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New Hitachi Vantara report finds 78% of Australian organisations say data complexity is rising quickly, driven by growth in data, platforms and AI, straining governance and security

As Australian enterprises race to adopt AI, more than half (56%) of organisations continue to operate with weaker data infrastructure practices, highlighting the data readiness challenges contributing to an estimated $154 billion in wasted global AI investment each year, according to a new report from Hitachi Vantara, the data storage, infrastructure and hybrid cloud management subsidiary of Hitachi Ltd. (TSE: 6501). The research shows that AI is rapidly exposing long-standing gaps in data management, governance and security rather than masking them.

Click here to download the Hitachi Vantara State of Data Infrastructure Report

The report surveyed over 1,200 C-level executives and IT leaders across 15 countries, including 80 respondents across Australia. It found that 78% of Australian organisations say the complexity of their data infrastructure environments is growing rapidly or too quickly to manage.

As data environments grow more complex, organisations are finding it harder to maintain visibility, control and accountability across their systems. And with businesses expecting investment in AI to grow by 69% over the next two years, complexity challenges are intensifying, putting greater strain on security and data governance.

Among Australian business and IT leaders:

• Only 49% report having predictive or automated infrastructure operations, limiting their ability to manage complexity;

• 58% say the complexity of their data makes identifying a data breach more difficult;
• 54% fear a critical data loss would be catastrophic; and
• 50% say their systems are complex enough that executives would lose sleep if they understood the risks.

“AI is raising the bar for how organisations govern and manage their data,” said Octavian Tanase, chief product officer, Hitachi Vantara. “As AI becomes more embedded in business operations, leaders are realising that governance, visibility and control matter just as much as performance. As a result, we’re seeing that organisations that have invested in automation and optimised data infrastructure are moving faster with confidence, while others are seeing complexity widen the gap between those that can manage it effectively and those that cannot.”

Octavian Tanase, chief product officer, Hitachi Vantara

The Great AI Divide

AI adoption is nearly universal, with 95% of organisations using, piloting or exploring AI, but readiness to scale and realise value varies widely. The findings reveal a clear divide between organisations that have built strong data management foundations and those struggling to keep pace as AI adoption accelerates. The difference is not whether companies are using AI or how large a company is, but whether their data environments are structured, governed and supported by leadership well enough to scale.

44% of organisations are considered data-mature, or leaders, defined as having managed or optimised data practices. Meanwhile, 56% fall into defined, emerging or fragmented stages of data management, or data laggards, meaning their data environments lack the structure, automation and consistency required to support AI initiatives at scale.

In Australia, that gap is reflected directly in AI outcomes and overall success:

• While 71% of organisations have had success using AI, 36% say the use of incorrect data and 28% point to a lack of processing power as the top reasons behind unsuccessful AI projects.
• Data quality was the most commonly cited driver of successful AI initiatives, with 42% of organisations attributing successful AI projects to the use of high-quality data.
• 35% of organisations say that AI is now a critical part of their function.

Data-Mature Organisations Show Clear Differences in Data Infrastructure Readiness

Globally, the report found that organisations with strong data foundations demonstrate shared practices that set them apart, particularly when it comes to leadership alignment, infrastructure modernisation and operational discipline.

Leader companies are significantly ahead in automation, with 81% of organisations with stronger data foundations in Australia operating predictive or automated infrastructure, compared with just 25% of organisations with less mature data practices. Additionally, 73% of data-mature organisations in Australia report having sustainable design and built-in resilience, compared with just 18% with less mature data practices, reflecting an infrastructure approach designed to support long-term growth, efficiency and risk reduction as AI adoption expands.

The research further underscores the importance of leadership engagement. While 95% of Australian organisations say they need outside help with data infrastructure, many continue to struggle to translate that need into coordinated action, highlighting a gap between recognising the challenge and executing a long-term data strategy.

“As AI becomes central to how every business operates, leadership has to treat data foundations as a strategic requirement, not just a technical concern,” said Sheila Rohra, CEO, Hitachi Vantara. “This report makes clear that AI succeeds when the data behind it is trusted, well-governed and resilient. Our role is to help organisations simplify the management of their environments, strengthen governance and make sure their data strategy can support long-term growth.”

For more information on how Hitachi Vantara is helping customers provide a data-driven approach to modern data infrastructure, visit www.hitachivantara.com.

Additional Resources

• Report: Hitachi Vantara State of Data Infrastructure Report
• Blog: Operationalizing Agentic AI with Hitachi iQ Studio and NVIDIA Nemotron 3
• Press Release: Hitachi Vantara Launches Virtual Storage Platform One Block High End Storage to Power the Next Era of AI and Mission-Critical Workloads
• Blog: From Science Fiction to Factory Floor: The Physical AI Revolution Takes Shape
• Webinar: Build Modern AI-Ready Infrastructure Without Starting Over
• Blog: The End of Data Infrastructure as We Know It. And That’s a Good Thing.
• Press Release: U.S. Data Concerns Soar as AI Surges – 37% of IT Leaders Identify Data Quality as Major Barrier to AI Success

Connect With Hitachi Vantara

About Hitachi Vantara

Hitachi Vantara is transforming the way data fuels innovation. A wholly owned subsidiary of Hitachi Ltd., Hitachi Vantara provides the data foundation the world’s leading innovators rely on. Through data storage, infrastructure systems, cloud management and digital expertise, the company helps customers build the foundation for sustainable business growth. To learn more, visit www.hitachivantara.com.

About Hitachi, Ltd.

Through its Social Innovation Business (SIB) that brings together IT, OT(Operational Technology) and products, Hitachi contributes to a harmonised society where the environment, wellbeing, and economic growth are in balance. Hitachi operates globally in four sectors – Digital Systems & Services, Energy, Mobility, and Connective Industries – and the Strategic SIB Business Unit for new growth businesses. With Lumada at its core, Hitachi generates value from integrating data, technology and domain knowledge to solve customer and social challenges. Revenues for FY2024 (ended March 31, 2025) totalled 9,783.3 billion yen, with 618 consolidated subsidiaries and approximately 280,000 employees worldwide. Visit us at www.hitachi.com.

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