Are your industrial AI initiatives stuck? Start with master data

Organizations often overlook the fact that master data sits at the center of every operational and financial decision. It defines which assets, products, and manufacturing processes exist, how products are made, what condition they are in, and how they perform. Without this foundation, companies operate on incomplete information, weakening both efficiency and competitiveness.

The central role of master data doesn’t change with the rise of AI and analytics. These technologies can amplify efficiency and provide deeper insight, but only when the underlying master data is reliable, consistent, and accessible to AI. Without that solid foundation, even the most advanced AI systems will fail to deliver meaningful results.

“Some companies that are eager to adopt AI have such a low digital maturity that it’s simply not possible for them even to begin. The problem isn’t the tools, but missing, inconsistent, or inaccurate information,” says Etteplan’s Lina Bäckman, Senior Service Solutions Manager, specialized in Asset Information Management and Data.

Regulatory scrutiny is making this gap harder to ignore. New EU regulations such as the Digital Product Passport (DPP) and NIS2, extensive safety requirements, and strict documentation demands require companies to produce and maintain accurate information, sometimes at a moment’s notice.

“When authorities request data following an accident, many companies struggle to locate the necessary information. They end up spending excessive amounts of time gathering data that should already be readily available. No new technology or software can solve this issue. Only effective master data management can”, Lina Bäckman notes.

The financial impact of poor digital maturity is far from abstract. According to many studies, employees in industrial companies commonly spend 20–30% of their time searching for, validating, or recreating information. Major asset projects can suffer unnecessary extra costs if drawings need to be redone, components are built incorrectly, or installations need rework. Errors could be built into the asset’s entire lifecycle.

When organizations finally take determined steps to improve their master data, the benefits are immediate and measurable. For example, one electric grid operator had been missing out on state compensation for infrastructure upgrades because crucial asset information was scattered and incomplete.

“After we helped them reconstruct their asset registry, they suddenly received the compensation they were entitled to because they could prove what they had to the authorities,” Bäckman explains. “The data existed, but without structure, it held no value. Once organized, it became money.”

Still, tools alone cannot fix the problem. True transformation begins with raising digital maturity, creating governance for data, and building a culture that cherishes the value of master data.

Clear responsibilities and disciplined processes form the backbone of sustainable digital maturity. This philosophy aligns with the ISO 55 000 standard, which emphasizes data-driven decision-making to optimize asset investments and maintenance. Ultimately, the question for industrial leaders is not whether data has value, but whether they are capturing it.

With regulatory demands tightening and digital technologies advancing, organizations that invest in robust master data management gain both operational clarity and strategic advantage. Those who fail to act risk falling behind in an environment where high-quality data defines competitiveness.

Curious to find out more about master data and its immense impact on industrial operations?