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Rearchitecting Enterprise IT for AI Readiness

Key Points

  • AI’s current breakthrough stems from large language models that ingest and process the vast public internet, effectively “swallowing” it to gain broad text and image understanding.
  • Within an organization, the relevant data and applications differ dramatically from the internet, making the straight‑forward “AI‑swallow‑the‑enterprise” approach a poor fit.
  • Most enterprise AI projects that try to bolt AI onto existing IT stacks (data, SaaS, custom apps, networking) fail—over 90% according to the speaker—because the underlying architecture isn’t designed for AI integration.
  • To succeed, companies must re‑architect their IT infrastructure with AI as a foundational layer, mirroring how the human brain’s structure informs intelligent function, rather than treating AI as an afterthought.

Full Transcript

# Rearchitecting Enterprise IT for AI Readiness **Source:** [https://www.youtube.com/watch?v=yKPAwTF1SGY](https://www.youtube.com/watch?v=yKPAwTF1SGY) **Duration:** 00:20:38 ## Summary - AI’s current breakthrough stems from large language models that ingest and process the vast public internet, effectively “swallowing” it to gain broad text and image understanding. - Within an organization, the relevant data and applications differ dramatically from the internet, making the straight‑forward “AI‑swallow‑the‑enterprise” approach a poor fit. - Most enterprise AI projects that try to bolt AI onto existing IT stacks (data, SaaS, custom apps, networking) fail—over 90% according to the speaker—because the underlying architecture isn’t designed for AI integration. - To succeed, companies must re‑architect their IT infrastructure with AI as a foundational layer, mirroring how the human brain’s structure informs intelligent function, rather than treating AI as an afterthought. ## Sections - [00:00:00](https://www.youtube.com/watch?v=yKPAwTF1SGY&t=0s) **AI Swallows the Internet Paradigm** - The speaker highlights that today’s AI, exemplified by GPT‑driven large language models that ingest massive internet data like a brain, demands that IT professionals rethink and redesign their architectures to become AI‑ready, particularly for internal organizational applications. - [00:04:30](https://www.youtube.com/watch?v=yKPAwTF1SGY&t=270s) **Brain Structure and Sensory Processing** - The speaker outlines vertebrate anatomy—including the cerebellum, spinal cord, and three brain regions—and explains how these structures organize and process sensory data from sight, sound, smell, taste, and touch. - [00:07:46](https://www.youtube.com/watch?v=yKPAwTF1SGY&t=466s) **Frontal Cortex Integrates Experience** - The speaker explains how the brain’s frontal region coordinates sensory input and long‑term strategic thinking to decide actions, illustrating its remarkable ability to fuse memories of sights, sounds, smells, and emotions. - [00:10:57](https://www.youtube.com/watch?v=yKPAwTF1SGY&t=657s) **Enterprise Applications Feeding a Data Lake** - The speaker outlines how various business systems (CRM, HR, finance, legal) connect via a network to a central data layer, discussing the differing qualities and purposes of data lakes. - [00:15:02](https://www.youtube.com/watch?v=yKPAwTF1SGY&t=902s) **Turning Apps into MCP Services** - The speaker explains how converting existing applications into Model Context Protocol (MCP) services creates tool and data‑source interfaces that agents can orchestrate across a partitioned data lake, likening each application to a brain organ. ## Full Transcript
0:00Today, artificial intelligence is everywhere. And if you're working in IT or you're a developer, uh 0:07you've probably either already come into contact with AI, or you may very soon find yourself to be 0:12involved in some projects uh, with AI. And I, I think it's very important that we take a minute and 0:19understand that AI is, is a launching off uh, of the human brain. And so, if we take a moment to 0:26think about where we've come from with AI uh, and look at the architecture and the plan and the 0:30plan of the human brain,uh, it's going to give us some hints about how we need to evolve our IT 0:35architecture to be more AI-ready uh, across our technology. And so,uh, you know, here's a really little 0:41cartoon summary. Um, so when we think about AI today, we have the 0:48internet, and the internet's got tons and tons of data. And, and so really where, you know, 0:55where the current uh, GPT-driven large language models and the sort of new paradigm of, of AI that 1:02we're in today has, has real heavy overlap with the internet. Because basically, 1:09you know, the, the GPT models kind of swallow the internet and process it and then create these, 1:15these large models uh, that have a really uh, good understanding of text and images and these, and 1:21these new applications, okay? So, this first paradigm is sort of AI swallows the internet, right? 1:27Um, and so, when we think about this, this, uh, this framing, this is not really useful 1:34for us inside an organization. Um, when we're inside an organization,um, we care a lot 1:40about specific things that are applicable to our organization. So, you know, the data that we 1:47care about inside uh, an organization is very different than all the data that's on, that's in 1:53the internet. Um, and when we think about our, our organization, you know, we have um, important, you know, 1:59applications and, and maybe some of that is, is SaaS and maybe some of that are things that we've 2:04developed internally. But we've got kind of this, this executive functioning layer of our 2:09applications. And then of course, uh, we have networking uh, that kind of connects everything 2:15together. Um, but the, the challenge that we have with this sort of existing IT infrastructure in AI 2:22is that, you know, now we're, we're in a paradigm today where we're in this kind of like plus AI 2:29paradigm. So, it's kinda like, this is what we've got. You know, we've got data and apps and SaaS and 2:33networking, and we're in this sort of like now we're trying to have sort of AI swallow the 2:38enterprise, right? So, AI swallowed the internet, and now we're trying to kind of jam AI into the, into 2:44the existing, um, enterprise. And the, and the problem, the problem with this, okay, the problem that 2:51with this is that we're seeing 90% plus failure of AI initiatives that 2:58are happening in this style. Okay? And so, what we, what we really probably need to get 3:05to is uh, a world where, we need to get 3:12to a world where our AI, okay, is a plus, but we need to get to a world where, where 3:18we've got a little bit more organization and separation of kind of what our, what our data, 3:25what our data sources are and what our tools and executive capabilities are, and then how that's 3:31going to interact uh, with AI. And of course, the goal here is to kind of reverse uh, what's happening 3:38down here, you know, and let's try to get to um, 80% plus success rates in our AI 3:45initiatives. So we've talked a little bit about where we came from and kind of where we're at. And 3:51let's take a step back now and let's talk about, you know, what are we trying to mimic. You 3:58know, when we're, when we're talking about artificial intelligence, you know, what we're 4:02really trying to do is we're trying to mimic human intelligence. And so, all animals, okay, all 4:07biological animals have a body plan. And a body plan is kind of a biologist's way of saying an 4:12architecture, right? An IT person would say an architecture, biologist says body plan. So here we 4:18have a, a brain and we have, you know, this main region in the top where most of the action is, 4:24right, um, uh, which is the cerebrum. And then we've got this, this sort of midbrain area. 4:31And we've got a, a little thing back here called the cerebellum, which is, which is Latin for uh, small 4:37brain. Um, and then you've got this nerve cord, right? So, this is your nerve cord and it runs 4:44down your backbrone, backbone, right? So, so, so vertebrates have their nerve cord running down a 4:49backbone and invertebrates have their nerve cord not running down a backbone. But what we're, what we're 4:54basically, this body plan is basically designed to sort of process data, right? 5:01So we're processing data from the environment and we're sort of, um, 5:07generating responses,okay? So we're getting data here, you know, 5:14from all of our, when our body touches things and feels things, um, you know, we're getting data 5:20coming in here through our ear. Uh, we're getting data uh, coming in here through our, um, olfactory area 5:27with the nose and the mouth. And the reality is that your eye is a little bit down from here, but 5:31basically, you're getting in data here from smelling and tasting. You're getting data from 5:35hearing, which is auditory. You've got a big uh, you've got a big you know, data center coming in from, from optical 5:42data when you're looking at things. And so, you've got all this data coming in and, 5:48and the brain is basically organized into, into three parts, sort of three regions. 5:55Um, you've got the, you've got the uh, the lower brain, you've got the 6:02midbrain, and then you've got this upper, upper brain area, right? And so, in the, in the lower 6:08brain,uh, what you're doing is you're processing really primitive data and really primitive 6:14responses, right? So in the lower and a little bit into this midbrain area, we're monitoring the 6:19temperature, we know if we're hot and cold, we know if we're, you know, we know if we're, if we're being uh, eh, 6:25if, if something is hitting us or punching us or biting us. As we move up into the, into the 6:30midbrain, so the lower brain is like is like really, um, 6:37primitive. Uh, the midbrain starts to be about connectivity. 6:44So the midbrain is handling a lot of data exchange; what gets ignored, what gets stored in 6:50memory, what gets moved around um, to different parts of the brain. And if you look at this picture from 6:56the top, most people know that there's a left and a right hemisphere to the brain. So we're like 7:00bi, bilaterally symmetrical. You've got this left and right brain, and right here in the midbrain as 7:05well, you've got this very important structure that connects and allows for communication across 7:10those two hemispheres. So really midbrain is, is about connectivity, lower brain is kind of primitive 7:16functioning. And then if you look at this, you know look, at look at all of this real estate that we 7:21have. We've got a huge amount of real estate left over up here. Um, and if you go and, and look at the 7:27literature,this, this really big region up here in the upper brain is oftentimes described as being 7:33in like four parts, you know, so there's kind of like four parts of this thing. And this frontal 7:39part, the frontal area is where we're really getting our executive functioning, okay? 7:46So, this, this is really the pilot. So, when you're, when you get up and, 7:53and whatever you're deciding to do next right now—if you decide to pause this video—it's this 7:58frontal brain area that's integrating all, everything that you're experiencing and kind of deciding 8:04what to do next. Right? We've got these, we've got these sensorial areas,okay, that deal with uh, 8:11processing auditory uh, data that's coming in through our ears. We've got a big optical area towards the 8:17back of the, of the upper part of the brain. And we've got this, and we've got these upper regions uh, 8:23that allow us to, to, to, to integrate and do really long-term strategic thinking. So one of the great 8:29things a brain does is, is really, you know,the, themillion, the million-dollar, uh, you know, thing that 8:36the brain does that we can't,uh, that we, that we have a hard time figuring out how to 8:42replicate is the brain is like really amazing at integration, right. 8:49So it's really good at integrating. So, when you're asked about a memory of like, hey, you were at the 8:54beach last summer. Um, when you, when you think about that moment, you may be remembering salt 8:59smells, you may be remembering the sound of the waves, you might remember the taste of some really 9:04great uh, crab cakes that you had while you were there. Um, and you may even remember stepping on a 9:09sharp shell, you know, and cutting your foot and experiencing pain and having to go get stitches. But, 9:13but the thing that's amazing about the brain, right, is this ability to, to integrate and kind of 9:18know when to take,uh, when to take bits of all these different senses and, and all of this different data. 9:25Now,the, the last thing I'll say about the brain that I think is, is, is, is foretelling about when we 9:31think about artificial intelligence and the enterprise is the brain ignores almost everything 9:38that it experiences. So, what's amazing is that we, we completely ignore about 9:4499.8% of all the data that we, that we come into contact with. And so, if you think about your drive 9:49to work this morning, okay, you're, you're not you know, that there were other cars on the road, but 9:54your brain knows to ignore the, the sequence of colors of different cars, or the make and models of 9:59different cars. Now, if you, if a Ferrari went zooming past you, you might remember that cuz 10:04it's really, it's kinda really out of the ordinary. Um, but, but the brain is incredibly good at 10:09ignoring, um, like almost everything that you're coming into contact with. And it's very good at 10:15storing things that really stand out, that are, that are likely to be important in the future. 10:20Okay. So now let's, let's talk a minute about where we're at with, uh, with, with our enterprise sort of 10:27IT architecture. We're going to keep this super simple. Um, so we're going to keep this in three 10:31categories, okay. We're going to talk about applications, okay? So, akli, applications 10:37you know, are you know,are, are things that do things, right? So it's kind of like 10:43executive functioning applications.Two, um, is data. So, all different types 10:50of data that we're storing. And three will be network, okay? 10:57So network, network again is kind of how we connect things, it's our communication plan. Okay. 11:02So, when we, when we sort of start looking at our applications, let's put just a couple of these 11:09over here, um, you know, maybe we have like a, a CRM type of a system. Uh, maybe we have a 11:16human, a human resources information system. Maybe we have a sort of financial, 11:23you know, financial accounting type of system here. And, you know, maybe we've got, uh, you know, maybe 11:29we've got something that holds. that's sort of a legal system that holds contracts or other kinds 11:34of documents that might be of a legal nature. So here, here are applications. Um, and then typically, 11:41you know, we're going to have uh, some, some type of data layer, okay? And so I'm going to write the 11:48word uh, data lake right here. And, you know, don't be offended by data lakes, 11:55you know.Um, I know that uh, some data lakes are constructed uh, to where we feel like everything is 12:00just kind of dumping into them,um, and other data lakes have, have been uh, carefully constructed so 12:06that you've got some really nice logical layers, and they're really useful, right? But whether, whether 12:10your data lake is a, is a swamp or whether it's really useful, the idea is that we've got 12:15these applications, the applications themselves have, have data and have users and have executive 12:22functioning,uh, and we typically connect them uh, and sorta dump data into, into something that might 12:28look like a data lake.Now, in the past, when we're trying to uh, when we're trying to 12:35do things across these applications, we end up in, in sort of a bad, what I would call a kind of a 12:41star structure, right? So I've got my, you know, my CRM, my HR, my financial, 12:48you know, my CLM. And, you know, this may have been, you know, this is something else. Um, but what we, what we 12:55typically do is we use an API type of paradigm. So we use kind of an API 13:02paradigm here. And we say, well, you know,the, the HR system, you know, needs to go grab some information 13:08from that system, and the CLM system uh, needs to push something to the, to the financial system. And the s, 13:14the financial system also needs to talk to this other system over here. And so we kind of end up 13:19in this, we kind of end up in this, in this connected world where we're relying heavily on 13:24APIs and we're relying really heavily on very structured, um, types of integrations that do very, very 13:31specific things. So, when we're building this type of architecture, you know, we really can't 13:37leave much to chance. If we leave much to chance over here, things start to break. Okay? 13:44So, the, the, the big question is how do we move uh, from this paradigm where we've got 13:51kind of uh, AI kind of being jammed into the picture,uh, into a paradigm where this type of 13:58picture becomes more AI-ready. Okay? And, and so let's take a shot at that. The first thing that 14:05we're going to need to do is we're going to need to, we're going to need to scotch uh, this API 14:12as the, as the dominant interface, because we're going to need to introduce a new character into 14:17our story. Uh, we're going to need two new characters. We're going to need a new 14:24orchestration layer, and the orchestration layer is going to 14:30spawn armies of AI agents. So, we're going 14:37to have lots of, lots of different AI agents that are going to be able to be spawned out of 14:44this orchestration layer. Now, what good is the orchestration layer right now if it's not 14:50interconnected to uh, the rest of this world? And you know, what good is it if we're kind of up in this 14:57type of a world where everything is kind of already connected in very specific ways? 15:02Well, without, without interrupting how we're operating today, we can start to do some new things, 15:09which is to make sure that each of these applications 15:15gets an MCP 15:22service. So, MCP service stands for Model Context Protocol. And if we, I'll just put an M 15:28here. So for each of these applications that we're using and for the different 15:35areas in our data lake, maybe we partition our data lake a little bit and um,and, 15:41and chop it up and organize it so that these things can start to become MCP. Um, we can have 15:48MCP hosts that are providing MPC service to our agents. Okay? 15:55And so, when we, when we, when we add orchestration and when we transform our 16:01applications into now being able to be MCP services,um, what the, what 16:08that's doing is it's exposing these applications um, as basically sets of, of tools. 16:15Tools is like, what can I do? And data sources, which is like what do I know? So, 16:21tools are what can I do, data sources is what do I know about. Okay? And when we start to look at 16:28having MCP services kind of distributed here and, and where we can communicate and, and 16:34ask and go, go, go ask agents to go do specific actions across this 16:41infrastructure, we're kinda eking in the direction of looking more like this picture, okay? 16:47Because the, the ability to orchestrate, you can almost look at, you know, these different applications 16:52kind of as different organs in the brain. So maybe the CRM is kind of like my ears and my auditory 16:57center. My HRIS system might be kind of like my olfactory, you know, nose and mouth. 17:04My financial and accounting system, you know, might start to look more like my upper kind of 17:08strategic part of my brain. My CLM system, you know, might be, might be back here in the rear as part 17:14of motor coordination or something. But, but ultimately, we start to have sort of organs who, who 17:20are, which remain specialized. But by putting in the MCP and expressing themselves as tools and 17:27data, and by breaking into this data lake and creating you know what we call an AI-ready 17:33data layer, okay? 17:41When we get to an AI-ready data layer instead of a data lake, and when we. and when we and we get 17:46these executive functioning uh, applications able to interact with MCP, then we can send lots of 17:53agents out, and these agents almost start to be like synapses. Um, synapses are the, are the, 18:00are the structure that connect neurons in the brain. And so, what the, what the brain is 18:06able to do is when you want to do something super complicated,your, your forebrain, this executive uh, 18:12functioning frontal area in here—I'm going to try to use a different color—so when you're, when you 18:18go to do something complicated, you're activating this integration in this, in this executive 18:23functioning here in this forebrain. Well, what, what's going to happen is that's going to be, that's 18:27going to be this orchestration layer over here. So when we want to do something complicated, we're 18:31going to want to activate this orchestration. And then what we're going to do is we're going to 18:36know, are we calling on hearing or are we calling on our olfactory senses. Are we 18:43calling on, you know, some really higher-level strategic functioning? Is, is the, is the task needing 18:48to call on, you know, motor coordination? And we can start to develop a very, a very strategic approach 18:55to doing very complicated things. Now over here, that's what this architecture starts to look like 19:00cuz you've got sort of your orchestration is kind of your frontal lobe. It can, it can, you know, 19:05it can basically look at, in the agent framework, it can basically say, look, let, let's talk about goals 19:11we're trying to achieve and then outcomes that are going to be acceptable. Okay? And 19:18so, goals and outcomes start to kind of be more the way we work in the, in the human brain. We can 19:23use the orchestration layer and we can light up, you know, we can light up all these agents, kind of 19:28like synapses, to go out across all these different, um, functional executive functioning 19:34parts of the, of the application layer. And that they can also, the agents can also—let's go back 19:40to our agent color. The agents can also come down and jump into areas of 19:47the data layer as well. And so, the, the goal of this, the goal of this conversation,uh, 19:54you know, was to kinda use a little bit of a cartoon and have some fun.Um, but it is to remind 19:59everybody that artificial intelligence is literally trying to replicate the kind of, the 20:05kind of uh, incredibly integrated functioning that we have uh, in the human brain with biologic 20:11intelligence. And so, if we take a look at the human brain and we look at how integrated it is, 20:16we look at how compartmentalized it is,um, we look at,uh, you know, how organized it is, we look at th, its 20:23compact nature, we look at the fact that it runs uh, on very low power, um, and, and 20:29then we can start to see sort of where we, where we maybe want to go with the enterprise IT um, so 20:36that we can be more AI-ready across the enterprise.