Not all data is visible. And not all risks make themselves known.

As privacy laws become more stringent and data usage grows, businesses must now manage unstructured information, not just their IT departments. So how do you find it? And more importantly, how do you know what to keep, what to delete, and what could cost you?

What is dark data, and why does it matter?

According to Gartner, dark data is the information that organisations collect, process and store during business activities but fail to use for other purposes. This data carries risk, and is often buried in emails, legacy systems or cloud drives. It often exists in silos, scattered across various systems, making it challenging to access or make use of.

Without proper classification, dark data may contain personal, contractual or financial information that falls under the scope of various regional data protection laws, such as Europe’s General Data Protection Regulation, the Kingdom of Saudi Arabia’s PDPL (Personal Data Protection Law) and America’s California Consumer Privacy Act (CCPA).

This unutilised information also holds significant promise. It can help businesses use more of their data and reduce risks from having it spread out and duplicated.

Cost and compliance

Leaving dark data unattended can be both expensive and legally compromising. Storing this unused information incurs unnecessary costs, especially as data volumes continue to grow.

Beyond storage, there are significant compliance risks. Regulations impose strict rules on how personal data is handled, and dark data often contains sensitive information that can lead to hefty fines if mismanaged or exposed during a breach. For example, responding to Data Subject Access Requests (DSARs) can become a slow and costly process when dealing with vast amounts of unclassified dark data, turning routine tasks into major challenges.

Breaches involving forgotten data can severely damage a company’s reputation and lead to substantial legal and financial penalties.

AI and customer insights

While dark data poses risks, it also holds immense untapped value. This hidden information can be a treasure trove for understanding customer behaviour, market trends, and operational efficiencies. By bringing dark data to light and integrating it into your analytics, you can gain deeper insights that are not available from structured data alone.

This comprehensive view can provide a significant competitive advantage, particularly when it comes to training Artificial Intelligence (AI) models. The more diverse and comprehensive the data used to train AI, the better its performance in predictive analytics, decision-making, and even innovation.

Analysing old customer service records, forgotten emails, or sensor data can reveal hidden patterns and unspoken customer sentiments, leading to more personalised customer experiences and new revenue streams.

Data Governance

Whether your goal is to mitigate risks or unlock new value, data governance and mediation are key. A well-defined data governance framework allows organisations to classify, manage, and leverage their data effectively. This involves implementing strategies for data deletion and anonymisation, which are crucial for reducing both costs and compliance risks.

Regularly identifying and securely deleting obsolete or redundant data means you’re not paying to store unnecessary information and minimises your attack surface. Anonymising sensitive data allows you to extract valuable insights without compromising privacy. Managing data and records this way isn’t just about compliance or profit; it’s also a strong supporting role for achieving Environmental, Social, and Governance (ESG) objectives. By reducing unnecessary data storage, you can lower your carbon footprint, contributing to environmental sustainability.

Responsible data handling, including privacy protection and ethical AI training, aligns with social responsibility and good governance practices, enhancing trust and credibility with stakeholders, investors, and regulators. So, this all-round approach helps your organisation work better, more ethically, and with a clearer plan, turning any old data headaches into real strengths.

To bring your dark data into the light, Infotel UK Consulting can help you develop and implement strong data governance strategies. Our expertise can assist your organisation in transforming hidden risks into valuable opportunities, supporting compliance, reducing costs, and leveraging your data for competitive advantage and ESG success.

Reach out to Infotel UK Consulting today to learn how we can support your data management journey.