AI Agents Demand High Quality Data for Success

Artificial intelligence is transforming business operations, with AI agents emerging as the latest innovation. Companies across industries—from marketing to customer service—are rapidly adopting these agents to streamline decisions and boost productivity. However, their success hinges on one critical factor: data readiness.

The AI Agent Boom

• Google and Microsoft have integrated AI agents into search functionalities.
• Boston Consulting Group predicts a 45% CAGR growth for the AI agent market over the next five years.
• Gartner estimates 80% of customer service queries will be handled by AI agents by 2029.

The Data Dilemma

Despite the hype, 78% of companies are unprepared for AI agent deployment due to poor data quality, per MIT Technology Review Insights. Examples of failures include:

• Air Canada reimbursed a customer after its chatbot offered a nonexistent discount.
• A tech company faced backlash when an AI agent mistakenly canceled subscriptions.

The Solution: Identity Resolution

AI agents must leverage real-time, unified customer data to avoid errors. Key requirements include:

1. Unified Data: Integrate touchpoints from eCommerce to CRM.
2. Accuracy: Resolve inconsistencies across channels.
3. Context: Tailor data views for marketing vs. support needs.
4. Governance: Ensure compliance with privacy regulations.

Competitive Advantage

High-quality data isn’t just infrastructure—it’s a differentiator. Companies investing in robust data foundations will:

• Enable better personalization.
• Reduce manual data prep.
• Foster trust in AI-driven decisions.

The Bottom Line

AI agents promise efficiency, but their effectiveness depends on data quality. Businesses must prioritize data readiness to avoid costly pitfalls and unlock transformative potential.

For more on AI tools, explore TechRadar’s CX tools guide.