“88% of Companies Ignore Consumer Preferences: A Hidden Crisis Undermines AI and Competitive Advantage”

Vesselthe Data Permissioning Platform for Privacy Operations and Data Activation, announced the release “Dirty data, broken AI: The hidden threat that will derail your competitive advantage.” The research sheds light on a critical risk facing businesses using artificial intelligence (AI): the pervasive problem of “dirty data” and its potential to derail AI-based growth strategies.

“When businesses unknowingly feed their AI models with data collected without proper consent, they risk disrupting their entire AI operation – undermining insights, eroding customer trust and exposing themselves to significant regulatory risks.”

As AI becomes an essential tool for personalized marketing, decision making and business optimization, the foundation of its success depends on the quality of the data that drives it. Ketch’s study, based on an analysis of more than 1.7 trillion monthly data events across 134 leading US websites, reveals a surprising trend:

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• 88% of companies do not respect user opt-out preferences, nearly 40% of privacy-addicted trackers remain active despite opt-out signals. This widespread oversight not only erodes consumer confidence, but also exposes businesses to significant regulatory enforcement and reputational damage.
• 215 billion unauthorized “dirty data” events are generated every month, with more than 55% of collected data supporting marketing and personalization efforts. Much of this data is collected without proper consent or after opting out, creating a tainted flow of information that undermines AI-driven insights and exposes businesses to compliance risks.
• Dirty data infiltrates AI systems and threatens their integrity and increasing the risk of costly retraining. AI models depend on accurate and enabled data; contamination forces businesses to shut down operations, rebuild data feeds, and retrain models—introducing delays that competitors can exploit to gain market share.

“The effectiveness of AI is only as strong as the data it learns from,” says Vivek Vaidya, co-founder and CTO of Ketch. “When businesses unknowingly feed their AI models with data collected without proper consent, they risk disrupting their entire AI operation – undermining insights, eroding customer trust and exposing themselves to significant regulatory risks.”

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Ketch urges businesses to act decisively and protect their AI initiatives:

1. Stop AI projects powered by dirty data. Stop any AI initiatives using data that is not fully compliant or enabled to avoid operational and regulatory risks.
2. Review your consent management tools. Ensure your systems actively respect consumer preferences and prevent unauthorized data collection at every touchpoint.
3. Put technology in the driver’s seat. Make your CTO a privacy champion with engineers who lead implementation to align compliance with innovation.

“Dirty data is a double-edged sword – it erodes consumer trust and sabotages AI initiatives,” said Tom Chavez, co-founder and CEO of Ketch. “Companies that do not respect consumer preferences risk not only regulatory fines, but also the operational and competitive impact of the corruption of their AI models. Clean and enabled data is the cornerstone of sustainable growth and innovation driven by artificial innovation.”