If Data is the New Gold, Make Sure Yours is Legit
In the swiftly evolving landscape of 2024, the impact of Artificial Intelligence (AI) on businesses is reaching its peak, and we’ll see a massive change in how data is managed in the interest of visibility this year. We’re seeing the end of an era in which hazy or incomplete data would be used to guide strategic choices. As AI becomes increasingly useful, business leaders must prepare to navigate this data-rich environment effectively.
At Penny, we’re on a mission to help adtech businesses end the pain and high costs of sorting through and resolving the financial data chaos associated with an ever-growing set of transactions across multiple payees and budgets. We put together this short list of ideas to help you identify, address, and mitigate potential pitfalls in managing data chaos - financial and beyond - across your organization.
Demand timely, high-quality data
Your business moves at the speed of light - why does financial data reconciliation still take a month? In this AI-driven era, businesses reliance on high-quality, real-time data will increase rapidly. However, financial data often lags behind other operational data, creating disparities and hindering timely decision-making. Not seeing real time data when you are doing hundreds of thousands of transactions a month impacts your ability to make timely and effective business decisions. It’s time to invest in advanced data analytics tools that streamline financial reporting and integrate with real-time systems to bridge the gap between financial and operational data.
Build out research + verification
As AI proliferates, discerning authentic data from misleading or manipulated information will be imperative. It’s time to consider building out a research and verification division within your business focused on data analysis. This can start out as a single person within a small business using tools to verify authenticity and validity. Over time, this may grow into a team of people focused on identifying and filtering out inaccurate information to ensure data authenticity and integrity.
Prepare for regulatory changes
In the next five years, government bodies like the Financial Crimes Enforcement Network (FinCEN) will begin to look at marketing spending more closely. Be ready for heightened government regulations by demanding meticulous record-keeping and clean data practices now. Beyond FinCEN, compliance requirements will intensify in other ways. To stay ahead, foster a culture of transparency and compliance within your organization, leveraging technology to automate data governance processes and ensure adherence to evolving regulations.
Implement data governance frameworks
As businesses become more data-driven, establishing comprehensive data governance frameworks will become more and more advantageous. Such frameworks define data ownership, quality standards, and privacy measures. Deploy data governance tools that monitor, protect, and enforce data policies across your organization. Educate employees on their roles in maintaining data integrity and security to prevent chaos caused by data mishandling or breaches.
Invest in continuous learning and adaptation
The pace of technological advancements requires continuous learning and adaptation. Encourage a culture of learning within your organization to equip teams with the skills needed to leverage AI effectively. Provide training on data analytics, AI ethics, and emerging technologies to empower employees in navigating the evolving data landscape.
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As 2024 brings the full weight of AI to businesses, the era of decisions based on incomplete or inaccurate data is unequivocally behind us. If you want to learn more about how Penny’s spend management and payment processing platform, specifically tailored to handle the high-volume-transaction processing of the adtech industry, can help you solve financial data chaos in your business so you can thrive in the era of AI-driven decision-making.