Two-thirds of SaaS AI projects could be undermined by bad data

When it comes to our own health, we know that we are what we eat. The types of food we take in is crucial – to our energy levels, our vitality and our wellbeing.

The same is true when it comes to Artificial Intelligence and Machine Learning projects. The quality of the data we put in to training algorithms is key to the quality of outputs.

As the old saying goes, garbage in, garbage out.

So it is concerning that up to two-thirds of SaaS companies investing in AI could be training their models on poor-quality data that undermines accuracy and could lead to unfair or discriminatory outcomes.

Today, Panintelligence published a new report – AI Value or Vanity? How SaaS companies are approaching innovation – informed by extensive research with SaaS companies during July and August 2023.

Our report, created to help SaaS CEOs and product leaders navigate this landscape, reveals a rush to AI:

• Three-quarters (76%) of SaaS companies are currently using or testing AI in their businesses.
• Nearly half (43%) are already using it in their products.
• More than a third (38%) have launched Generative AI capabilities in the last 12 months.
• Just 2% of SaaS companies said they had no plans to use AI.

But most of those investing in AI are failing to look hard enough at the quality of the data they are feeding their models with. Just 28% of SaaS companies – around a third of those developing AI functionality – are working towards the kind of data quality that allows really robust AI models.

Panintelligence’s research suggests the AI surge will continue into 2024, with more than half (56%) of SaaS companies planning new AI innovations in the next six months.

In addition to further Generative AI implementrations, we expect predictive analytics, deep learning and Causal AI to grow in prominence.

AI hype is now a reality in SaaS. But neglecting data quality today could cost SaaS companies dearly tomorrow, and add to the most significant challenge companies see limiting the success of AI in SaaS: regulation.

Download our report today to understand how your peers across the SaaS industry are approaching AI.