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New "State of the Data Lakehouse in the AI Era" Report Shows Data Lakehouses Accelerating AI Readiness for 85% of Firms

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David Marshall | Published: January 9, 2025

As organizations navigate the increasingly complex landscape
of data and artificial intelligence (AI), the data lakehouse has emerged as a
transformative architecture that bridges traditional data warehousing with
modern analytical needs, as  a new survey of 563 IT decision-makers across
industries found that more than 3 out of 5 (67%) of organizations plan to run
the majority of their analytics on data lakehouses within the next three years,
up from 55% today. According to Dremio‘s
annual report, The State of the Data Lakehouse in the AI Era, the pivotal role
of data lakehouse architectures is to enable cost-efficient, AI-ready solutions
for organizations navigating this era of rapid technological advancement. The
report also highlighted the shifting expectations of IT leaders, with 90%
aiming to consolidate analytics into a single location, reflecting a growing
demand for streamlined and unified data strategies.

To download the full report, visit www.dremio.com/dremio-live/.

As enterprises prioritize cost savings and AI readiness, the
report reveals that 19% of respondents rank cost efficiency as the top driver
for adopting data lakehouses, followed closely by unified data access (17%) and
ease of use (17%). These findings emphasize the growing role of data lakehouses
in providing operational efficiency and enabling advanced analytics
capabilities.

According to one respondent, “The most unexpected trend
or challenge encountered this year as a data leader or data engineer has been
the rapid integration of generative AI and large language models (LLMs) into
data workflows, which has significantly altered job roles and required new
skill sets. This shift has created anxiety among employees about job security
and the need to adapt quickly, as many are questioning how these technologies
will impact their positions and the overall workforce dynamics in the data
industry.” 

This sentiment reflects broader trends captured in the
report, where organizations increasingly view data lakehouses as essential to
navigating AI’s rapid integration into business operations.

“The rise of data lakehouses reflects a clear shift
toward architectures that balance flexibility with advanced analytics
capabilities,” said William McKnight, president of McKnight Consulting
Group. “This report underscores the growing importance of aligning data
strategies with business outcomes.”

Key insights include:

  • Broad Adoption and
    Awareness:

    Over three-quarters (77%) of IT decision-makers are highly familiar with
    data lakehouses, reflecting widespread recognition of their value.
  • Migration Trends: 41% of respondents have
    transitioned from cloud data warehouses, and 23% have moved from data
    lakes to embrace the lakehouse architecture.
  • AI and Data Lakehouses: 85% of organizations
    are leveraging data lakehouses for AI model development, underscoring the
    architecture’s critical role in creating AI-ready data. This trend
    highlights the growing demand for data systems that support generative AI
    and large language models, which are transforming analytics workflows.
  • Challenges in AI Data
    Preparation:

    Governance and security (36%) and high data preparation costs (33%) remain
    key obstacles, underscoring the need for robust tools and frameworks.

“The data architecture landscape is at a pivotal point where
the demands of AI and advanced analytics are transforming traditional
approaches to data management,” said Read Maloney, chief marketing officer at
Dremio. “A convergence of business imperatives and technological capabilities
drives the evolution toward data lakehouses which is why they  have moved
from an emerging concept to a foundational element of modern data strategies.
This report underscores how and why businesses are leveraging data lakehouses
to drive innovation while addressing critical challenges like cost efficiency,
governance, and AI readiness.”

As businesses continue to integrate AI into their
operations, the Dremio State of the Data Lakehouse Report serves as a guide for
aligning modern data architectures with the needs of an AI-driven future.