But data volume is growing, with 64% of organizations managing at least 1 petabyte of data and 41% managing at least 500 petabytes of data.
• When implementing AI, 52% of organizations faced challenges with internal data quality.
  

“The amount of data companies are generating and must manage is growing rapidly, and this will only accelerate as more organizations utilize AI technology,” said Alyssa Blackburn, Director of Information Management, AvePoint. “If organizations don’t establish or adapt their information management strategies, the challenges they are already facing will be exacerbated by AI. The good news is, 77% of organizations recognize they must implement additional strategies to keep pace with AI, which is a promising step in the right direction.”

Additionally, effective IM strategies can lead to a meaningful return on AI investments, according to the survey.

• Organizations with mature IM strategies are 1.5x more likely to realize benefits from AI than those with less mature strategies.
• Despite this correlation, not enough organizations acknowledge the value of information management in AI success, with only 17% recognizing a robust IM strategy as the most effective way to ensure ROI on their AI investments.

"We are pleased to support this important study, which confirms the importance of an information management strategy to successful AI implementation and operationalization,” said Tori Miller Liu, CIP, President & CEO, Association for Intelligent Information Management (AIIM). “The data shows that organizations who invest in their information management strategy can realize the benefits of AI faster than organizations who lack a comprehensive information management strategy.”

This year, organizations are significantly increasing their investments in AI, with 83% planning to increase their AI spending and 79% investing in licensed AI such as Copilot for Microsoft 365. In addition, 60% of organizations plan to allocate at least a quarter of their technology budget to AI in the next 5 years. However, less than half of organizations (46%) offer AI-specific training, hindering their employees from safely using and optimizing this technology.

“As organizations increase their investment in AI, a comprehensive and holistic accountability program for both data privacy management and AI governance is even more critical," said Bojana Bellamy, President, Centre for Information Policy Leadership (CIPL). “In addition, good data management and AI governance must extend beyond legal compliance; it is essential for achieving long-term, sustainable business success and competitiveness, as well as for building public trust and maximizing the beneficial impact of AI."

To read the full AvePoint AI and Information Management Report, please visit avpt.co/AI-report-2024 

AvePoint conducted its AI & Information Management study in collaboration with AIIM, an organization dedicated to advancing the information management industry, and with CIPL, a global privacy and data policy think and do tank, to better understand the intersection of AI and information management and how information management practices were impacting AI implementation. By partnering with Qualtrics, AvePoint surveyed 762 respondents from 16 countries and regions, representing 10 different industries and varying organizational sizes. The survey was designed to target managers, directors, vice-presidents, and C-level executives, with primary or shared responsibility for AI implementation.

About AvePoint
Collaborate with Confidence. AvePoint provides the most advanced platform to optimize SaaS operations and secure collaboration. Over 21,000 customers worldwide rely on our solutions to modernize the digital workplace across Microsoft, Google, Salesforce and other collaboration environments. AvePoint's global channel partner program includes over 3,500 managed service providers, value added resellers and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-3 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC's website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations.

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FAQ

What did AvePoint (AVPT) announce in collaboration with AIIM and CIPL?

AvePoint announced the results of its inaugural AI and Information Management Report in collaboration with AIIM and CIPL.

What was the top challenge organizations faced during AI implementation according to the survey?

The top challenge organizations faced during AI implementation was issues with data quality.

How likely are organizations with mature IM strategies to benefit from AI compared to those with less mature strategies?

Organizations with mature IM strategies are 1.5x more likely to benefit from AI than those with less mature strategies.

How confident are organizations in using AI safely according to the survey?

Fewer than half of organizations are confident they can use AI safely today.

What percentage of organizations were concerned about AI safety before implementing AI?

71% of organizations were concerned about AI safety before implementing AI.