New research by Amplitude, Inc. has revealed that although over half of businesses in Australia use data-based insights to back up decisions most of the time, less than one in four Aussies trust data more than gut instinct. Nearly one in five say their company wishes it was data-driven, but the reality is far from it. Another 30 per cent say their company is getting better at data, but has a ways to go.
The study, which involved feedback from over 1,000 Australian professionals, found despite the rising use of data, gut feelings continue to play a substantial role in decision-making processes. Just 23 per cent of survey respondents said they trust data more than their instincts to make decisions, while well over half (54 per cent) said they balance both data and instincts equally when making important decisions. This means a majority are not prioritising data-based insights over gut feel.
Nearly 61 per cent of those polled said they prioritise other factors over data when making decisions, with 13 per cent of respondents instead putting more credence in what they think their manager, team, or superiors want, while 12 per cent do what their gut tells them. Only 39 per cent view data as the most important factor when making a business decision, which could be holding Aussie organisations back.
Less than half (48 per cent) of the professionals interviewed said they are using data to better understand their customers, while just 43 per cent said they use data to measure the impact of their work. Notably, 46 per cent said they use data to support their existing opinion, further highlighting the ongoing reliance on instinct and the risk of confirmation bias.
“The disconnect we’re seeing between the growing usage of data for business decision-making and the continued reliance on gut feel highlights a chasm between analysis and instinct,” said Mark Drasutis, head of value, Asia Pacific and Japan, Amplitude. “Creating a culture of data democratisation is essential for businesses to get the most out of their data. It involves education, implementing tools, and empowering employees to ask questions about data. This investment is well worth the effort, as teams will be able to respond to customer needs faster and more efficiently.”
Given the continued reliance on instinct over data, it may come as little surprise that over 40 per cent of respondents indicated they either didn’t trust the accuracy of the data their company is using (21 per cent) or were unsure about it (20 per cent), leaving just over half (59 per cent) saying that they trust their business data.
“The lack of trust in data is likely exacerbated by misalignment across teams, with marketing, data, product, and business stakeholders often working from different interpretations rather than a shared source of truth. Breaking down walls between teams, aligning outcomes, unifying data, and aligning around delivering value to customers at every step of their journey is the best way to converge teams, tools, and mindsets,” said Drasutis.
Challenges related to learning and using analytics tools could be key barriers to using data more at work. Forty three per cent of respondents say their company’s analytics tools are difficult to understand or require a lot of training. Nearly one in three respondents indicated that they feel uncertain (15 per cent), overwhelmed (8 per cent), or unqualified (6 per cent) about using data at work. Without a common framework for accessing and interpreting insights, employees may struggle to make data-driven decisions confidently.
This disconnect extends to leadership, with 50 per cent of those surveyed believing there is a gap between how employees use data and how executives expect it to be used. However, the research also points to a growing convergence of teams across business functions, fostering stronger alignment and greater trust in data. By breaking down silos and unifying around a single source of truth, businesses can enable faster, braver, and more customer-centric decision-making, helping to close the gap between intent and action.
The research also revealed that:
- 38 per cent of respondents agreed that being data-driven is essential and 36 per cent say they would use data more if they had tools that were easier to use.
- 21 per cent indicated they would use data more if they had a better way to extract insights from it.
- Only 15 per cent of respondents said they use data all the time, and 7 per cent say the same is true for their colleagues.
- 21 per cent of respondents think top management and the board use data to make business decisions all the time, while 51 per cent think they use it most of the time.
- 51 per cent of respondents said inconsistent use of data creates challenges for their team.
- 38 per cent of respondents suggested that it takes a few hours to get the data-based insights they need for their role, compared to
- 10 per cent who said it only takes a few minutes.
- 29 per cent of respondents said they would use data more if they had access to higher-quality data.
