Why Removing Data Silos Is Key To Unlocking AI Value
Feb 03, 2025 - forbes.com
Modern cloud-based systems are essential for eliminating the costly overhead associated with fragmented data and silos, which hinder AI implementation in businesses, particularly in banks. Data silos cost businesses significantly, with a McKinsey study estimating losses at $3.1 trillion annually due to lost revenue and productivity. To harness data effectively and drive revenue, businesses must integrate AI capabilities into their existing systems. Legacy architectures, designed for less complex data environments, are a major obstacle to AI adoption. Modern cloud solutions offer the integration needed for AI to function effectively, enabling informed decision-making and value delivery.
For banks, upgrading data architecture and embracing embedded AI in cloud-based platforms can enhance organizational agility and compliance. This approach allows banks to adopt AI at their own pace while maintaining a unified data set. Additionally, breaking siloed thinking among employees is crucial for successful AI strategies, requiring cross-team collaboration to align business and technology needs. Addressing data silos with urgency is vital for laying the groundwork for modern banking and unlocking AI's full potential.
Key takeaways:
Modern cloud-based systems eliminate the expensive overhead of fragmented data and silos, embedding AI capabilities into existing solutions.
Data silos cost businesses significantly, and leveraging data properly with AI can drive revenue and improve customer and employee experiences.
Upgrading data architecture is crucial for banks to handle AI at scale and unlock its full potential.
Breaking siloed thinking and fostering cross-team collaboration are essential for successful AI implementation in banking.
