General Catalyst's CEO says companies need to do 4 things for true AI integration that avoids 'hitting a wall'

""When you think about transforming an enterprise with AI, you actually have to do four things correctly," Hemant Taneja said on an episode of the 20VC podcast released on Monday. Taneja said that it is "very, very difficult" to achieve all four things and ensure that AI adoption goes beyond prototyping an OpenAI or Anthropic model. "That's why these things are hitting a wall," he added."

""The VC said that companies need to prepare their data infrastructure for AI adoption first. Data infrastructure includes components like servers, databases, cloud platforms, and networking equipment that work together to make data secure and usable. The second must-have is large language models that understand your business. "You have to train these models in the context of your secret sauce, your business," he said.""

""Next, companies need to think about workforce transformation, since humans and AI will work together. "Some humans are going to manage AI agents. Some AI agents are going to manage humans," he said. "Imagine how the org charts have to change." "The fourth, for all this to work, you actually need courage at the top. The CEOs need to really get behind it to drive it.""

Achieving enterprise AI transformation requires four non-negotiable elements: robust data infrastructure, large language models trained in the context of a company's proprietary business, workforce transformation to enable human–AI collaboration, and courageous CEO-level backing. Data infrastructure includes servers, databases, cloud platforms, and networking to make data secure and usable. Large models must be customized with a company's secret sauce rather than relying solely on off-the-shelf prototypes. Workforce changes include humans managing AI agents and AI agents managing humans, requiring organizational redesign. Strong executive commitment is necessary to move adoption beyond prototyping. General Catalyst has invested in Airbnb, Windsurf, and Mistral AI.

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