From Raw Data to Real Value: What Changed in Enterprise AI, and What Didn’t
A few years ago I wrote that the hardest part of machine learning wasn’t the algorithm. It was the long, messy journey from raw data to a model that actually runs in production and earns its keep.
Since then, generative AI has gone from research curiosity to a standing item on every board agenda. AI agents now write code, triage service tickets, and reconcile invoices. Budgets have followed.
And yet enterprise results have barely moved. In McKinsey’s 2026 State of AI survey, only 37% of respondents said AI had contributed anything to their organization’s EBIT, essentially flat from the year before, even though 80% said AI had made them personally more productive.
That gap between individual productivity and enterprise value is where I’ve spent much of my career as a technology executive. When I reread my original piece, I was struck by how much of it still holds. The tools changed. The hard problems didn’t. Here is how I’d update it for leaders setting AI and technology strategy in 2026.
Start with the business outcome, not the model
I argued then that the purpose of an AI system should be as specific as possible. I’d go further now: if you can’t name the P&L line, the customer metric, or the risk exposure an AI initiative is supposed to move, it isn’t ready to be funded.
Generative AI made this harder, not easier. When a technology can do almost anything, teams are tempted to point it at everything. The result is a portfolio of pilots that each demo well and collectively return very little.
The organizations getting real value treat AI as business transformation with a technology component, not the other way around.
[Add 2–3 sentences from your own experience: a use case you stopped or reshaped because the business case didn’t hold, what you funded instead, and the result.]
Data is still the product
Every enterprise I know produces data faster than it can use it. Long-established institutions like banks have it hardest: decades of history spread across mainframes, warehouses, SaaS platforms, and spreadsheets someone in finance still maintains by hand. Most of it is siloed, poorly documented, and never put to work.
Five years ago the challenge was finding the right features for a model. Today the same challenge shows up as finding trustworthy context for a large language model or an AI agent. The vocabulary moved from feature stores to vector databases, retrieval, and semantic layers. The discipline underneath did not. You still need data that is well defined, governed, owned by someone, and fit for the specific use case.
Gartner has predicted that through 2026, organizations will abandon 60% of AI projects that aren’t supported by AI-ready data. In my experience, that isn’t pessimism. It’s why I push leaders to treat data as a product, with accountable owners, quality standards, and lineage, and to fund data engineering, data modernization, and data governance as core infrastructure rather than as a tax on individual AI projects.
[Optional: one sentence on a data platform or governance program you led and a measurable outcome, such as cost reduction, faster time to insight, or audit results.]
The pilot-to-production gap is an operating model problem
In 2022 the conversation was about how few machine learning models ever reached production. The numbers have changed; the pattern hasn’t. Most organizations are now stuck somewhere between a successful proof of concept and value at scale.
What separates the few that break through is rarely the model. McKinsey’s latest research found that nearly three-quarters of its AI high performers had fundamentally redesigned workflows around AI, compared with about a quarter of everyone else. Bolting a copilot onto a broken process just gives you a faster broken process.
Scaling AI takes what scaling any enterprise capability takes: a modern cloud and data platform, an enterprise architecture that doesn’t require a custom integration for every use case, MLOps and LLMOps practices so teams aren’t reinventing deployment each time, clear product ownership, and change management that takes the frontline seriously.
It also takes financial discipline. AI operating costs, including inference, are now material enough that roughly one in five organizations in McKinsey’s survey said cost was limiting their AI use. FinOps belongs in the AI conversation from day one, not after the first surprising invoice.
Models drift. So do agents.
I once used the pandemic to show how quickly a model can break. Banks had years of reliable behavioral data. Then branches closed, spending patterns flipped, and credit and fraud models built for the old world started making confident, wrong predictions.
That lesson matters more now. Traditional models drift when the data changes. Generative AI systems can also drift when a vendor updates a foundation model, when a prompt is edited, or when an agent meets a situation nobody tested. “Deploy and move on” was never a strategy. With AI that can take action on its own, it’s a risk exposure.
Continuous evaluation, monitoring, and observability aren’t engineering niceties. They are how an executive team knows whether an AI system is still doing what it was approved to do.
Trust is an architecture decision
I wrote previously that transparency in AI has two meanings. The first is making AI understandable enough that business leaders will act on it. People who have run a business for decades rely on judgment, and if a model contradicts that judgment without explanation, they won’t use it, however accurate it is. The second is transparency as protection: knowing what data a model relies on so you can prevent harm.
My original example still applies. A lender shouldn’t use race to decide credit approvals, and that’s the easy part. The harder part is catching proxies, such as ZIP code or purchasing patterns, that can reintroduce the same bias through the back door. That is why traceability, the ability to see exactly where a feature or a piece of context came from, is a governance requirement rather than a nice-to-have.
I’ll also repeat a view that is still unpopular in some rooms: a model that not everyone can explain is not automatically a harmful one. The answer isn’t to ban complex models. It’s to govern them in proportion to the risk they carry. That, in practice, is what responsible AI means.
That governance now carries regulatory weight. Under the EU AI Act, as amended this summer, obligations for stand-alone high-risk systems apply from December 2027. That sounds like a long runway until you consider how long it takes most enterprises simply to inventory every AI system they run.
Cybersecurity belongs in the same conversation. An agent that can read your data and act in your systems is effectively a new class of identity. It needs least-privilege access, audit trails, and a named human who owns the override. In McKinsey’s 2026 research on AI trust, nearly two-thirds of respondents cited security and risk as the top barrier to scaling agentic AI. Strong security and AI governance don’t slow AI down. They are what allow it to scale.
Automation changed the economics of the work
I was excited about automated feature discovery because it turned weeks of manual trial and error into hours. That trend has gone further than I expected. AI now helps write data pipelines, generate tests, document legacy code, and profile data sets. Work that once required a specialized team can be started by a motivated analyst.
The “citizen data scientist” I described has become something broader: nearly every employee now has access to capable AI tools. That is a real opportunity for productivity and innovation, and a real governance challenge. The job of technology leadership is to make the safe path the easy path, with approved platforms, guardrails built into the tools, and serious investment in AI literacy and upskilling so people know what good looks like.
It also changes how we build engineering organizations. As AI absorbs more routine work, the premium shifts to people who can frame problems, design systems, judge quality, and connect technology decisions to business outcomes.
What I’d tell a board today
If I had five minutes with a board on AI, I’d keep it simple. Fund outcomes, not experiments, and stop pilots that can’t name their business metric. Treat data, platforms, and governance as the investment that makes every future AI use case cheaper and safer. Redesign the workflow before you automate it. Put an accountable owner on every AI system that can make or take a decision. And measure AI the way you’d measure any other capital allocation.
None of this is as exciting as the latest model release. It is what will separate the companies reporting real returns from AI from the ones still presenting pilots.
I’m as optimistic as I was five years ago. AI is helping researchers pursue treatments for diseases that had none and helping companies absorb supply chain shocks that would have crippled them a decade ago. That value is real. But it always starts in the same unglamorous place: raw data, a clear purpose, and leaders willing to do the hard work in between.
Where are you seeing the biggest gap right now: data readiness, operating model, governance, or cost? I’d like to hear what’s working in your organization.