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Today's guest is Prukalpa Sankar, Co-Founder & CEO at Atlan. Atlan is a metadata platform delivering data and AI governance. Combining enterprise data with AI infrastructure with business context and ...
Prukalpa Sankar, CEO of Atlan, explains why 75-95% of enterprise AI pilots fail in production and how building a dynamic context layer—not just semantic layers—is the key to operationalizing AI. The conversation reveals that enterprises must shift from traditional governance models to business-first operating models where technical and business teams co-engineer context continuously. Leading companies like Workday, Mastercard, and General Motors are achieving 5-10x accuracy improvements by embedding context engineering directly into AI use case development rather than treating it as an afterthought.
Sankar identifies three critical context gaps preventing AI from reaching production: inability to find data (discovery), lack of business meaning (LLMs don't understand enterprise-specific definitions like 'TAM'), and governance challenges (controlling what data AI agents can access). She explains how $250B spent on data/analytics had 75% failure rates, and AI is worse at 95% failure because the context problem has intensified.
Sankar differentiates context layers from traditional semantic layers and knowledge graphs. Using a real customer example, she demonstrates how an AI data analyst failed because it couldn't interpret 'top 10 customers'—sales teams meant by revenue, success teams meant by NPS ratings. Context layers must be dynamic, continuously updated through feedback loops rather than built as static three-year governance programs.
Unlike traditional IT projects that only need business sponsorship, AI requires active business involvement as 'context engineers.' Sankar explains this fundamental shift in operating models and roles, emphasizing that domain expertise resides with business teams, making their participation essential for AI success. This represents an existential opportunity for technical leaders to expand their influence.
Sankar frames AI adoption as existential, noting that average S&P 500 company tenure dropped from 75 years (25 years ago) to 15 years today, and may drop to 3 years in the AI era. She positions this as a super-cycle opportunity where leaders will either become transformation heroes or lose their jobs within 3-4 years.
Sankar shares concrete results from enterprises building context layers. Workday improved AI accuracy by 5x by moving from 'perfectly governed BI data' to context-driven approaches, onboarded 6,000 employees, and achieved over 1 million platform views. Mastercard's CDO built an agentic governance framework with over one-third of products now AI-first.
Sankar introduces 'context readiness' as the prerequisite for AI readiness, sharing a blueprint operating model. The approach: start with business use cases driving measurable ROI, build reusable context foundations around them, and involve business as context engineers throughout. This avoids the failed approach of building complex graphs before production.
Sankar details the technical implementation framework: create evaluation benchmarks from existing BI queries and Slack questions, bootstrap with verified SQL queries, implement human-in-the-loop verification, and maintain always-on enrichment. Customers achieve 10x accuracy improvements within one month using this approach.
How an Open Context Layers Help Enterprises Build, Govern, & Scale Agentic AI - with Prukalpa Sankar of Atlan
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