Nearly 4 in 10 companies spend at least 25% of their AI budgets fixing data problems instead of driving innovation. Fivetran's new report, The AI Tax: The Hidden Cost When AI Isn’t Connected to Your Data, reveals how fragmented data systems, custom integrations and ongoing maintenance are quietly draining AI budgets, delaying projects and limiting returns.

Based on a global survey of 500 data leaders across the US, EMEA and APAC, the report examines the hidden costs of disconnected data infrastructure and what separates organizations achieving stronger AI returns from those struggling to move projects forward.

Key takeaways include:

• The AI tax is consuming significant budgets: 84% of organizations spend at least 10% of their AI budgets addressing data problems, while 39% spend 25% or more.
• Data inefficiencies are delaying AI outcomes: Organizations spending at least 25% of their AI budgets fixing data problems are five times more likely to experience significant project delays than those spending less than 10%.
• Fragmented infrastructure is driving up costs: 53% of organizations relying on custom integrations spend at least a quarter of their AI budgets on data problems, compared with 40% using standardized approaches.
• Lower data costs are linked to stronger AI returns: 62% of organizations spending less than 10% of their AI budgets on data problems exceeded their ROI expectations, compared with just 40% of those spending 50% or more.

Download the full report to understand the true cost of disconnected data and how a more open, connected data foundation can help organizations spend less time fixing problems and more time realizing the value of AI.

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