New Report from The Modern Data Company Finds the Data Activation Gap Is Holding Back Enterprise AI and Decision-Making

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The Modern Data Report 2026 reveals that 68% of data practitioners say their data isn't reliable enough for AI, and 87% say better data (trusted, contextual, and easily accessible across teams) would improve decision speed.

PALO ALTO, CA / ACCESS Newswire / February 4, 2026 / The Modern Data Company, creator of DataOS®, today released The Modern Data Report 2026: The Data Activation Gap, the second installment of its annual research series conducted by the Modern Data 101 community. Based on responses from more than 540 data practitioners across industries and around the globe, the report examines why enterprise data continues to fall short of powering everyday business decisions and AI at scale, even as organizations invest heavily in data platforms and expand AI initiatives.

The findings show that the challenge is not a lack of tools or ambition, but activation: ensuring data is discoverable, contextual, and trustworthy at the moment it's needed for decisions and AI workflows. Without these foundations, enterprises generate insights but struggle to translate them into consistent action or measurable impact.

Key findings include:

• 84% say they encounter conflicting versions of the same metric, with more than one-third experiencing this regularly.

• 68% say their data is not clean or reliable enough for AI use cases.

• 46% report they do not fully trust the data used for business decisions.

• 89% rank finding the right data among their top three most time-consuming tasks, while 62% say actual analysis takes the least amount of their time.

"Across the industry, it's clear that many AI initiatives are struggling to move beyond experimentation," said Saurabh Gupta, CEO of The Modern Data Company. "This research helps explain what's holding them back. What we're seeing isn't a problem with AI algorithms, it's a data activation problem, especially lack of context. Enterprises have invested heavily in data platforms and AI tools, but too often the data feeding those systems can't be accessed, understood, or trusted when real decisions need to be made. AI doesn't solve that gap, it exposes it. Closing the activation gap by ensuring data has full context is what turns pilots into production."

Practitioners are clear about where progress should begin. Eighty percent of respondents identify a unified semantic layer with standardized definitions as the single most important enabler of AI value, ranking it ahead of better AI models, additional tools, or more advanced features. Without a shared understanding of what business metrics mean, neither people nor AI systems can act on data consistently.

When these foundations are in place, the business impact is clear. Eighty-seven percent of respondents say faster, more reliable access to high-quality data improves decision-making speed, 78% report increased confidence in decisions, and 66% point to improved business KPIs. Together, the findings position semantic alignment and core data foundations not as technical nice-to-haves, but as strategic drivers of business performance.

The Modern Data Report 2026: The Data Activation Gap explores these themes in depth across business impact, AI readiness, day-to-day data realities, discovery challenges, collaboration dynamics, platform limitations, and the growing demand for converged data foundations.

The full report is available for download at https://www.themoderndatacompany.com/resources/the-modern-data-report-2026.

For more information about The Modern Data Company and DataOS:

www.themoderndatacompany.com

www.themoderndatacompany.com/dataos

For more information on Modern Data 101: www.moderndata101.com.

About The Modern Data Company

The Modern Data Company is redefining data management for the AI era. The company's flagship platform, DataOS, serves as the foundational analytics and AI-ready data layer for any data stack. This unified platform gives enterprises the ability to build and deploy data products, simplify data management, and optimize data costs. DataOS frees teams to focus on driving real value from data, accelerating the journey to becoming a truly data-driven and AI-enabled organization.

About Modern Data 101

Modern Data 101 is a community and publication for anyone who works with data, including team leaders, platform builders, and data analysts. In a world of countless tools, trends, and templated thought leadership, we slow things down to ask deeper questions: Why was this actually built? And what business problem can it solve? We explore architecture, semantics, and organizational design, the invisible foundations that determine whether data works.

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SOURCE: The Modern Data Company