SOCAR official: AI solution won't deliver expected results without proper data management

About 85 percent of digital initiatives fail due to poor-quality data, Elchin Musayev, Deputy Head of the Department for Procurement Development and Improvement at the State Oil Company of Azerbaijan (SOCAR), stated during the 2nd Caspian International Transport, Transit and Logistics Forum in Baku, Report informs.

"This is a global statistic. Data is crucial for all organizations. Today, most large organizations suffer not from a lack of data but from low-quality, inconsistent, fragmented, and incomplete data. Why is data important? Because organizations need a reliable database to make correct decisions. Digital tools and artificial intelligence can accelerate processes. But if you have inaccurate or poor-quality data, these technologies will only make flawed processes faster, resulting in poor outcomes. Therefore, in digital transformation, priority must be given to data governance and master data management. Without proper data management, no digital tool or AI solution will deliver the expected results," Musayev said.

He also emphasized that in digital transformation, the main issue is not technology but the human factor:

"I do not consider the application of technology the most difficult part of transformation. On the contrary, it is the easiest stage. Processes can be restructured according to organizational needs. But the most critical issue is people's mindset. In many organizations, employees resist new changes. That is why I view digital transformation more as a 'change management' process. For successful transformation, people's mindset must change, and they must be ready to accept new technologies."

The official further stressed that investments in technology should be accompanied by investments in training and skill development: "If employees lack the ability to work with new technologies, it will not be possible to use AI and other digital tools effectively. In my opinion, the priorities in digital transformation should be ranked as follows: first people, second processes, and only third technology."