Where Your AI Dollars Really Belong: A Conversation with Frost & Sullivan

AI budgets are tricky. Spending in the wrong place can result in flashy tools that never deliver. During one of our latest Unify events, I teamed up with Karyn Price of Frost & Sullivan to unpack how to avoid those pitfalls and build an AI approach that actually works.

Now that the live session is wrapped, I’m excited to share the biggest takeaways — from hidden budget traps to the must-have data foundation — that can help any team turn AI plans into real business impact.

Big Picture: Data First, Tools Second

One of the most jaw-dropping stats Karyn shared was that 87% of AI projects never make it into production. Too many teams grab the newest model or platform without first making sure the data is ready.

I like to compare it to building a house: no one starts with the furniture and hopes the foundation appears later. The same goes for AI. Unless your data is unified, clean, and governed, the fanciest algorithms won’t deliver reliable insights.

That was the drumbeat throughout our conversation: data strategy before AI strategy. Plan how data will flow, where it will live, and how it will stay accurate and secure. Only then will cutting-edge tools earn their keep.

Breaking Down Data Silos = Breaking Through

Here’s another eye-opener: 43% of enterprises are still struggling to create a single, trusted data foundation, even though unstructured files make up about 80 % of a company’s information.

At Nasuni, this is where we’ve learned the game is often won or lost. Siloed data isn’t just inefficient; it causes model inaccuracies and can even lead to those infamous “AI hallucinations.” The antidote is a global file system, where every department can access the same high-quality source of truth.

We talked about how this isn’t a rip-and-replace overnight move. Most companies take it step by step, moving their most valuable data first and expanding steadily. But the long-term payoff (speed, trust, and actionable insights) makes it worth every effort.

Budget Blind Spots to Avoid

AI budgets can disappear fast if you don’t watch for hidden traps. During the session, we explored several that come up again and again:

• Tool-first spending. Many companies sink 60% of their first-year budget into platforms before their data is ready, which almost guarantees poor ROI.
• Big-bang rollouts. While skipping pilot projects may feel like fast progress, it often leads to costly rework and frustrated teams.
• “Set it and forget it.” AI needs ongoing attention, so plan on 40–60% of your initial investment every year to keep models current and operations smooth.
• Talent gaps. The market for AI skills is tight. We encouraged leaders to grow expertise internally and build a learning culture that keeps pace with change.

Each pitfall is avoidable if you start with a realistic roadmap and pace your investments for steady, measurable wins.

Security Isn’t Optional

One moment that really resonated with me was the following: 91% of organizations think they can prevent data breaches, yet over 30% still get hit. Add AI to the mix, and the risk compounds.

Karen and I dug into how built-in cyber resilience, like Nasuni’s immutable snapshots and near-instant recovery, can turn a potential days-long outage into a quick bounce-back measured in minutes. Beyond cost savings, that’s protection for your brand and your customers’ trust.

Your Next Move

Before I go, I want to thank Karyn Price of Frost & Sullivan for joining me in this conversation and sharing her deep expertise. Her real-world perspective and industry data brought tremendous value to the discussion, and I’m grateful for the opportunity to collaborate and learn together.If there’s one idea I hope everyone takes away from our conversation, it’s this: AI’s potential is only as strong as the data foundation beneath it.

Before the next project kicks off, ask yourself: Is our data unified and AI-ready? Do we have the governance and security to match? Are we budgeting for the long haul, not just year one?

Watch the on-demand replay for a deeper dive, including our full checklist for planning, governance, and scaling. Whether you’re just starting to experiment or already piloting enterprise-wide initiatives, these insights can help you invest wisely and stay ahead.