Recommendation engines, dynamic pricing, conversational CX—AI can unlock them all. But without trustworthy, unified data, AI simply amplifies bad patterns. Inspired by No AI without data: Why digital success starts with the basics, this episode separates signal from noise: the trillion-dollar cost of poor data quality, why “garbage in, garbage out” still rules, and the concrete steps leaders are taking to fix foundations before scaling AI. What You’ll Learn in This Episode: Why AI Fails (and How Data Breaks It) The “data goldmine” myth: lots of data ≠ useful dataHidden data factory: the staggering productivity drain of bad dataHow flaws cause AI misfires: overfitting, edge-case blind spots, spurious correlations, bias, and data driftThe Foundational Fix—A Practical Blueprint Audit reality: map systems (including shadow spreadsheets), ownership, and gapsProduct master cleanup: normalize attributes, units, categories, and hierarchiesCustomer master cleanup: dedupe, resolve parent/child relationships, link true buying historyTransaction discipline: capture why (promo, override, contract) to distinguish signal from noiseIntegration layer: ETL/ELT into a governed warehouse/lake for a single source of truthGovernance & DQM: owners, rules, SLAs, privacy (GDPR/HIPAA), and controls embedded in workflowsFrom Cost Center to Growth Engine Cut the hidden factory (free analysts & data scientists to build, not mop up)Enable reliable AI: pricing, recommendations, inventory optimization, service automationBuild resilience: continuous data quality, monitoring, and model retraining to counter driftOrganization & Culture—Making ‘Data First’ Stick Cross-functional accountability: sales, finance, ops, IT share metrics and incentives“Design for capture”: make high-quality data entry the easiest path for frontline teamsIterate in quarters, not years: ship foundations, measure lift, scale patternsKey Takeaways: You can’t buy your way around data quality—AI learns whatever you feed it.Clean product, customer, and transaction data is the fastest path to dependable AI.Governance turns one-off cleans into durable capability (and lower operating costs).Embed “why” at the point of entry to convert exceptions into learnable signals.Get the data right and everything improves: pricing, CX, supply chain, analytics.Subscribe for more pragmatic playbooks on turning AI ambition into measurable outcomes. Visit The Future of Commerce for deep dives on data governance, architecture patterns, and AI implementation. Share this episode with ops leaders, data teams, and execs who own revenue and risk.
