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The 2026 Test Data Management Report for AI-Ready Enterprises
- Letter from the Authors
- Ranking Test Data Priorities: Why Data Quality Claims the #1 Spot
- The Data Control Paradox: Top Priorities vs. Biggest Barriers
- The Problem with Process: Test Data Bottlenecks Are Stalling Workflows
- Solving for Modern Test Data Management Challenges
- Key Takeaways: How You Can Make the Next Step Toward AI-Ready Test Data Management
- Respondents Snapshot: Segments, Industries, & Job Titles
- Key Terms to Know
Report > The 2026 Test Data Management Report for AI-Ready Enterprises
Solving for Modern Test Data Management Challenges
Quality, flexibility, scalability, and speed are all among top challenges and barriers to test data automation. We asked enterprises what they are using to protect their test data, and we found most are taking a portfolio approach, leveraging multiple solutions at once. They are using static data masking (86%) and dynamic data masking (60%), synthetic data (51%), tokenization (33%), and data subsetting (29%) — picking the ones they need and having them work together for a well-rounded strategy.
Finding the Right Approach for Your Use Cases
Enterprises have preferences for data protection approaches based on use cases. For example, many use static data masking (45%) for software development and testing. Not every approach will fit the needs of the use case, meaning organizations should be critical of where they implement each.
For professionals considering these approaches, the key is choosing the right approach to data to answer the right question. Let's compare some of the methods at an individual level:
- Static masked data is excellent for data fidelity, where the data is reasonably like production. Static masking can also reach scale with much less compute when properly combined with things like data virtualization. Since it can preserve the patterns of production data (including its outliers and anomalies), it can be much more attractive at scale.
- Synthetic data is much better suited for new applications/features, edge cases, negative testing. It can be very compute intensive, and no matter how good an analyst you are, there are data patterns (especially outliers and anomalies) that synthetic will always miss.
- Dynamic masking has a place in the lineup as well. It’s often the preferred choice when you need real-time access, but it has definite drawbacks. It can be expensive to maintain its security configuration, and the security configuration can differ among vendors resulting in either many configurations or having to federate data to protect it which affects response time.
- Subsetting is often the choice for organizations that need to save storage — the vast majority cite this reason — or to save compute. It often shows up in analytics when there are just immense amounts of data to test against. However, building or configuring a set of rules to subset properly is often as expensive — and sometimes more expensive — than managing your data structure in the first place. When you attempt to scale it up, the subset rules start to become more complex as a whole than any of the individual pieces, and it also becomes subject to a large cost of change.
Webinar
How to Choose the Best Data Protection Approach for You
From data masking and synthetic data to tokenization and redaction, enterprises are given a plethora of data protection approaches to choose from. So how do you cut through the noise? Delphix experts Ilker Taskaya and Hims Pawar break down your options for a future-forward data compliance strategy.
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Simplify Compliance with One Single Platform
Ensuring compliance while also accelerating development speeds can be difficult. By unifying data delivery, masking, and governance in your portfolio approach, you can ensure complete control over your operations. Delphix offers one single platform for it all: data delivery, masking, synthetic generation, and governance. With a one-stop shop built for enterprise scale and complexity, teams can access trusted data on demand across hybrid and multicloud environments.
Gartner Peer Insights™ Customers' Choice for the 2025 Voice of the Customer for Test Data Management
Perforce Delphix was recently cited as a Gartner Peer Insights™ Customers' Choice in the 2025 Voice of the Customer for Test Data Management*.
AI Workflows Need a Combination Approach
AI-assisted and agentic development can generate code, tests, and prototypes faster than traditional test data processes can support. The result is a new bottleneck: Teams can move quickly in code, but they cannot validate quickly enough because realistic, compliant, synchronized, and scenario-specific data is not available on demand.
Striking the right balance between data solutions like synthetic and automated masking can help you address multiple needs at once. Take software development for example — masked production data is good for testing product behavior at scale while synthetic data works for testing new apps/features and edge cases. By taking a portfolio approach, you can see what solution fits your specific use cases best and streamlines your AI workflows.
Data Masking in Action
See how Delphix data masking works to protect sensitive data in your non-production environments.
Featured Testimonials
Hear customer testimonies about how Delphix has helped them achieve new test data management efficiencies and benefits.
- UniSuper saw a 70% improvement in its development team efficiency with Delphix data delivery and self-service capabilities.
- Ontario Teachers’ Pension Plan realized new storage cost savings by virtualizing production databases.
- ADP reduced its data delivery times from days down to as little as 30 minutes, using the Delphix platform.