Build vs. buy for AI: Choosing the right data foundation
Blog post from Fivetran
A new MIT Technology Review Insights report reveals that 64% of C-suite executives prioritize data readiness for AI success, but face challenges in building the necessary data foundation. The biggest pitfalls include data integration and pipelines, with 45% of respondents citing data integration as their top challenge. Legacy DIY methods are often used for enterprise data pipelines, leading to average losses of $406 million per year. Automated, reliable, and secure data integration is crucial for trustworthy AI, but many organizations struggle with this. The report highlights the importance of a strong data foundation for GenAI, as well as the need for a data quality mitigation strategy like retrieval-augmented generation (RAG) to incorporate proprietary business data. DIY data pipelines do not scale and can become costly liabilities over time. Modern, automated solutions like Fivetran offer built-in schema change support and automatic propagation of data source changes, reducing the operational burden and improving AI performance.
| Trend | Post Mentions | Total Month Mentions | Posts | Companies | MoM |
|---|---|---|---|---|---|
| Data Pipeline | 7 | 1,400 | 332 | 68 | +111% |
| RAG | 3 | 1,936 | 254 | 78 | -19% |
| Real-time | 2 | 3,932 | 887 | 192 | +47% |
| LLM | 1 | 3,889 | 441 | 129 | +7% |
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