As AI continues to rise in importance across all industries, the cost of implementation, readily available access to cloud computing, and practical business use cases make AI-powered offerings a competitive advantage for product managers, engineering, and data leaders. However, AI isn’t without its fair share of risks and challenges. “Garbage in, garbage out” is a popular saying when it comes to AI for a reason, and enterprises especially find it challenging to implement AI because of the sheer scale of data they manage.
What is the future of enterprise AI, and how can you get over AI hurdles to deliver value?
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Download NowAI Challenges
You’ve likely run into one of AI’s biggest challenges: AI agents don’t deliver value without clean, governed, and context-rich enterprise data. And implementing AI isn’t cut and dry. According to MIT research, only 5% of enterprises have integrated AI tools into their workflows at scale.
Other core challenges include:
Unreliable Outputs and Black Box Risk: AI models often hallucinate, producing answers that change from run to run with no way to verify or audit. Leaders cannot defend decisions they cannot trust.
Complex and Brittle Data Connections: LLMs struggle to query proprietary databases accurately, requiring constant schema fixes and fragile pipelines that break at scale.
High-Stakes Security Risks: Direct access to production systems creates vulnerabilities that risk breaches, downtime, or compliance violations
Excessive Manual Effort: Data teams spend more time cleaning, transforming, and managing permissions than delivering AI applications, slowing time to value.
Governance Overhead: Sensitive data requires strict controls, but scaling governance across every user and system is difficult, expensive, and often incomplete.
Lack of Contextualization: In analytics, experts know the data and meaning behind it. AI doesn’t have that luxury, you must supply context, or outputs are shallow and generic.
Auditability and Verification: AI can hallucinate. Without evidence and traceability, you can’t trust it, and users can’t defend analysis based on unverifiable outputs.
Why Enterprise Data Silos Cause AI Hallucinations
AI is designed to deliver clear, confident answers. But what happens when they’re wrong? This is an AI hallucination. AI hallucinations erode trust between users, their stakeholders, and the organization who provided the AI solution to them. Hallucinations are a substantial problem. According to a study by OpenAI, its own o3 and o4-mini models gave false answers 30%-50% of the time.
The root problem revolves around context. Publicly trained LLMs enter enterprise systems without understanding the proprietary knowledge that makes business decisions meaningful. When AI systems access enterprise data, they often work with incomplete, disconnected, ungoverned information and produce results accordingly.
Data and analytics work is always contextual. It requires understanding how information relates across systems and how the business interprets that information. Dropping AI into this environment without governance and semantics almost guarantees failure.
How Can Embedded Analytics and BI Help?
Embedded analytics and BI software are tried-and-true ways of delivering data to your customers in a way that’s easy to read and present. Even with AI proliferating businesses and the culture at large, embedded analytics and BI are still excellent ways to add value.
By building the foundation now with this readily available, accessible, and affordable software, businesses can prepare themselves for the future while also reaping the benefits today. Even with rapid technological advancements from AI, BI still provides trusted data for end users. Offering embedded analytics and BI puts you at a competitive advantage by offering your users access to valuable organizational data. When you implement AI, enhance your investment with BI and embedded analytics.
Make the Most of Your AI Investment
Despite AI pitfalls, the answer isn’t to abandon AI, It’s to change the substrate the model works with. To truly benefit from artificial intelligence, set the stage with effective reporting and analytics.
AI systems become reliable when they access governed, contextual data with business semantics applied at query time. This is the structural change that removes the conditions under which hallucinations occur.
Simba Intelligence gives technical teams a governed platform that transforms enterprise data into an AI-ready semantic layer they can trust in production. It integrates directly into workflows so product owners and data leaders can deliver hallucination-resistant insights, and it gives data teams secure, in-place access across sources without brittle pipelines. Multimodal interfaces are enabled through Model Context Protocol (MCP) integrations including text, image, and document-based interactions. Simba Intelligence can launch agents that scan your data, identify relationships, and automate much of data preparation with human-in-the-loop oversight.
Acting as a central hub for governed data access, it unifies how enterprise systems, AI agents, and applications connect to live data. Simba Intelligence delivers reliable answers that lead to trusted decisions, intelligent products, and outcomes leaders can stand behind. With Simba Intelligence, you and your users are poised to become the smartest person in the room, helping you overcome hurdles while delivering AI-powered value to your customers.
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By: insightsoftware
Title: The Future of AI in the Enterprise
Sourced From: insightsoftware.com/blog/the-future-of-ai-in-the-enterprise/
Published Date: Fri, 06 Feb 2026 14:00:00 +0000