The Implementation Gap in Enterprise AI
Key Takeaways
AI Ambitions Depend on Data Readiness
Many organizations are investing in AI, but fragmented, unstructured and poorly governed data environments continue to slow adoption and limit results.
Specialist Providers are Critical to AI Success
Platforms such as Snowflake and Databricks provide the infrastructure needed for data readiness, migration and deployment.
There is Growing Opportunity for Data Services Firms
Demand is shifting toward providers that combine technical expertise, business context and implementation experience to deliver value.
63%
of organizations do not have, or are unsure whether they have, the right data management practices in place for AI implementation.1
60%
of AI projects unsupported by AI-ready data are expected to be abandoned through 2026.1
Enterprises are increasing their investments in artificial intelligence, but many continue to face challenges deploying AI applications at scale.
Modern Enterprise Data Environment
Legacy Systems
Cloud Apps
Unstructured Data
Siloed Data
A common constraint is the condition of the underlying data environment. Data may be fragmented across legacy systems and cloud applications, inconsistently governed or difficult to access. Much of it is also held in unstructured formats that require additional organization and transformation before it can support AI applications. Legacy systems create further complexity. They often contain embedded business rules that influence how information is calculated, classified and used. These rules must be understood and translated during a migration to preserve data quality, regulatory compliance and operational continuity.
Key Challenges for Enterprises to Overcome
Fragmented Data
Security/Governance
Business Context
Data Quality
Addressing these challenges requires both modern technology platforms and significant advisory, engineering and implementation expertise. Platforms such as Snowflake and Databricks provide the infrastructure needed to bring together structured and unstructured information, apply consistent governance, support large-scale data engineering and develop AI workloads within a common environment.
Their capabilities are becoming increasingly important as enterprises seek to build reliable, secure and scalable AI solutions. However, implementing these platforms and adapting them to an organization’s existing systems, data and business processes to enable AI use cases can be complex. Specialist providers therefore play a critical role in assessing data readiness, designing the architecture, managing migrations and translating platform capabilities into practical applications.
Through our investment in JMAN, we have seen firsthand the important role specialist providers play in helping organizations turn data into commercially relevant insights and applications. JMAN combines a consulting-led approach with deep data science and engineering capabilities, pairing technical expertise with a strong commercial understanding of its clients’ businesses. Its growth has reinforced our conviction in the value of this services layer.
Consulting-Led Approach
Data Engineering Capability
Business Value
AI is also changing how this work is delivered. Repetitive and lower-complexity engineering tasks are likely to become more automated, while architecture, industry knowledge, business context and customer-specific implementation become more important. Providers that combine experienced technical teams with proprietary tools and reusable intellectual property, should be well placed to benefit from this shift. We believe the strongest providers will extend their service offerings beyond initial implementation into higher-value AI applications, platform optimization and ongoing managed services, all of which will create deeper customer relationships.
At Baird Capital, we are actively seeking to partner with founder-led data services and AI enablement businesses that help customers modernize their data environments and deploy AI more effectively. With more than 35 years of experience investing in technology services and software, teams in the US and UK, and a track record of supporting international growth, we believe we are well positioned to support management teams as they broaden their capabilities, deepen customer relationships and scale globally.
