Why Poor Data Quality Is the Biggest Barrier to AI Success in Health Care

AI’s success in health care depends on data quality. Flawed clinical data limits effectiveness, causing errors, inefficiencies, and financial risks despite advanced algorithms.

Categorized in: AI News Healthcare
Published on: May 12, 2025
Why Poor Data Quality Is the Biggest Barrier to AI Success in Health Care

Health care’s data problem: the real obstacle to AI success

AI holds great promise for health care, but its success hinges on one critical factor: data quality. Regardless of how advanced AI algorithms become, their effectiveness is limited by the quality of clinical data they work with.

AI in health care: Promise meets reality

Large language models and conversational AI are gaining traction in health systems, helping synthesize patient information and streamline workflows. Many clinicians expect these tools to reduce documentation burdens and improve decision support. Yet, as AI-assisted documentation tools become more common, a key issue is clear: the outputs are only as good as the input data.

Health care leaders are increasingly concerned that flawed clinical data undermines the reliability of AI-generated content, making it less useful in practice.

The data quality challenge

Several persistent problems stand out:

  • Foundation of flawed data: Many AI efforts are built on datasets riddled with inconsistencies, errors, and missing information.
  • Increased workload paradox: Instead of easing workloads, some AI tools add tasks as clinicians must verify and correct AI outputs.
  • Structured data deficiencies: Conversational AI produces narrative text well but struggles to generate the structured data needed for compliance, quality tracking, and analytics.
  • Interoperability obstacles: Even with standards like FHIR, sharing problematic data between systems perpetuates errors and limits care coordination.

The cost of poor data quality

Poor clinical data affects both finances and patient care. Common consequences include:

  • Medical errors and increased financial risk
  • Denied claims due to coding inaccuracies
  • Barriers to interoperability and continuity of care
  • Inefficient clinical workflows
  • Reduced reimbursement capture
  • Weakened clinical decision support effectiveness

Toward solutions: Addressing the data quality problem

Health care organizations are adopting targeted strategies to improve data quality:

  • Data validation and normalization: Implementing tools that validate and clean clinical data by fixing bad mappings, duplicates, incorrect entries, and poor coding. These tools handle structured and unstructured data alike.
  • Clinical terminology enhancement: Addressing inconsistencies in local codes and legacy systems by standardizing mappings, validating custom terms, updating historical concepts, and maintaining terminology standards.
  • AI and evidence-based algorithms: Using AI combined with evidence-based rules to normalize historical data, match related diagnoses, recategorize errors, and correct or fill missing codes.

Strategic implementation roadmap

The path to successful AI in health care starts with fixing data quality issues. Organizations that focus on creating a trusted, accurate clinical data foundation will get the most value from AI investments.

Generating text alone isn’t enough. The industry needs solutions that convert conversational interactions into high-quality, structured clinical data. This data must be reliable for patient care, regulatory compliance, and analytics.

By addressing these foundational problems, health care can build AI systems clinicians trust, improve patient outcomes, and achieve meaningful efficiency gains. The future of health care AI depends on data quality just as much as algorithm sophistication.


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