10. Data Lifecycle Management

Classifying, managing, and controlling data throughout its lifecycle for AI systems.

Data Lifecycle Management addresses how data is handled from creation through to deletion, specifically in the context of AI systems. This encompasses data classification (identifying sensitive, personal, or confidential data), retention schedules (how long data is kept), access controls (who can use data for AI training or inference), data lineage (tracking where data came from and how it’s transformed), quality assurance processes, and compliant disposal. For AI, this also includes managing training datasets, test datasets, and the data generated by AI systems themselves.

AI systems are data-intensive and can amplify the consequences of poor data management—using outdated data degrades performance, including personal data without proper controls breaches privacy laws, and lacking lineage makes it impossible to trace problems to their source. This dimension assesses how your organisation classifies, manages, and controls data throughout its lifecycle.

Why It Matters

Poor data management leads to compliance breaches, biased models, and operational inefficiencies.

The Challenge of Data Silos

One of the most common barriers to AI readiness is data isolated in silos—where data is fragmented across different systems, departments, or legacy databases. Data silos create several problems for AI:

  • Inaccessibility — AI systems cannot access the data they need for training or inference
  • Inconsistency — The same data may be stored differently in multiple places, causing quality issues
  • Security gaps — Duplicated data creates multiple attack surfaces and compliance challenges
  • Inefficiency — Teams cannot share insights or reuse data assets across the organisation

Breaking down data silos requires both technical solutions (unified data platforms, data lakes, integration tools) and governance frameworks (data classification, access controls, ownership policies). This dimension assesses whether your organisation has implemented both aspects.

Further Reading: Breaking Down Data Silos

Microsoft’s white paper “Colocation: Build a Scalable Cloud Foundation for AI” discusses strategies for eliminating data silos through cloud migration:

  • Moving databases to cloud platforms with better integration capabilities (page 6)
  • Implementing data lineage tracking and quality assurance (page 6)
  • Reducing latency and improving performance for AI workloads (page 6)
  • Multi-layered security and compliance for cloud-based data (page 11)

While cloud infrastructure can help address technical aspects of data silos, organisations must still establish data governance policies, classification schemes, retention schedules, and lifecycle management processes—the capabilities assessed in this dimension.

Maturity Levels

BasicStandardAdvancedLeading
Unmanaged data; no classification or retention policies applied to AI data.Data classification and retention schedules in place.Controlled data pipelines with lineage tracking and access controls.Fully automated data lifecycle management, with continuous compliance and quality assurance.

See This in Practice

📥 Related Resources & Templates

Downloadable templates, examples, and frameworks to help you implement this dimension.

Data Classification Policy for AI

Data classification policy extended to cover generative AI and LLM use cases, including handling guidelines and visual aids.

📝 DOCX 📝 DOCX 📚 PPTX

Data Retention Schedule

Template for defining data retention policies for AI training data, model inputs/outputs, and related artifacts.

📝 DOCX

Data Lineage Diagram

Visual template for documenting data lineage in AI systems, tracking data flow from source to model to output.

📚 PNG