As enterprises rush to build AI agents that can reason over business data and take action, Databricks argues that the long-standing practice of separating operational and analytical data systems is turning into a liability.

That separation, the cloud-based data warehouse provider says, is becoming increasingly strained as AI agents require simultaneous access to live operational data and historical context to make decisions and take actions in real time, unlike humans, who traditionally can work with data that is minutes or hours old.

At its annual Data + AI Summit, the data warehouse provider introduced Lake Transactional and Analytical Processing (LTAP), a new architecture designed to unify transactional and analytical data on a single storage layer.

The new approach, according to Databricks, differs from traditional online transaction processing (OLTP) and online analytical processing (OLAP) architectures, which typically store operational and analytical data in separate systems.

Traditionally, OLTP databases are optimized for running day-to-day business operations such as order processing, payments, and inventory updates, while OLAP systems are designed for large-scale analytical queries and reporting.

As a result, enterprises often need to rely on ETL pipelines, data replication, and separate infrastructure to move information between the two environments.

LTAP, Databricks said, seeks to eliminate the reliance on ETL pipelines, replicated databases or separate data copies by storing data once in a shared lakehouse layer while allowing dedicated compute engines to handle transactional and analytical workloads independently.

This approach, the company argued, provides AI-driven agents and applications access to both live operational data and historical analytical context without requiring data movement or duplicate copies.

Developer simplicity in the agentic era

Analysts, too, agree with Databricks’ contention that AI agents place new demands on enterprise data architectures.

“Agents don’t behave like people, or even like the apps we built for people. They read for context, loop, try things, then write something back, thousands of times over in ways you can’t fully predict. At that volume, the constant bouncing between production and analytics systems starts becoming the bottleneck. The pressure to collapse that gap is real, and LTAP is one way to approach it,” said Michael Leone, principal analyst at Moor Insights and Strategy.

Bhupendra Chopra, cofounder and CRO at IT consulting firm Kanerika, pointed out that an autonomous agent’s data access pattern makes the traditional architectures brittle: “We’re seeing this directly with clients deploying multi-agent systems, the pipeline layer becomes the ceiling almost immediately as an agent runs hundreds of times per task.”

The analysts also pointed out that the ability to collapse the gap between OLAP and OLTP is likely to help developers design more robust AI agents or applications that enterprises are currently targeting to deploy.

“The most interesting workflow or application patterns are real-time, context-aware applications that combine transactions, analytics, and AI in one flow,” said Stephanie Walter, practice leader of AI stack at HyperFRAME Research.

“Examples include AI agents that update customer workflows while seeing historical account context and fraud systems that act on live transactions and long-term behavioral patterns,” Walter added.

Designing such applications today, however, according to Leone, would require developers to pull together data from transactional systems, data warehouses, vector databases, and other sources through custom integrations, creating significant engineering complexity and maintenance overhead.

Operational simplicity and governance gains for CIOs

For CIOs,  LTAP’s ability to reduce that engineering complexity, according to Ashish Chaturvedi, leader of executive research at HFS Research, will result in operational simplicity as well as cost savings.

“Most prominent advantage would be fewer data pipelines and everything that cascades from eliminating them. Most enterprises don’t realize how much of their data engineering budget is pure plumbing maintenance,” Chaturvedi said.

Kanerika’s Chopra pointed out that a substantial portion of data engineering capacity in mid-to-large enterprises today is consumed by maintaining synchronization between transactional and analytical systems.

The implications, however, Chaturvedi noted, are not limited to developer productivity, architectural simplicity, or cost savings: “The strategic prize is simplified governance. When you have one copy of data under one governance model instead of the same data scattered across operational stores, replicas, warehouses, and vector databases, you’ve solved the governance fragmentation problem.”

That simplification, according to Chopra, will matter operationally for enterprises deploying multiple AI agents, as these workflows can amplify governance gaps at a speed and scale that no human workflow ever did.

LTAP versus HTAP

Despite all its benefits, though, LTAP isn’t the first effort to unify operational and analytical workloads under a single architecture and for years.

The industry has pursued a similar goal through Hybrid Transactional and Analytical Processing (HTAP) architecture, which sought to combine operational and analytical workloads on tightly coupled infrastructure to serve both workload types from the same system.

LTAP, in contrast, separates storage from compute, allowing different engines to access a common data layer while remaining independently scalable, Databricks said.

That separation of compute engines is why analysts think that LTAP might be a better bet than HTAP.

“HTAP never took off because asking one tightly bound system to be great at transactions and great at analytics usually left it mediocre at both, so customers ended up paying a premium for that compromise,” Leone said.

“I think separating storage from compute is the right instinct, and it’s the same move that made the modern cloud data world work in the first place. It matters because the thing that sank HTAP was one workload starving the other, and giving each side its own dedicated engine is exactly how you keep that from happening,” Leone added.

Another reason for HTAP’s failure, according to David Menninger, executive director of software research at ISG, was its requirement for enterprises to replace existing data platforms with a new architecture.

LTAP, by contrast, builds on the now-common practice of separating compute and storage, making the addition of an operational layer less of an architectural transformation and potentially lowering the barrier to adoption, Menninger added.

Not yet the default architecture for AI agents

However, despite the enthusiasm around LTAP, analysts warned CIOs against viewing this as the inevitable successor to existing data architectures.

“CIOs will still need to choose their data architecture based on latency, reliability, ecosystem fit, cost, compliance, and developer experience,” Walter said.

Echoing Walter, Chaturvedi pointed out that for LTAP to become the de facto standard for the industry, Databricks will need more than architectural elegance: “The architecture looks sound on paper. The proof will be in the commit-to-query latency numbers under real load.”

LTAP, Databricks said, is expected to be released soon as part of Lakebase, without providing any specific timelines.

Every organization has data scattered across data warehouses, data lakes, SaaS platforms, cloud drives, and data centers. Data fabrics enable organizations to centralize and control data access, making it easier for users, such as data scientists and citizen data analysts, to find and use trusted and governed data sources. 

Data fabrics, data meshes, and distributed data clouds are all platforms to help IT and data teams put some order to the chaos around the myriad of data sources they support. Large companies need data fabrics due to the volume and variety of their data sources.

“A data fabric can be thought of as the connective tissue that ensures consistent accessibility, availability, and understanding of data across an organization,” says Dominic Wellington, data and AI expert at SnapLogic. “Individual siloed platforms may have their own internal data transfer systems, and particular teams or departments may adopt interchanges that work for that domain, but a data fabric operates at a higher level, ensuring that unified data policies are applied end-to-end across the entire enterprise.”

Types of data fabrics

When reviewing data fabrics, it’s important to consider their primary use cases, supported data types, data processing capabilities, data management structures, and governance functions. Below are some considerations when reviewing data fabrics as features, platforms, and stand-alone products.

• Some data fabrics are optimized for analytics and machine learning use cases and may have limited support for unstructured data.
• Other data fabrics extend the functionality of data governance platforms beyond data cataloging and metadata management and now include persistent data management, data quality, and dataops capabilities.
• Many data integration and API connectivity platforms go beyond proxying, pipelining, and transforming data to include search, governance, and other capabilities from data centralization.
• Some SaaS platforms are extending their connectivity and data integration capabilities, enabling multicloud portability and persistent data.
• The more advanced data fabrics support features needed for AI agents and AI model training. These platforms create a semantic context layer for structured and unstructured data sources, support Model Context Protocol (MCP) integrations, have real-time query capabilities, centralize policy-driven governance, and track data lineage.    

Why data fabrics are needed for AI

Data fabrics are not just for enterprises, and today, even smaller companies need them as part of their AI democratization programs. Here are a few reasons why:

• AI agents in enterprise SaaS solutions need access to broader data sets than those core to their workflows. Platforms such as Adobe, Appian, Oracle, Salesforce, ServiceNow, SAP, and Workday offer data fabric capabilities to bring data outside of the business processes they manage into scope for their AI agents.
• Unstructured data is important for setting the context for AI agents, and data fabrics are now used to provide access to documents, emails, transcripts, and other media formats.
• Data fabrics provide data access standards for the devops teams experimenting with AI code generators, vibe coding tools, and spec-driven development approaches to develop applications and AI agents. 
• As companies use MCP servers to connect AI agents, data fabrics provide a standardized way for the agents to access governed, trusted data sources.

“As AI agents move from generating insights to taking action, the data fabric becomes foundational in the agentic era,” says Irfan Kahn, president and chief product officer of SAP Data & Analytics. “Most enterprises operate across scattered data sources and diverse data landscapes, and what’s needed is shared business context, governed access, and clear accountability for how data is used in decision-making. Without that context, agents can’t fully understand or coordinate across the enterprise to deliver meaningful value.”

Sanjay Koppikar, chief product officer and cofounder of EvoluteIQ, adds, “Multi-agent architectures become untrustworthy when a unifying data fabric architecture is missing, since agents will often work against each other in the service of their own objectives.”

Delivering context to AI agents

AI agents need a combination of real-time data, user information, problem details, and historical context to guide their decision-making. Vishal Sood, president of research and development at Typeface, says, “MCP and data fabrics give agents access, but the harder problem is contextualizing data across multiple sources and ensuring the underlying content, media, and unstructured data are trustworthy.”

Data fabrics are the foundational elements for providing current information and long-term memory to AI agents. They simplify the many-to-many problem of connecting multiple AI models, AI agents, and MCP server integrations to multiple structured and unstructured data sources.

“The data fabric does a beautiful job of encompassing three concepts needed to create applications and processes: the data catalog, the data model, and data access,” says Sanat Joshi, executive vice president of product and innovations at Appian. “But now add business rules, process models, APIs, security groups, the organizational model, and their interrelationships into one unified view of the enterprise, and that becomes your context layer.” 

Integrations with data fabrics

Devops teams just getting started on an AI agent proof of concept may want to connect directly to the optimal data sources and APIs. Michel Tricot, CEO and cofounder at Airbyte, says connecting agents to live APIs is a great start, but it creates two big problems: APIs only return data that an agent already knows to ask for, and every query is an expensive API call chain that, with overhead, can overwhelm infrastructure in production volumes.

Tricot says the data fabric for AI use cases must be dynamic, leveraging discovery of available information from replicated data, fetching live contextual information, and writing the data back to business applications to update records.

Moving data in and out of the data fabric requires an integration strategy. Zero-ETL (extract, transform, load) is one low-cost, efficient approach for connecting to structured data sourced without replicating information. Once information is accessed centrally, it also enables streamlined security and governance.

“The promise of AI agents breaks down when they’re stuck waiting on brittle ETL, dealing with poor data quality, and lacking the right context to perform analysis,” says Preston Wood, chief security and strategy officer at Databahn. “Generating AI-ready data within a data fabric gives agents real-time access to operational data without the latency and drift that undermine decision quality. A well-architected data fabric provides the governance and lineage controls that let you deploy agents confidently, knowing exactly what data they’re touching and why.”

Centralizing AI-ready data

Data fabrics centralize AI-ready data and help data governance teams address data quality issues, biased data concerns, privacy compliance, and other data governance non-negotiables. Data fabrics also help address integration issues, monitor for data pipeline errors, and report on performance latencies. The result is that AI agents, models, and other analytics capabilities can then connect to trusted data sources with consistency.

“As AI agents and MCP architectures increasingly rely on data fabrics as their golden source of truth, data quality stops being a hygiene problem and becomes a trust problem, as we all know that trust is foundational to autonomous decision-making,” says Kellyn Gorman, database and AI advocate and engineer at Redgate Software. “Organizations that invest now in semantic consistency, lineage tracking, and observable data contracts across data fabrics will be the ones whose AI agents can be trusted to act without constant human correction.”

Data fabrics that support zero-ETL and other bidirectional integrations with sources thus become an organizational knowledge base, the data source for training AI models, and a foundation for producing data metrics.

“AI agents are only as reliable as the data they’re built on, and most organizations underestimate how much implicit tribal knowledge lives in their transformation logic rather than their source systems,” says Tobias Ostwald, director of analytics at NMI. “If you’re exposing a data fabric to agents or MCP integrations, you need lineage, testing, and metric definitions baked into the layer itself, not just documented somewhere, because the agent can’t call a colleague to gut-check a number.”

Streamlining security and governance

With a data fabric in place, governance, security, and other risk management leaders have a central location to manage data security, centralize access controls, and fulfill other governance responsibilities. Miles Ward, CTO of AI in Solution Lines at Insight, says, “We have to move past security by isolation to a governance model where the fabric itself enforces the pavement and walls of compliance.”

The data fabric also governs entitlements for AI agents and their users. Centralizing these business rules can help organizations avoid creating AI debt, a risk if controls are implemented directly in data sources or consumers.

“The convergence of AI-generated code sprawl and autonomous MCP connectivity creates a ‘perfect storm’ of architectural drift and toxic permission combinations,” says Karen Cohen, vice president of product at Apiiro. “Effective governance requires a security data fabric that monitors these autonomous connections in real time to enforce intent-based policies and strictly limit agent scope to its specific purpose. By integrating guardrails that align AI-assisted development with secure architecture principles, enterprises can proactively secure their expanding attack surface without sacrificing developer velocity.”

Future considerations for data fabrics

Expect vendors to expand the scope of their data fabrics beyond text and documents. Some will include specialized document processing for common formats such as invoices, contracts, and product documentation. There will be skills and tools to support industry-specific documents such as health records and construction documents. Others will support multimedia file types and provide metadata extraction and search capabilities. 

“Enterprises are asking agents to reason across contracts, images, PDFs, and video, and this is where most data fabrics break,” says Dave Shuman, chief data officer at Precisely. “Multimodal data must be chunked, embedded, and governed with the same rigor as structured data, including lineage and access controls.”

Several other emerging capabilities include:

• Extended support for AI agent interfaces to aid in data discovery, and with greater contextual controls on where and when AI agents can access sensitive data
• Business ontologies, semantic layers, and knowledge graph capabilities, with management tools or integrations with third-party platforms
• Support for data contracts, service-level agreements, centralized data observability, auditing, and other functions that will enhance explainable AI capabilities
• Finops functions to track costs for data owners and consumers

As more companies depend on AI agents in their operations, expect top data fabric platforms to release capabilities to expand scope, scale, use cases, and governance.  

AIs struggle to understand documents designed for humans; the DocLang working group seeks to flip that imbalance with its specification for machine-readable business documents “built from the ground up for LLM tokenizers.”

The working group, founded by IBM, Nvidia, and Red Hat and hosted by the Linux Foundation’s LF AI & Data project, aims to create an open, universal, AI-native document format designed to improve how enterprises prepare, exchange, and govern document data for AI systems. ABBYY and Human Signal will also be involved in its development, and other contributors are welcome.

“Enterprises today work across a fragmented landscape of document formats, including PDFs, JPEGs, and other file types built primarily for human consumption rather than AI interpretation,” the group said in its launch announcement.

“This disconnect can introduce complexity, raise costs, and reduce reliability when extracting meaning from business documents,” as organizations increasingly rely on generative AI and agentic systems, it said.

Mark Collier, executive director of LF AI & Data, said the goal of the DocLang Specification Working Group is to “develop a vendor-neutral, interoperable standard that helps organizations prepare document data for AI more reliably, transparently, and at scale.”

DocLang defines a structured, machine-readable format for documents of any type, like JSON for data, that any tool can implement and any pipeline can consume. It builds on DocLing, a document processing toolkit hosted by LF AI & Data that can transform human-readable PDFs, word processor documents or spreadsheets into structured data.

Standards must evolve for AI

Something like DocLang is needed, said independent technology analyst Carmi Levy. “Existing document standards have done an admirable job allowing global stakeholders to confidently collaborate for decades, but it’s becoming increasingly clear that they are in desperate need of an update as AI reshapes the rules around how work gets done,” he explained.

Largely static document types, he said, “can be somewhat limiting when AI is redefining the very word, ‘document.’ In many ways. AI-age documents are far more iterative and dynamic than what they once were, and the definitions need to evolve with the times. The documents we currently live with simply weren’t designed for the AI age.”

Within that context, Levy said, “DocLang represents an early, best hope of achieving some kind of foundational baseline for document standards, one that will hopefully allow more intelligent, more efficient, lower-risk workflows than is currently the case.”

Taking an open-source, vendor-agnostic approach to the process ensures the collective will take precedence over the needs of specific vendors, he said, adding, “earlier standards-setting efforts around networking, documentation, the web, and the cloud powered the free-flowing digital landscape that defines modern life.”

An AI-centric documentation standard will carry that reality into the next generation of technology, said Levy.

A question of governance

The entire concept of LLMs, Jason Andersen, principal analyst at Moor Insights & Strategy said, “involves using natural human languages. The computer is supposed to understand us without us changing our syntax or language. Forcing a syntax on users is exactly what we have today with SEO and more advanced programming languages.”

With something like DocLang, where the standard can be applied to content ingestion, he said, “I would be OK with that being automated, which seems to be the intent. The use case I envision is that when I upload a document to an agent, a skill can be run to preprocess the document into the DocLang standard format, saving tokens.”

That makes sense, he said, adding that he thinks it’s good “if it can help generate outputs, like a visualization, that can be shared outside an AI tool. On that front, that is also why I am liking Web MCP, since you are just adding some code to the page, like CSS or JavaScript, and the consumer, in this case, an AI browser or skill, is better equipped to handle the site.”

The point, he said, is, “these standards need to preserve the fact that humans can still do what they want, and do not need to know any coding to be proficient. In terms of governance, I am not sure if it matters.”

But one analyst did foresee governance problems arising from DocLang’s use.

Yaz Palanichamy, senior research analyst at Info-Tech Research Group, said DocLang adoption will require organizations to implement and review controls in order to scale its use accountably and securely.

This article first appeared on CIO, on June 10, 2026.