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The Enduring Relevance of ‘GIGO’ in the Age of AI

By: Fero Labs Logo light
• March 2025
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In industrial settings, the principle of "Garbage In, Garbage Out" (GIGO) is more than a cautionary tale—it’s a pressing reality.

Poor data quality remains a significant hurdle for steelmakers to get the most out of their AI and digital tech stack, undermining the potential of technologies like Fero Labs to drive efficiency and innovation.

In the context of AI and machine learning, GIGO means that even the most sophisticated algorithms can't produce accurate results if they're fed poor-quality data. 

The quality of input data is paramount to achieving reliable, actionable insights.

Our CEO, Berk Birand, pointed out in a recent interview, "One of the big challenges that almost all data companies face is the garbage-in, garbage-out problem. This challenge is particularly acute in industrial settings, where data quality can vary significantly due to factors like sensor drift, equipment malfunctions, or inconsistent data collection practices.”

Let’s explore why this issue is particularly acute in the industrial sector, the problems it causes, and what leads to these data quality challenges.

GIGO in the Industrial Space: Challenges, Causes, and Consequences

Why is GIGO a Major Issue in Industrial AI?

Industrial environments are inherently complex, with data being generated from diverse sources such as sensors, machines, and enterprise systems. This complexity amplifies the risks associated with poor data quality:

  • High Stakes Decision-Making: AI models in manufacturing often guide critical decisions such as optimizing production processes or predicting equipment failures. Poor-quality data can lead to incorrect recommendations, resulting in costly downtime or suboptimal performance.
  • Physically Demanding Environments: Sensors and data collection devices in industrial settings operate under harsh conditions including extreme temperatures, vibrations, or dust which can lead to miscalibrations or outright failures.
  • Legacy Systems: Many industrial firms rely on outdated infrastructure that lacks interoperability with modern AI systems. This creates fragmented and inconsistent data flows.
  • Manual Data Collection: Many industrial firms still rely on manually tracking and collecting data across many of their workflows and processes. This can lead to differences in detail and accuracy from one worker to the next. It often leads to incomplete data as well.
     

Problems Caused by Poor Data Quality

When low-quality data infiltrates industrial AI systems, the consequences can be severe:

  1. Operational Inefficiencies:
    • Faulty sensor readings or incomplete datasets can lead to incorrect process optimizations. For example, a mining company attempting to optimize equipment usage found that a critical sensor had been broken for months, rendering their AI model ineffective. 
  2. Inaccurate Predictions:
    • Predictive maintenance models rely on historical data to forecast equipment failures. Missing or biased data can result in false negatives (missed failures) or false positives (unnecessary maintenance), both of which are costly.
  3. Missed Opportunities:
    • Poor data quality often delays AI adoption. Many companies shelve high-value AI use cases because cleaning and organizing their data feels like an insurmountable task.
  4. Financial Losses:
    • Incorrect outputs from AI models can lead to wasteful resource allocation or production errors that directly impact profitability.
       

What Causes Data Quality Issues for Industrial Manufacturers?

Several factors contribute to poor data quality in industrial settings:

  1. Broken or Miscalibrated Sensors:
    • Physical wear and tear on sensors can lead to inaccurate readings. For instance, a healthcare supplier’s packing optimizer failed due to incorrect box dimensions provided by faulty sensors.
  2. Incomplete Data:
    • Missing values are common due to disruptions in data transmission or insufficient collection methods. This leads to skewed analyses and unreliable model training.
  3. Siloed Operations:
    • Lack of communication between business units and technical teams results in fragmented datasets that are difficult to harmonize for AI applications.
  4. Legacy Systems and Poor Interoperability:
    • Older systems often lack compatibility with modern standards, making it challenging to integrate data across platforms effectively.
  5. Unclear Data Ownership:
    • When no one is accountable for maintaining data quality, errors go unaddressed, perpetuating issues across projects.
  6. Biases in Data:
    • Historical biases embedded in datasets can skew AI outputs, leading to suboptimal or even discriminatory decisions. 

Fero Labs' Approach to Data Quality

At Fero Labs, we've developed innovative solutions to address data quality issues. They’re not a complete cure-all solution but they go a long way to advance data quality and readiness:

  1. AI-Guided Data Cleaning: Our software provides automated data cleaning and guided process mapping, accelerating the preparation process while maintaining accuracy.
     
  2. Flexible Optimization: We've implemented features that allow our system to adapt and optimize production even when faced with missing data. Learn more here.
     
  3. Data Classification and Labeling: We recommend the importance of organizing data into schemas and labeling it with metadata to facilitate AI model consumption.

The importance of data quality isn't just a Fero Labs concern—it's an industry-wide issue.

A recent study highlighted that poor data quality could lead to significant financial losses and decreased efficiency in AI projects. Furthermore, as we move towards more sustainable manufacturing practices, the quality of data becomes even more crucial in achieving both cost reduction and emissions targets.

As we continue to innovate in the field of industrial AI, we remain committed to addressing the GIGO challenge. Our goal is not just to provide the most powerful and helpful AI tools, but to ensure that our clients can trust the insights these tools generate.

For further insights into tackling these challenges, explore our blog posts on data readiness for AI and overcoming roadblocks in industrial AI.

Remember, in the world of AI-assistance, your results are only as good as your data. At Fero Labs, we're here to help you make the most of both.