76% say less than half of their CRM data is accurate and complete, which creates AI implementation failures and severe financial consequences
BOSTON, July 10, 2025 /PRNewswire/ — Validity released its The State of CRM Data Management in 2025 report, revealing a troubling disconnect: 90% of organizations recognize CRM data as the cornerstone of their operations, yet 76% said less than half of their organization’s CRM data is accurate and complete.
Based on insights from 602 CRM users and administrators across the U.S., U.K. and Australia, the findings expose critical vulnerabilities as businesses rush to implement AI solutions built on unreliable data foundations. For example, 45% of companies’ CRM data isn’t prepared for AI, despite 29% of respondents at the VP-level or above feeling pressure to use AI as a replacement for high-stakes initiatives like hiring.
Industry analysts suggest we’re entering the era of “good enough” data, where organizations settle for functional rather than flawless. As AI tools magnify existing data issues, organizations face a looming data crisis threatening to undermine critical business initiatives. In this report, companies admit to lacking data accuracy, completeness, consistency and timeliness. Yet, only 32% admit they struggle with data quality issues, revealing the deeper structural problem: “Good enough” today will create bigger problems tomorrow — and with this poor data quality comes severe and measurable financial consequences:
- 37% of organizations lose revenue as a direct result of data quality.
- 1 in 4 companies experience a 20% or greater drop in annual revenue.
- Companies lose an average of 16 sales deals per quarter as a result of poor-quality data.
- 37% report delayed key revenue-generating initiatives due to bad data.
“There’s a growing gap between confidence and reality when it comes to data quality,” said Cynthia Price, SVP of Marketing at Validity. “Organizations are facing serious data and process issues, but aren’t acknowledging them, and they’re layering AI on top without addressing the foundation. Leaders need to step in early to align teams and set clear expectations for data management. Companies that fix this disconnect early will stay competitive. Those that don’t risk making costly AI investments that reinforce existing problems.”
CRM data isn’t shaped solely by technology and processes — leadership plays a major role. While 68% of executives believe their teams have adequate data, frontline data users paint a starkly different picture:
- Workers spend, on average, 13 hours per week hunting for basic information in the CRM.
- 37% of staff regularly fabricate data to tell leaders what they want to hear.
- Only 19% of CRM users say leaders actually change course when presented with countering data, despite 84% of leaders claiming they do.
With 54% of organizations already deploying generative AI tools, they’re building sophisticated systems on these shaky foundations. The rush to implement AI doesn’t address underlying data quality issues; rather, it amplifies them exponentially. Unfortunately, organizations continue choosing tactical Band-Aids over strategic solutions, with 57% of respondents saying their organization has implemented manual data cleaning efforts while cutting investment in dedicated data quality personnel. Only 18% of organizations without a full-time employee responsible for CRM data quality plan to hire one in the next twelve months, a 56% decrease from 2024.
A dangerous illusion of “progress” is masking deeper structural problems spanning governance gaps, system fragmentation and measurement blind spots, which may ultimately determine whether AI initiatives deliver transformational value or amplify data dysfunction.
The data is clear: Organizations are operating on fundamentally flawed assumptions about their data capabilities. Beyond AI, go-to-market teams increasingly rely on CRM data for automation, campaign personalization and dynamic content, where data quality not only jeopardizes individual sales but also damages brand reputation through irrelevant messaging and broken customer experiences. This growing dependence on data-driven marketing means reliable data has never mattered more.
The State of CRM Data Management in 2025 report is available here.
About Validity
For over 20 years, tens of thousands of organizations throughout the world have relied on Validity solutions to achieve end-to-end marketing success—using trustworthy data as a key advantage. The Validity flagship products—DemandTools, BriteVerify, Litmus, Everest, GridBuddy Connect, and MailCharts—are all highly rated solutions for CRM data quality, email performance, and campaign analytics. These solutions deliver smarter campaigns, more qualified leads, more productive sales, and ultimately faster growth. For more information, visit Validity.com and connect with us on LinkedIn and X.
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SOURCE Validity