Unlocking the power of data: Alation CEO on AI's next big leap

In a recent interview with CEO.com, Satyen Sangani, CEO and co-founder of Alation, shared insights into the company’s mission to simplify data comprehension and the evolving role of artificial intelligence (AI) in business operations.

Sangani recounted the founding of Alation 12 years ago alongside three co-founders, each bringing a unique perspective to data understanding. He detailed his background as an analyst with academic training in economics, experience as a financial analyst on Wall Street, and tenure at Oracle developing business software for banks and financial institutions. His co-founders include an expert in human-computer interaction from Stanford, an AI specialist with a PhD in fuzzy learning, and a database expert, both of whom had experience at Google. This diverse expertise converged with the shared goal that “data just needs to be easier to comprehend and understand,” leading to the creation of Alation.

Discussing the rapid advancements in AI, Sangani noted that while AI has existed in various forms for decades, recent developments have significantly impacted businesses. He emphasized that AI’s effectiveness depends on the data quality it processes. He highlighted that many critical business systems—such as those managing general ledgers and customer data—store essential strategic information. However, he pointed out that “these new large language models are primarily trained on text and unstructured files,” which can lead to challenges when precise, definitive answers are required in business contexts.

Sangani elaborated on Alation’s role in bridging the gap between unstructured AI models and structured business information systems. He explained that Alation enables companies to integrate generative models with their critical systems to produce understandable and reliable outputs. This integration ensures that AI applications provide precise information, aligning with business needs for accuracy and consistency.

Addressing the pace of AI innovation, Sangani acknowledged the swift developments in the field but emphasized the importance of focusing on customer-centric solutions. He stated that while leveraging leading tools from industry giants like OpenAI and Google is crucial, the primary focus should be understanding and solving customer problems. This approach involves identifying how AI models can assist in addressing specific use cases, ensuring that technological advancements translate into practical benefits for clients.

Sangani also touched on the critical issue of AI governance, noting that many enterprises lack awareness of where and how AI is utilized. He stressed the necessity for companies to identify the existence and application of AI models, understand the data feeding these models, and monitor their usage to mitigate risks. This awareness is essential for maintaining control over AI-driven processes and ensuring they align with the company’s strategic objectives and regulatory requirements.