What Generative AI for Business Needs from Data Infrastructure

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18/08/2025

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What Generative AI for Business Needs from Data Infrastructure

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Introduction

Generative AI (GenAI) has rapidly transitioned from a futuristic concept to a transformative business imperative, promising unprecedented capabilities in content creation, automation and personalized experiences. Yet, beneath the dazzling outputs of Large Language Models (LLMs) and other GenAI applications lies a foundational truth: their efficacy is directly proportional to the quality and accessibility of the data they consume. The journey from "hype" to tangible "results" in GenAI is not merely about selecting the right models; it fundamentally hinges on a robust, scalable and meticulously managed data infrastructure for AI models.

This article will dissect the critical requirements that Generative AI for business needs from your data infrastructure to move beyond experimental phases and deliver real-world business value, transforming ambitious visions into measurable business outcomes. Gartner predicts that by the end of 2025, at least 30% of GenAI projects will be abandoned after proof of concept due to poor data quality, inadequate risk controls, escalating costs, or unclear business value (8). This stark forecast underscores the urgency of building a solid data foundation.

The Data Imperative: Fueling Generative AI's Potential

Generative AI models, including LLMs, are insatiably data-hungry. Their ability to learn intricate patterns, generate coherent text, create realistic images, or synthesize novel information relies on being trained on massive volumes of diverse and high-quality data (1). Without a meticulously prepared data pipeline for AI/ML, even the most advanced algorithms will fall short, leading to outputs that are irrelevant, biased, or simply "hallucinations." The quality of training data directly affects the performance of GenAI models, as emphasized by Actian Corporation (9).

Key data requirements for successful GenAI implementation include:

Volume and Diversity: GenAI models require enormous datasets - often spanning terabytes to petabytes - to capture the nuances and complexities of human knowledge and creativity. These datasets must be sufficiently large to represent common patterns and variability for accurate predictions, encompassing structured data (like customer records), semi-structured data (like JSON logs) and vast amounts of unstructured data (text, images, audio, video). Diversity in data sources helps prevent model bias and ensures broader applicability. The sheer scale demanded for initial training, retraining and inferencing necessitates significant investments in specialized infrastructure (10).

Accuracy and Completeness: The principle of "garbage in, garbage out" is acutely relevant for GenAI. Flawed, incomplete, or inconsistent data leads directly to biased, inaccurate, or irrelevant outputs, often termed "hallucinations." Datagaps emphasizes that data quality is non-negotiable for GenAI, as poor-quality data can lead to skewed insights or harmful content (3). Missing values, data duplication and irregularities can severely compromise model performance and trustworthiness (6). Gartner defines data quality based on dimensions like accuracy, completeness, consistency, timeliness, uniqueness and validity, all of which are crucial for AI readiness (11).

Contextual Relevance: For GenAI to deliver actionable results, the data must be highly aligned with the specific task and domain. Integrating proprietary enterprise data with foundational models is crucial to yield relevant, business-specific insights rather than generic responses (1). Retrieval-Augmented Generation (RAG) frameworks are emerging as a powerful technique to ground LLMs with reliable internal data, significantly reducing hallucinations and improving contextual accuracy. Microsoft Azure's AI Foundry, for example, emphasizes the importance of context data to refine GenAI model responses (12).

Compliance and Security: Training GenAI models on sensitive or proprietary data without stringent controls poses significant legal, ethical and reputational risks. Data must adhere strictly to privacy laws (such as GDPR, CCPA) and industry-specific regulations. Protecting data against unauthorized access, breaches and misuse is paramount throughout its lifecycle (2). Atlan highlights that data governance for AI ensures responsible, secure and compliant data management from training to deployment (4). This proactive approach is vital to avoid fines and maintain customer trust.

These foundational data needs unequivocally demonstrate that the true power of GenAI is unlocked not by the models alone, but by the strength, intelligence and resilience of the underlying data infrastructure for AI models.

-> To understand how to build a comprehensive data foundation that supports all modern data initiatives, explore DataNovar's guide: The C-Level Playbook to Building a Future-Ready Data Infrastructure.

Building a Robust Data Infrastructure for Generative AI for Business

Transforming raw, disparate data into a reliable, high-octane fuel source for GenAI requires a strategic and multi-faceted approach to your data infrastructure for AI models. This involves optimizing every layer, from storage to governance, to ensure scalability and optimal data system performance.

1. Scalable Data Storage for Large Language Models

Large Language Models (LLMs) and other GenAI models demand storage solutions capable of handling unprecedented scales of data, often ranging from terabytes to petabytes. This encompasses raw datasets for training, preprocessed and cleaned data, intermediate training data and numerous model checkpoints. Gartner notes that the enormous demand for custom infrastructure to train GenAI models has created a huge mismatch between supply and demand, particularly for GPUs, but even with GPUs, robust data infrastructure is needed to feed them fast enough (10).

Tiered Storage Strategies: A single storage solution is rarely sufficient. Implementing tiered storage is essential:

High-Speed Storage: For active training data and frequently accessed model checkpoints, high-performance storage solutions like NVMe SSDs or specialized distributed file systems (e.g., Lustre, Ceph) are critical to prevent I/O bottlenecks and maximize GPU utilization during training (7).

Scalable Cloud Object Storage: For vast, less frequently accessed raw datasets and cost-effective archiving, scalable cloud object storage (like AWS S3, Google Cloud Storage, Azure Blob Storage) provides immense capacity and durability.

Hybrid Approaches: Combining on-premise high-performance storage with cloud archiving can offer a balance of speed and cost-effectiveness, addressing the high costs associated with cloud-only GenAI workloads for sustained operations (13).

Data Lake and Lakehouse Architectures: While traditional data warehouses excel at structured data, GenAI's reliance on diverse data types makes data lakes and lakehouses more suitable. A data lakehouse architecture is often recommended as it effectively combines the flexibility and vast storage capacity of a data lake (for raw, unstructured data) with the data management, governance and ACID properties typically found in a data warehouse (2). This hybrid approach offers unparalleled scalability for diverse GenAI workloads, supporting both batch and real-time processing of structured and unstructured data.

Vector Databases: For efficient similarity search and Retrieval-Augmented Generation (RAG) applications, specialized vector databases or vector search capabilities within existing databases (like pgvector for PostgreSQL) are becoming crucial. These databases are optimized for storing and querying high-dimensional vector embeddings, enabling fast retrieval of contextually relevant information for LLMs. Microsoft Azure, for instance, supports connecting to Elasticsearch as a vector database for use with Azure OpenAI, highlighting the importance of efficient vector search (14).

-> For insights into addressing scalability challenges in data infrastructure, particularly for traditional data warehouses, consider reading Why Your Data Warehouse Fails at Scale – And How to Fix It.

2. High-Performance Data Pipelines for AI/ML

Efficient data pipeline for AI/ML are the conduits that prepare, transform and deliver data to GenAI models, ensuring a continuous flow of high-quality information.

Automated Data Ingestion: The first step is to seamlessly ingest data from a multitude of diverse sources. This includes:

SaaS Applications: Data from CRMs, marketing platforms, ERPs.

Internal Databases: Operational databases like MySQL and PostgreSQL.

Unstructured Sources: Text documents, images, audio, video files.

Streaming Data: Real-time data feeds from IoT devices, clickstreams, financial transactions. Automated ingestion tools and connectors (e.g., Fivetran, Airbyte, Kafka Connect) are critical to handle this complexity and ensure data freshness.

Data Processing and Transformation (ETL/ELT): This is arguably the most critical and time-consuming stage. It involves:

Data Cleaning: Identifying and rectifying errors, removing duplicates, handling missing values and standardizing formats. Studies suggest data scientists spend a significant portion of their time (up to 60% according to Forbes) on data cleaning and organization (1). Multimodal emphasizes that failing to clean data correctly will result in the model's performance suffering (6). Microsoft Azure's AI strategy emphasizes data preparation, validation and iterative data design for AI workloads, including preprocessing, selecting embeddings and chunking for RAG solutions (12).

Feature Engineering: Transforming raw data into features that are more meaningful and predictive for the AI model.

Labeling and Annotation: For supervised learning tasks, accurate labeling of data is essential, often requiring human-in-the-loop processes.

ETL/ELT Paradigms: Both ETL (Extract, Transform, Load) and ELT (Extract, Load, Transform) are vital. ELT, often favored in cloud environments, allows raw data to be loaded first into a data lake/warehouse, with transformations happening later, offering greater flexibility.

Real-Time Capabilities for GenAI: For interactive GenAI applications like chatbots, personalized recommendations, or real-time fraud detection, real-time synchronization and streaming capabilities within the data pipeline are vital. Platforms like Apache Kafka and Flink enable low-latency data ingestion and processing, ensuring models receive the most up-to-date information (5). Research indicates that streaming data pipelines improve model accuracy by reducing data staleness, which is indispensable for enterprise AI systems (15).

MLOps Integration: Data pipelines are the backbone of MLOps (Machine Learning Operations). They must be integrated into the broader MLOps lifecycle to enable continuous training, validation, deployment and monitoring of GenAI models. This ensures that models are always updated with fresh data and remain relevant. Microsoft Azure Machine Learning emphasizes MLOps to streamline the development and deployment of machine learning models (16).

-> Our article Startup-Proof Data Integration: What Works Beyond APIs delves deeper into robust data integration patterns that are essential for building such resilient data pipelines, including ETL and Change Data Capture (CDC).

3. Robust Data Quality and Governance Frameworks

The integrity, trustworthiness and ethical use of GenAI outputs are directly tied to data quality and effective data governance for AI. Without these, GenAI can lead to significant risks, including legal penalties and reputational damage. Gartner predicts that 30% of GenAI projects will fail partly due to poor data quality and inadequate risk controls (8).

Data Quality Dimensions: Beyond basic accuracy, data quality for GenAI encompasses multiple dimensions as defined by Gartner:

Completeness: No missing values.

Consistency: Data is uniform across all sources and over time.

Timeliness: Data is up-to-date and available when needed.

Validity: Data conforms to defined rules and formats.

Uniqueness: No duplicate records. K2view emphasizes that organizations must prioritize data quality by establishing KPIs directly linked to GenAI success to minimize AI hallucinations and generate more accurate results (3). Qlik, recognized as a Leader in Gartner's Magic Quadrant for Augmented Data Quality Solutions, highlights the importance of a unified approach to data quality, embedding it throughout the data platform to ensure trustworthy data for AI (17).

Automated Data Quality Tools: Modern solutions leverage AI itself to enhance data quality. Generative AI can assist in data augmentation, synthesis of synthetic data (especially for imbalanced datasets), automated context-aware data cleansing and anomaly detection, significantly reducing manual effort (1).

Comprehensive Data Governance for AI: This involves establishing clear policies, procedures and controls for the entire data lifecycle, specifically tailored for AI data. Key principles, as outlined by Atlan and Digital Guardian, include (4, 18):

Data Security: Protecting sensitive information in training datasets through encryption, strict access controls and vulnerability detection. This is paramount for any data infrastructure. Microsoft emphasizes preventing unauthorized access and sensitive data exposure for AI initiatives like Microsoft 365 Copilot (19).

Privacy and Consent: Adhering to strict privacy laws (e.g., GDPR, CCPA) and ensuring transparent data usage with informed consent. Data minimization (collecting only necessary data) is a key best practice (7).

Bias Detection and Fairness: Proactively identifying and mitigating biases present in training data to prevent unfair or discriminatory outcomes from AI models. This requires continuous monitoring and specialized toolkits. Microsoft Azure's Responsible AI framework focuses on developing, using and governing AI solutions responsibly (16).

Transparency and Explainability: Understanding the origin of data, how it's transformed and how AI models make decisions. Data lineage tracking and clear documentation are crucial for auditability and trust (4).

Accountability: Organizations must take ownership of the actions and outcomes of their AI systems.

Ethical AI Considerations: Beyond compliance, organizations must embed ethical considerations into their data architecture and processes. This includes ensuring human safety, promoting fairness and maintaining human oversight over AI decisions (7). PMI's ethical considerations for AI projects emphasize fairness, transparency, privacy and human safety (20).

-> Addressing data security proactively is paramount for any data-driven business, a theme central to Secure Data Infrastructure: What Actually Protects Your Business.

4. Continuous Monitoring and Optimization

The dynamic nature of GenAI models, evolving data sources and changing business requirements necessitate ongoing vigilance and a proactive approach to data system performance.

Comprehensive Performance Monitoring: Beyond traditional infrastructure monitoring, it's crucial to continuously monitor the performance of your entire data infrastructure for AI models. This includes tracking:

Data ingestion rates and latency.

Data processing times and resource utilization.

Model training times and inference latency.

Data quality metrics and anomalies. Motadata highlights that continuous monitoring provides real-time awareness and offers immediate visibility into ongoing activities, acting as a proactive shield against potential threats and identifying operational inefficiencies (5).

Data Drift and Model Drift Detection: Implement mechanisms to detect data drift (changes in data patterns over time) and model drift (degradation in model performance over time). These can severely impact GenAI output quality and necessitate retraining.

Observability for the AI Data Stack: Establish end-to-end observability across your data pipeline for AI/ML, allowing teams to quickly identify the root cause of issues, whether it's a data quality problem, a pipeline bottleneck, or a model performance degradation.

Automated Remediation and Feedback Loops: The future of AI data infrastructure points towards self-healing pipelines, where GenAI models can even assist in generating validation scripts, optimizing SQL code and suggesting fixes based on past errors (4). Establishing robust feedback loops from GenAI application outputs back to the data preparation and training stages enables continuous improvement and adaptation. Microsoft Azure's AI strategy emphasizes the importance of monitoring model safety and quality evaluation metrics for generative AI apps in production (16).

-> For insights into the importance of continuous monitoring for overall data system performance, refer to Improve Data System Performance Without Rebuilding Everything.

DataNovar's Expertise: Bridging the Gap Between Hype and Results for Generative AI

At DataNovar, we understand that unlocking the true potential of Generative AI for business requires more than just innovative models; it demands a sophisticated and reliable data infrastructure for AI models. We specialize in architecting and implementing the robust data ecosystems that Generative AI needs from your data infrastructure to thrive, transforming ambitious visions into tangible, measurable business results. Our comprehensive services encompass:

Scalable Data Architecture for AI: We design and build scalable data architecture for AI that can handle the immense data volumes and intensive processing demands of Large Language Models and other GenAI applications. This includes implementing modern data lakehouse architectures and optimizing data storage for Large Language Models using tiered strategies and specialized solutions like vector databases. We help organizations overcome the mismatch between data supply and demand for AI workloads, ensuring GPUs are fed efficiently.

High-Performance Data Pipelines for AI/ML: We develop efficient data pipeline for AI/ML that ensure high data quality, data consistency and real-time synchronization for both training and inference. Our expertise covers the full spectrum of data preparation for Generative AI, from automated ingestion of diverse data sources (including MySQL and PostgreSQL) to advanced ETL processes, Change Data Capture (CDC) and Reverse ETL for operationalizing insights. We ensure your data is always AI-ready, clean and contextually relevant.

Robust Data Governance and Security for AI: We implement comprehensive data governance for AI frameworks and robust data security measures to ensure compliance with regulations, mitigate risks like bias and data breaches and build unwavering trust in your AI outputs. Our solutions align with best practices for responsible AI, ensuring ethical data use.

Continuous Optimization and Database Expertise: We provide continuous monitoring and performance tuning services for your AI data infrastructure, ensuring optimal data system performance. Our database development services include optimizing underlying databases like MySQL and PostgreSQL for AI workloads and providing tailored solutions for complex data needs. We also assist with data migration to ensure seamless transitions to new, scalable environments, including cloud data integration solutions.

Cloud Data Integration Expertise: We leverage our deep knowledge in cloud data integration to build cost-effective and highly scalable data solutions for GenAI on leading cloud platforms, balancing the benefits of cloud flexibility with cost optimization for sustained AI operations.

By partnering with DataNovar, you can transform the hype around Generative AI into tangible results, ensuring your data infrastructure is not just supporting, but actively driving your AI ambitions, leading to improved operational efficiency and competitive advantage.

-> Contact us today for a complimentary consultation on how we can help you build the data foundation your Generative AI initiatives deserve.

Conclusion

The promise of Generative AI for business is immense, but its realization is inextricably linked to the strength and sophistication of your underlying data infrastructure for AI models. Moving from "hype" to measurable "results" requires a deliberate and strategic investment in data quality, comprehensive data governance for AI, a resilient and scalable data architecture for AI and high-performance data pipeline for AI/ML. Organizations that prioritize these foundational elements will be best positioned to harness the full transformative power of GenAI, turning complex data into a continuous stream of innovation, actionable insights and sustainable competitive advantage. The future of AI is not just about smarter algorithms; it's about the intelligent, well-managed data infrastructure that empowers them.

References:

Informatica. "IT Leaders' Checklist: Data Requirements for Predictive AI and GenAI." Link

IBM. "How to build a data strategy to support your generative AI applications." Link

Datagaps. "Why Data Quality is Non-Negotiable in Fueling the GenAI Boom." Link

Atlan. "Data Governance for AI: Challenges & Best Practices (2025)." Link

Rivery. "AI Data Pipeline: Benefits, Features & Use Cases." Link

Multimodal. "How to Prepare Data for AI: A Complete, Step-by-Step Guide." Link

Massed Compute. "What are the storage requirements for training a large language model?" Link

Gartner (via Datagaps). "At least 30% of generative AI (GenAI) projects will be abandoned after proof of concept by the end of 2025, due to poor data quality, inadequate risk controls, escalating costs, or unclear business value." (Quote from Datagaps article referencing Gartner) Link

Actian Corporation. "Data Preparation Guide: 6 Steps to Deliver High Quality GenAI Models." Link

DDN (referencing Gartner). "Beyond the Hype: What Gartner® GenAI Report Reveals About Building AI-Ready Infrastructure." Link

Gartner. "Data Quality: Best Practices for Accurate Insights." Link

Microsoft Learn. "Grounding Data Design for AI Workloads on Azure." Link

Lenovo Press. "On-Premise vs Cloud: Generative AI Total Cost of Ownership." Link

Microsoft Learn. "Using your data with Azure OpenAI in Azure AI Foundry Models." Link

ResearchGate. "Review of Data Pipelines and Streaming for Generative AI Integration: Challenges, Solutions and Future Directions." Link

Microsoft Azure. "Generative AI in Azure Machine Learning." Link

Qlik (referencing Gartner). "2025 Gartner® Magic Quadrant™ for Augmented Data Quality Solutions." Link

Digital Guardian. "AI Data Governance: Challenges and Best Practices for Businesses." Link

Securiti.ai. "4 Data Governance Best Practices for Microsoft 365 Copilot." Link

PMI Blog. "Top 10 Ethical Considerations for AI Projects." Link

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